Grayscale Investments has thrown its weight behind the Hyperliquid token (HYPE), arguing that the asset looks cheap when stacked against the market caps of traditional crypto giants like Coinbase, Robinhood, and Circle. The asset manager's latest commentary frames HYPE as an undervalued player in the digital asset arena, igniting fresh debate among investors about where the real growth lies.

Grayscale's Bullish Take on HYPE

In a recent analysis, Grayscale highlighted that HYPE's valuation appears modest relative to the revenue multiples of major publicly traded crypto firms. The firm pointed out that while Coinbase, Robinhood, and Circle command hefty market capitalizations, HYPE's current pricing does not fully reflect its on-chain activity and user adoption.

Grayscale's note suggests that the token's ecosystem—anchored by Hyperliquid's perpetuals trading platform—has generated meaningful fees, yet the market has not priced in the same growth trajectory as its centralized counterparts. This discrepancy, the firm argues, could signal upside potential for early believers.

Comparing the Numbers

While Grayscale did not disclose specific price targets, the comparison underscores a broader trend: decentralized platforms are increasingly competing with established fintech names. The firm's analysts noted that HYPE's fee generation and trading volume rival some centralized exchanges, but its market cap trails by a wide margin.

  • Revenue Multiple Gap: HYPE trades at a lower multiple of its generated fees compared to Coinbase, Robinhood, or Circle.
  • On-Chain Activity: Hyperliquid's protocol has seen sustained usage, with daily volumes often surpassing expectations.
  • Market Sentiment: Grayscale's endorsement could shift institutional perception, though volatility remains a concern.

Why the Comparison Matters

The crypto market has long debated whether tokens should be valued like equities or commodities. Grayscale's approach borrows from traditional finance—using revenue multiples—to argue that HYPE is fundamentally underpriced. This methodology, while common in stock analysis, is still emerging for digital assets, making the statement particularly bold.

Coinbase and Robinhood generate billions in revenue from trading fees, subscriptions, and other services. Circle, the issuer of USDC, profits from interest on reserve assets. Hyperliquid, by contrast, operates a decentralized perpetuals exchange where traders pay fees directly to the protocol, which then accrues value to HYPE holders. That direct value capture, Grayscale contends, makes the token's current valuation look lopsided.

The Risks Involved

Critics, however, point out that HYPE carries unique risks. Regulatory uncertainty, smart contract vulnerabilities, and the cyclical nature of trading volumes could all undermine the comparison. Additionally, decentralized platforms often face liquidity challenges that centralized exchanges mitigate through market-making and custody services.

Still, Grayscale's analysis adds a new layer to the narrative—suggesting that the next wave of crypto adoption may come from protocols that generate real cash flow, not just speculative hype.

What This Means for Investors

For retail investors, Grayscale's note serves as a potential signal that institutional players are scouting undervalued assets beyond Bitcoin and Ethereum. The firm's research arm has a track record of influencing market sentiment, and its willingness to call HYPE "cheap" could spark increased interest in the token.

However, the comparison also highlights the maturation of the market. As crypto assets begin to be valued on fundamentals, projects with strong utility and revenue will likely outperform those relying solely on narrative. HYPE's fate may now hinge on whether it can sustain its trading activity and expand its ecosystem.

"Grayscale's framing is a reminder that in crypto, the 'next big thing' often looks overvalued until it doesn't—and sometimes the best opportunities are hiding in plain sight."

Key Takeaways

  • Grayscale argues HYPE is undervalued relative to Coinbase, Robinhood, and Circle based on revenue multiples.
  • Hyperliquid's fee generation and on-chain volume support the bullish case, but risks remain.
  • The analysis reflects a broader shift toward valuing crypto assets on fundamentals rather than just hype.
  • Investors should weigh regulatory and technical risks before acting on Grayscale's commentary.

As the market digests this bold comparison, all eyes will be on HYPE's next moves—and whether Grayscale's call proves prescient or premature.