Bitwise Flags HYPE as Undervalued Amid 77% Yearly Surge

• Bitwise says Hyperliquid targets the massive global asset market beyond crypto alone.
• HYPE surged 77% this year despite claims of continued undervaluation from Bitwise.
• Coinbase and Circle partnership could strengthen HYPE demand and platform revenue growth.

Hyperliquid continues drawing attention after another strong market performance. HYPE climbed more than 8% within 24 hours and traded near $48.70 during publication. The token has already gained 77% since January, making HYPE the best-performing large-cap crypto asset this year. Despite that rally, Bitwise believes the market still undervalues Hyperliquid’s long-term potential. The investment firm argues that traders continue viewing Hyperliquid too narrowly while ignoring the broader financial market that the platform now targets.

Bitwise CIO Matt Hougan recently published a detailed note explaining why HYPE remains undervalued. According to Hougan, investors continue making two major mistakes when analyzing Hyperliquid. First, many underestimate the size of the market the platform wants to capture. Second, traders fail to understand how HYPE benefits directly from platform activity. Hyperliquid first gained popularity through crypto perpetual futures trading.

However, the platform has expanded far beyond digital assets during recent months. Users can now access equities, pre-IPO shares, commodities, and prediction markets through the same ecosystem. That expansion changes the entire growth narrative surrounding Hyperliquid. Hougan argued that investors still compare Hyperliquid with traditional crypto exchanges instead of global financial platforms. In his view, that comparison misses the bigger picture. Bitwise believes Hyperliquid targets a market far larger than crypto alone.

Instead of focusing only on the $3 trillion crypto sector, Hougan pointed toward the $600 trillion global asset market. That shift dramatically increases potential growth expectations for the platform. Trading activity also supports Bitwise’s bullish outlook. Hyperliquid generated roughly $170 billion in monthly trading volume recently. Hougan expects non-crypto assets to represent nearly 70% of future platform activity over time. Currently, those markets account for almost half of total trading volume.

Bitwise also highlighted several external factors supporting future growth. One major development involves SEC Chair Paul Atkins, who publicly supports financial super-apps offering multiple asset classes under one regulatory structure. That stance could benefit platforms like Hyperliquid as regulation evolves. Another important development came through Hyperliquid’s recent partnership with Coinbase and Circle.

According to Bitwise analysts, the agreement redirects stablecoin economics toward trading platforms instead of issuers. That shift could strengthen demand for HYPE while reducing pressure from competing stablecoin businesses. Hougan also noted that Hyperliquid still has substantial room for expansion. The platform remains unavailable for U.S. users and still requires deeper domestic regulatory integration.

Greater access could unlock another wave of growth later. Bitwise recently launched a HYPE-focused exchange-traded fund called BHYP. The company also plans using part of management fee revenue to accumulate additional HYPE tokens. That strategy signals growing institutional confidence surrounding Hyperliquid’s long-term future.