Bitwise Asset Management has made a public valuation case for Hyperliquid’s HYPE token, arguing that the asset remains substantially undervalued even after gaining 77% year to date. The firm’s argument, outlined by Chief Investment Officer Matt Hougan in a May 19 blog post, centers on revenue capture, token buybacks and Hyperliquid’s ambition to expand beyond a derivatives venue into a broader trading platform.
The case matters because Bitwise is not framing HYPE as a simple momentum trade. Its thesis rests on measurable platform revenue and aggressive tokenomics, giving institutional investors and compliance teams a more concrete framework to evaluate the token’s potential role in trading desks, funds and balance-sheet strategies.
Bitwise Frames HYPE Around Revenue and Buybacks
Hougan’s memo positions Hyperliquid as a trading “super-app” aimed at global asset markets, rather than only a crypto derivatives platform. Bitwise argues that the market is underestimating both Hyperliquid’s addressable market and HYPE’s ability to capture value from activity across the platform.
Hyperliquid is not a crypto app. It's a super app.
It's not targeting the $3 trillion crypto economy. It's targeting the $600 trillion global asset market.
Investors are valuing it as one thing. It's the other. https://t.co/DTdYf7FpGb
— Matt Hougan (@Matt_Hougan) May 19, 2026
The firm’s quantitative case is striking. Hyperliquid is estimated to be generating an annualized revenue run rate of $800 million to $1 billion, while its tokenomics direct roughly 99% of trading fees toward token buybacks. That fee-to-buyback structure is central to Bitwise’s valuation argument, because it could tighten effective supply as trading volumes expand.
Bitwise also disclosed its own exposure to the token. The firm said it has allocated roughly 10% of its balance-sheet exposure to the HYPE opportunity and has staked more than 6 million HYPE tokens, presenting the position as an expression of conviction rather than passive market participation.
Institutional Interest Meets Execution Risk
The memo has renewed attention on HYPE, but it also raises the question Bitwise itself acknowledged: why has the broader market not already priced in the combination of platform expansion and buybacks? Bitwise’s answer is that investors are making two errors, underestimating the size of the opportunity and underweighting the token’s value-capture mechanics.
The thesis offers a valuation framework tied to revenue and supply dynamics rather than narrative alone. If Hyperliquid sustains the revenue trajectory Bitwise cites, HYPE could become a more credible asset for desks looking beyond speculative beta exposure.
The model brings a different set of questions. A token whose investment case depends heavily on fee-driven buybacks requires careful review around custody, disclosure, exchange support and fund eligibility.
The next phase will depend on whether Hyperliquid can maintain the revenue levels Bitwise highlights and whether buybacks meaningfully compress tradable supply at scale. Those two variables will determine whether HYPE’s apparent mispricing becomes an institutional catalyst or remains a valuation gap exposed to execution risk and shifting market sentiment.