Hyperliquid Retreats to $52 as Analyst Calls Current Valuation 'More Realistic'

Hyperliquid's price has retreated to around $52, marking a return to what analyst Shaunda Devens considers a more realistic valuation. The token had surged above its fundamentals earlier this year, driven by a flow-driven rally that pushed its price well beyond its underlying value.

The strong performance of Hyperliquid, which has climbed against the broader downturn and still holds a year-to-date gain near 101%, has led to increased attention on how far the current pullback might run. Devens noted that the accumulation has left the treasury holding close to 10% of HYPE's circulating supply, the largest share held by any digital-asset treasury in crypto.

The recent price surge was also fueled by news of the AQAv2 upgrade, which routes a majority of stablecoin reserve-yield revenue back to the protocol to fund HYPE buybacks. Devens attributed this rally to both the treasury bid and momentum traders, rather than fundamentals, and saw a clear invalidation once buying stopped.

While Hyperliquid has recently traded largely uncorrelated from the rest of crypto, its core business remains heavily tied to on-chain activity. Devens pointed out that July revenue for HYPE was $43 million, down from $92 million in the same month last year, reflecting a shift in price that is now starting to reflect.