Hyperliquid’s token is tanking as ETF investors flee, so why does Grayscale think it is massively undervalued?
Investors are pulling money from the three Hyperliquid-linked ETFs for the first time since launch, with July net outflows topping $13 million and nearly $27 million leaving after demand turned in the second half of the month. The reversal comes as HYPE has fallen more than 13% this month and is about 30% below its mid-June peak. Despite the weak token price, Hyperliquid has surpassed $1 billion in cumulative protocol revenue, driven by fees from its decentralized perpetuals exchange and token buybacks. Grayscale argues HYPE looks cheap on a projected “earnings per token” basis, estimating about $3.25 to $3.75 per token in 2027 and a valuation of roughly 15 to 18 times earnings. Hyperliquid is also expanding beyond crypto into perpetual contracts tied to stocks, commodities, and indexes, which is broadening its revenue base but also adding regulatory and market risks.
