Grayscale says Hyperliquid HYPE token undervalued

A major digital asset manager has concluded that the Hyperliquid network's native token, HYPE, appears undervalued when analyzed using traditional stock market metrics, even as the token faces significant selling pressure from institutional investors. The analysis, released on July 28 and 29, applies a forward price-to-earnings ratio to the cryptocurrency, suggesting it trades at a discount compared to established fintech companies.

Grayscale's research team, led by Head of Research Zach Pandl, valued HYPE using an "earnings per token" framework modeled on the corporate earnings-per-share metric. The firm projects that the Hyperliquid protocol could generate approximately $1 billion in earnings by the end of 2027, driven by a recovery in crypto trading activity and a new revenue stream from a partnership where Coinbase serves as the network's official USDC treasury deployer. Based on an estimated circulating supply of 270 million to 310 million tokens by late 2027, this translates to projected earnings of $3.25 to $3.75 per token.

At a recent price of around $54, this implies a forward price-to-earnings multiple of roughly 15 to 18 times. Grayscale's analysis indicates this...