Bitwise CIO Sees Hyperliquid Doubling to $120 — and Still Not Being Overvalued

Bitwise Chief Investment Officer Matt Hougan published a bullish assessment of Hyperliquid on X this Wednesday, arguing the platform’s native token, HYPE, could double from current levels and still be “fairly valued”— while also flagging what he sees as early signals that the broader crypto market may be forming a bottom.

Why Hyperliquid Is Not Just a Crypto Exchange Anymore 

Hougan opened his latest piece with the macro picture. Bitcoin (BTC) has once again led the current relief rally, gaining approximately 9% to trade at around $66,000, while the Nasdaq-100 has fallen 6% over the same period. 

Exchange-traded fund (ETF) flows are turning positive, and sentiment is improving, the executive said, though he stopped short of declaring the bear market over. “While it’s too soon to sound the all-clear, it’s promising enough that I’m starting to get questions about what comes next,” he wrote.

His answer to that question centers on two companies he believes are leading a convergence between traditional finance and crypto from opposite sides — Hyperliquid and Robinhood (HOOD). 

Hougan described Hyperliquid as a Layer 1 (L1) blockchain built around a crypto-focused perpetual derivatives market — where traders speculate on future prices of assets without holding them directly, with positions settling instantly and trading available around the clock. 

Nearly half of all volume on Hyperliquid today comes from conventional assets — oil, silver, and the S&P 500. The platform is also moving into spot commodities, prediction markets, and options.

But what separates Hyperliquid from other crypto platforms, in his view, is a combination of genuine revenue and what he calls strong tokenomics. The platform directs 99% of its revenue toward buying and burning HYPE tokens on the open market — shrinking supply as usage grows. 

From $800 Million in Revenue to a $120 Price Target For HYPE

Hougan forecasted that Hyperliquid is on pace to generate approximately $800 million in revenue this year, meaning the buyback program is removing significant token supply from circulation. 

That mechanism directly ties the token’s value to the platform’s usage — a design that Hougan said resonates with investors who have watched other crypto applications build large user bases and trading volumes while their tokens went nowhere.

At HYPE’s current price of approximately $60, Hougan’s argument is that a move to $120 — a full doubling — would still represent fair value given the platform’s revenue base and buyback program. 

He also pointed to other tokens he believes are moving in a similar direction — Uniswap (UNI) and Aave (AAVE), which he said operate at significant scale and are actively improving their own tokenomics, and Morpho, which he said is eyeing the same path.

Hougan closed with a broader thesis about where crypto is ultimately heading. The greatest success of blockchain technology, he argued, will come when it is so deeply embedded in the architecture of the financial system that most people do not realize it is there at all. 

The next bull market — when traditional finance and crypto become structurally inseparable — is when that happens. “Investors would do well to position themselves accordingly in the meantime,” he wrote.

Featured image generated with OpenArt.