Hyperliquid's HYPE Token Sees 222% Upside Potential Says Strategist

A widely followed crypto strategist has identified several key factors that could drive the layer-1 protocol Hyperliquid (HYPE) to significantly higher valuations. The pseudonymous analyst, known as Flood, shared his bullish outlook with his 255,500 followers on the social media platform X, despite HYPE recently reaching a new all-time high of $39.68.

Flood argues that HYPE remains undervalued when considering the platform's growth trajectory within the decentralized exchange space. He highlights several reasons why investing in HYPE at its current price point could be advantageous. Firstly, many potential investors are unable to purchase HYPE due to difficulties in navigating the on-chain process. Secondly, the token is not listed on any tier-one exchanges, which limits its accessibility. Flood also notes that the current price does not account for Hyperliquid's growth, as the platform has been experiencing double-digit percentage increases in open interest week-over-week.

Additionally, Flood points out that Hyperliquid's current revenues from buybacks amount to $770 million, making it one of the most profitable businesses in the crypto world. He also emphasizes that there are no unlocks from private market investors, no vesting bags, and no sweetheart deals, which could potentially dilute the value of the token. Most importantly, Flood highlights that Hyperliquid is the only venue for developers building products that interact with perpetual trading, giving it a unique advantage in the market.

According to Flood's analysis, HYPE has a market cap of $12.402 billion, suggesting a 222% upside potential if the layer-1 platform reaches his profit-taking level of $40 billion in circulating supply. He also notes that $100 is a psychological level to be aware of. At the time of writing, HYPE is valued at $37.07.

Flood's bullish stance on HYPE is based on a combination of factors, including the platform's growth trajectory, lack of accessibility for many investors, and its unique position in the decentralized exchange space. While his analysis is optimistic, it is important to note that investing in cryptocurrencies carries significant risks, and investors should conduct their own due diligence before making any high-risk investments.