A widely followed crypto strategist thinks several fundamental factors are conspiring to send the layer-1 protocol Hyperliquid (HYPE) to much higher valuations.
Pseudonymous analyst Flood tells his 255,500 followers on the social media platform X that he’s bullish on the decentralized exchange even after HYPE printed a new all-time high of $39.68 yesterday.
According to the analyst, HYPE is “still cheap” when you take into account the platform’s growth trajectory in the decentralized exchange space.
“Why do you still get paid on buying HYPE at $39:
– Lots of normies unable to buy, these people cannot figure out how to get on-chain
– Spot not listed in any tier-one exchange
– Claiming token is expensive here is not pricing in any growth, while Hyperliquid’s been growing open interest double-digit percentage week-over-week
– $770,000,000 at present revenues of buybacks (market buys)
– Exchanges are the most profitable businesses in the entire crypto world, you get exposure to the fastest-growing one
– No unlocks from private market investors, no vesting bags and no sweetheart deals
– Most importantly, builder codes, if you’re a developer building a product that wants to interact with perp trading, there is only one venue to build on and that’s Hyperliquid.
Still cheap, my take profit levels at $40 billion circulating. Not fully diluted valuation.
$100 also psychological level to be aware of.”
HYPE has a market cap of $12.402 billion, indicating a 222% upside potential if the layer-1 platform hits Flood’s profit-taking level.
At time of writing, HYPE is worth $37.07.
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