- Cantor Fitzgerald estimates that Hyperliquid will process $5 billion in annual fees within 10 years.
- The DeFi platform’s sustained growth could drive its market cap to $200 billion.
- Bitwise recently amended its Hyperliquid ETF, signalling the imminent launch of the product by next year.
- Hyper Foundation proposed burning all tokens accumulated in the Assistance Fund HYPE, accounting for more than 10% of HYPE’s circulating supply.
Hyperliquid (HYPE) is positioning itself as the next big breakout star of the cryptocurrency industry. Cantor Fitzgerald, an American financial services firm, estimates it’s building momentum toward a $200 billion valuation.
How HYPE is Building Value
Cantor likens the potential explosion of Hyperliquid DeFi to that of Solana (SOL) last cycle. Crucial to this projection are its “overweight” ratings for Hyperion DeFi (HYPD) and Hyperliquid Strategies (PURR). Both function as digital asset treasury companies (DATs) with yield-generating features through their staking, validation, and market-building activities within the Hyperliquid ecosystem.
The financial firm explained in its 62-page report that Hyperliquid’s operational exposure to these platforms elevates it beyond being a speculative perpetual futures DeFi protocol. The model enables it to evolve into a layer 1 (L1) platform business, mirroring the bullish narratives around Solana.
Given the potential revenue unlocked by its growing use cases and adoption, Cantor’s 10-year projection indicates that Hyperliquid is on its way to achieving $5 billion in annual fees. Driven by its increased market penetration, especially with HYPD and PURR facilitating public access to its assets, the firm forecasts a 50x growth in HYPE’s ecosystem, which could make its market capitalization explode to $200 billion.
Why Hyperliquid Stands Out
What makes Hyperliquid attractive to users and investors is its unique fee structure. The model allocates 99% of the protocol fees to repurchasing and burning the chain’s token.
The process accelerates HYPE’s deflationary mechanism. With sustained or rising demand, this could translate into a valuation for the token in the future. Such an assumption reinforces Cantor’s prediction of a $5 billion annual fee for Hyperliquid within the decade.
However, Cantor clarified that the figures are grounded on Hyperliquid maintaining a significant market share. Additionally, one must consider potential competitors that may challenge the DeFi platform’s business model, particularly its fee structure.
Nonetheless, Cantor is confident in Hyperliquid’s ability to attract a loyal customer and investor base, thanks to its deep liquidity, best-in-class network execution, and network incentives.
Hyperliquid Updates
Meanwhile, two key events in the Hyperliquid ecosystem may cause short-term volatility in its prices. Barring any sudden movements in Bitcoin (BTC) and the broader crypto market due to unforeseen macro developments, the public is on the lookout for the two pending exchange-traded funds (ETFs), which will provide investors with exposure to HYPE.
One is from Bitwise and the other is from 21Shares. The former has recently submitted an amendment to its S-1 filing with the US Securities and Exchange Commission (SEC), suggesting the product may launch early next year based on Bloomberg’s Eric Balchunas.
Another event worth noting in the Hyperliquid space is Hyper Fundation’s proposal to burn the tokens accumulated by the Assistance Fund HYPE. The fund essentially holds tokens collected from on-chain trading fees. Although they are currently in an address without a private key, effectively rendering them inoperable, the burn will ensure their permanent removal from circulation.
Since the fund accounts for over 10% of HYPE’s circulating supply, the community’s approval of the burn event will likely lead to a measured upside for the token in the long run, which can be amplified by bullish sentiment around Hyperliquid.
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