dailyhodl.com
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.
Generated Image: Midjourney