Hyperliquid Emerges As Ethereum, Solana Rival: Here's How High HYPE Could Go

Hyperliquid HYPE/USD, a rising decentralized exchange and Layer-1 blockchain, has caught the attention of cryptocurrency enthusiasts after rising almost 800% in three weeks.

What Happened: Pseudonymous analyst Fmoulin wrote a detailed analysis of HYPE in a post on X on Sunday, diving into the project’s revenue potential and growth opportunities.

1. Exchange Market Dominance: Hyperliquid has captured over 50% of decentralized futures trading volume in the past month.

With open interest currently about 10% of that on Binance, the analyst sees significant room for growth, suggesting that as the crypto bull run continues, increased volatility could further boost Hyperliquid’s market share.

2. EVM Opportunity: The forthcoming HyperEVM, an Ethereum Virtual Machine (EVM)-compatible chain, is expected to attract decentralized finance (DeFi) projects and foster innovation.

"Many DeFi teams are preparing to launch alongside the HyperEVM, including AMMs, lending platforms and liquid staking protocols," the analyst notes.

3. Revenue and Valuation: In the last 30 days, Hyperliquid earned $26.5 million in USDC revenue through platform fees and ticker auctions.

Based on comparisons to other Layer-1 and Layer-2 blockchains, HYPE token valuations could range from $41.93 (base case) to $651.48 (bull case), depending on whether Hyperliquid price-to-earnings multiples remain below those of Solana SOL/USD and Ethereum ETH/USD.

4. Risks: The analysis identifies several challenges, including centralization of validators, ecosystem adoption with difficulty attracting quality DeFi projects and regulatory uncertainty.

What's Next: Hyperliquid is positioning itself as a dominant player in the decentralized perpetual futures market, with plans to expand its ecosystem through EVM compatibility.

The projected valuations highlight both its potential and inherent risks, reflecting its early-stage nature.

Read Next:

• ‘Ethereum Killer’ Hyperliquid Explodes For 274% 7-Day Gain, Could Create ‘More Millionaires Than Microsoft At This Rate,’ Trader Says

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