HYPE Gains Attention as Bitwise Flags Massive Undervaluation

Bitwise, the institutional cryptocurrency asset manager, has publicly flagged Hyperliquid's HYPE token as one of the most undervalued digital assets in the market, despite the token's impressive 77% gain since the beginning of 2026. Bitwise Chief Investment Officer Matt Hougan published a detailed analysis arguing that investors continue to fundamentally misunderstand Hyperliquid's business model and addressable market opportunity. According to the analysis, the platform generates an estimated $800 million to $1 billion in annualized revenue, yet the market has failed to appropriately price this into HYPE's valuation.

Hougan identified two critical analytical errors made by traders and investors assessing Hyperliquid. First, market participants dramatically underestimate the size of the total addressable market the platform targets. Second, investors fail to recognize how HYPE token holders directly benefit from platform activity through the platform's buyback mechanism. Hyperliquid initially gained prominence as a cryptocurrency perpetual futures trading venue, but the platform has substantially expanded its product offerings in recent months to include traditional equities, pre-IPO shares, commodities, and prediction markets. This transformation fundamentally changes Hyperliquid's growth trajectory and competitive positioning.

Bitwise's core thesis centers on a market valuation mismatch driven by categorization error. Most institutional and retail investors continue comparing Hyperliquid to traditional cryptocurrency exchanges—a narrow peer group that obscures the platform's true ambitions. Hougan contends that Hyperliquid should instead be evaluated against global financial platforms competing for a vastly larger market that encompasses all asset classes beyond crypto. The distinction carries significant valuation implications, as the addressable market for a global trading platform substantially exceeds that of a crypto-native exchange. HYPE traded near $48.70 at the time of publication following an 8% single-day gain, underscoring continued market momentum despite Bitwise's persistent undervaluation thesis. Supplemental reporting indicates that a Coinbase and Circle partnership could provide additional tailwinds by strengthening platform demand and accelerating revenue growth trajectories.