Hyperliquid [HYPE] is undervalued relative to ETH, SOL – Crypto VC

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Is HYPE the Next Big Thing? 🤑

Hyperliquid [HYPE] is undervalued relative to <a href="https://pricpr.com/eth-usd/">ETH</a>, <a href="https://pricpr.com/sol-usd/">SOL</a> – Crypto VC

  • A crypto VC claimed that HYPE could be undervalued at current levels. 
  • The broader market rout has exposed HYPE to a 50% decline. 

Hyperliquid [HYPE], apparently, is massively undervalued compared to Ethereum [ETH] or Solana [SOL] according to this crypto VC fella. Ryan Watkins, partner at Syncracy Capital, that’s his name, reckons HYPE is the deal of the century. 🤷‍♂️ Watkins said, 

“(Hyperliquid) is the dominant decentralized derivatives exchange with 60%+ market share; it is also the highest earning blockchain today behind Solana and Ethereum. Yet $HYPE trades at the lowest multiple of its peers.”

Watkins shared a chart showing Hyperliquid as one of the top three chains when it comes to fees. This little guy, operating as both a DEX and a layer 1 blockchain, raked in $577M in annualized fees, just a hair behind Tron [TRX]. Pretty impressive, huh?

HYPE’s potential

Watkins, in his HYPE manifesto, claimed this thing could rival those big boys like Binance. He said Hyperliquid has grabbed a huge chunk of the perpetual market since late 2024.

So what’s the impact on HYPE? Watkins said the strong growth and earnings ($200 million) have allowed the team to buy back a ton of their own tokens. This, he reckons, is a good thing. He said, 

“This not only provided strong incentives for recipients to hold rather than immediately sell, but also created strong buying pressure for HYPE as the fees fueled large scale buybacks.”

But hold your horses! Despite all this, HYPE is down 50% from its December high of $35, currently trading at $17.

Since February, the daily RSI has been stuck below a neutral level, suggesting a undervalued token with a lot of folks selling.

If things keep going south, HYPE could drop to $12-$14 support (bullish order block) or even $10. But if it jumps above $20, watch out! It could turn bullish and shoot up even higher.

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2025-03-07 08:25