On August 27, according to analysis by infinitybanyan, Hyperliquid's revenue share in the entire cryptocurrency sector is exceptionally prominent, accounting for 36% of all cryptocurrency revenue. In stark contrast, its native token HYPE's market capitalization only accounts for 1.2% of the total cryptocurrency market capitalization ($3.76 trillion). This data discrepancy has sparked widespread discussion among market participants about whether HYPE's price is undervalued.
Hyperliquid, as a decentralized exchange (DEX), has recently demonstrated strong profitability. Its trading fee income is quite remarkable, especially after introducing popular cryptocurrency trading pairs, which attracted a large number of traders, leading to daily trading fees exceeding $6 million at one point, with daily perpetual contract trading volume reaching as high as $19 billion. Such performance is comparable to some mainstream centralized exchanges. Its position in the DeFi ecosystem has also become increasingly important, providing crucial trading infrastructure for various decentralized financial applications, promoting efficient capital flow and proper asset allocation.
From the perspective of the HYPE token itself, its current market capitalization performance does not fully reflect the revenue strength of the Hyperliquid platform. Logically, such a high proportion of revenue contribution should be more significantly reflected in market capitalization. In the market, some indicators are typically used to assess the reasonableness of cryptocurrency asset valuations, such as Price-to-Earnings (P/E) ratios. While traditional financial indicators cannot be directly applied in the crypto field, the relationship between revenue and market capitalization can still provide some insights. HYPE's current market capitalization share of only 1.2% is severely imbalanced compared to Hyperliquid's 36% revenue share, suggesting that HYPE's price may be undervalued by the market.
Further analyzing HYPE's market performance, technically, HYPE has been fluctuating in the $36 - $50 range during the third quarter. After failing to reach the $50 high in mid-August, the price has retraced and has fallen 16% to date. On the 4-hour chart, both the Relative Strength Index (RSI) and On-Balance Volume (OBV) indicators show that bears dominate, and the price has also dropped below the $42 median. However, from a fundamental perspective, HYPE's Supply-Weighted Profit to Earnings Ratio (SWPE) is currently at 3.19, which measures the ratio of market capitalization to protocol earnings. A low value indicates that its market capitalization is relatively low compared to earnings. Combined with Hyperliquid's plan to use earnings for HYPE buybacks, this further suggests that HYPE's price may be undervalued from a long-term investment perspective.
Additionally, Hyperliquid has made significant progress in ecosystem expansion. In just five months since launching HyperEVM, the Total Value Locked (TVL) has surpassed $2.08 billion, exceeding well-known blockchain platforms like Avalanche and Polygon. By continuously attracting new projects and users into its ecosystem, Hyperliquid's user base has grown from 350,000 in 2024 to over 600,000 active wallets in 2025. More users mean higher trading activity and potential revenue growth, and these positive factors currently seem to be insufficiently reflected in HYPE's market capitalization.
In summary, Hyperliquid holds a strong position with 36% of cryptocurrency revenue, contrasting sharply with HYPE's mere 1.2% market capitalization share. Whether considering the relationship between platform revenue and market capitalization or evaluating various aspects of HYPE's fundamental indicators and ecological development prospects, there is a significant likelihood that HYPE's price is undervalued. However, the cryptocurrency market is filled with uncertainties, and price trends are affected by many factors, including macroeconomic conditions and regulatory policies. Investors must carefully assess risks and closely monitor market dynamics.
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