Is Hyperliquid Undervalued? Grayscale Makes the Case for HYPE

Grayscale Research recently published a report suggesting that the Hyperliquid token could be undervalued. Analysts applied an earnings per token model to HYPE, similar to how investors value traditional stocks. By projecting earnings of roughly 1 billion dollars for the protocol by 2027, the firm suggests the token trades at a multiple between 15 and 18 times forward earnings. This valuation puts the token at a discount when compared to broader fintech equities.

The research points to expected growth in crypto trading volumes and income from stablecoin reserves as primary drivers for this potential. However, the report also acknowledges significant risks. If the network revenue fails to grow as predicted or if the token supply increases faster than expected, the current valuation thesis could face challenges.

The optimistic outlook from Grayscale arrives while HYPE faces short term struggles. The token has fallen about 29 percent from its peak in June. Recent market pressure includes institutional unstaking and notable fund outflows, with major players like Multicoin Capital moving tokens to exchanges.

Investors are now weighing these long term projections against current market sentiment. While the protocol may have strong fundamentals according to the report, traders will likely watch the actual revenue growth and institutional activity closely in the coming months to see if the valuation holds up.