As the crypto market continues to experience significant fluctuations, one project has caught the attention of investors and experts alike: Hyperliquid. According to Matt Hougan, Chief Investment Officer at Bitwise, Hyperliquid has emerged as one of the most crucial crypto projects in recent years, with its native HYPE token being vastly undervalued. Hougan believes that investors are underestimating the platform's long-term impact and the valuation of its token, which has been designed to accrue value from day one.
The growth of Hyperliquid can be attributed to its evolution into a financial "super-app," offering exposure to multiple asset classes, including commodities, S&P 500 futures, pre-IPO stocks, and prediction markets. This development has been driven in part by the regulatory environment, with SEC Chairman Paul Atkins' remarks in November 2025 supporting the development of multi-asset trading platforms operating outside conventional SEC structures. As a result, Hyperliquid has seen significant growth, with nearly half of its trading volume now coming from non-crypto assets. Hougan predicts that this figure could rise to 70% by the end of the year, making it one of the fastest-growing financial businesses he has seen.
Token Design and Mispricing
Hougan highlights that Hyperliquid represents a "Gen 2" token, designed to accrue value through its reported policy of directing 99% of trading fees toward buying back HYPE tokens. This approach is a significant departure from tokens launched during former chair Gary Gensler's tenure, which had little or no economic tie to the underlying blockchain or application. According to Hougan, this approach will become the norm for token design in the future, and it's one of the reasons Hyperliquid is the best-performing large-cap crypto asset in the world over the past year. Despite this, Hougan claims that HYPE is currently one of the most mispriced assets in crypto, due to category and anchoring errors.
The recent launch of exchange-traded funds (ETFs) tracking HYPE, including the first US spot ETF by 21Shares and another by Bitwise, has further fueled the token's rally. With HYPE amassing over 25% in gains over the past week alone, it's clear that investors are starting to take notice of its potential. As the crypto market continues to evolve, it will be interesting to see how Hyperliquid and its native HYPE token continue to perform, and whether investors will finally recognize their true value.
