Institutional Access Transforms HYPE Into DeFi’s Next Power Player

The Hyperliquid ecosystem, a decentralized exchange (DEX) for perpetual futures, has seen remarkable growth in both user activity and trading volume, positioning its native token HYPE as a focal point in the DeFi landscape. 21Shares, a Switzerland-based asset manager and issuer of crypto exchange-traded products (ETPs), has launched the first institutional-grade product tracking Hyperliquid on the SIX Swiss Exchange. The product allows investors to gain exposure to the HYPE token without the need for on-chain custody or crypto wallets, signaling a significant step toward mainstream adoption [1]. The ETP carries a 2.50% management fee and is listed under the ticker symbol HYPE [3].

Hyperliquid, launched in late 2022, processes over $8 billion in daily volume, with cumulative trading volume exceeding $2.07 trillion since its 2023 launch [3]. The platform operates on a traditional on-chain order book, enabling direct matching of buy and sell orders and settling trades in under a second without reliance on off-chain infrastructure or external oracles [2]. This high-performance model has allowed Hyperliquid to capture approximately 80% of the decentralized perpetuals trading activity, making it a dominant player in the DeFi derivatives space [2].

The platform’s economic model is driven by trading fees, which are funneled into daily buybacks of the HYPE token. Protocol revenue has consistently exceeded $56 million per month, generating over $1 billion in buybacks to date, creating a consistent market demand for the token [3]. The token's recent surge, reaching a record high of $50.99, has further fueled optimism among institutional and retail investors [1].

Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, has publicly endorsed HYPE, projecting a potential 126x upside over the next three years. His valuation model ties Hyperliquid’s growth to the expansion of the stablecoin market, which he estimates could reach $10 trillion by 2028. By applying a 26.4% daily trading volume ratio—mirroring Binance’s historical performance—Hayes calculates that Hyperliquid could process $2.6 trillion in daily trades, generating $258 billion in annual revenues at a 0.03% fee rate. Discounting these future revenues at a 5% rate yields a present value of $5.16 trillion, compared to HYPE’s current fully diluted valuation of $41 billion [1].

Despite the positive outlook, the model relies on several critical assumptions, including the continued growth of the stablecoin market, Hyperliquid maintaining a Binance-level market share, and fees remaining stable. If these conditions change, the projected outcome would be affected. However, Hayes remains confident in his thesis, describing Hyperliquid as a “decentralized Binance” with the potential to surpass centralized exchanges in terms of market dominance and user base [1].

Hyperliquid’s institutional adoption, combined with its strong performance and unique economic model, has made it a key player in the DeFi derivatives market. As the platform continues to expand its offerings and integrate new features, the HYPE token’s trajectory will likely remain under close scrutiny from both investors and industry analysts.

Source:

[1] Hyperliquid's HYPE Token: Why Arthur Hayes Thinks It Has 126x Upside Potential (https://www.coindesk.com/markets/2025/08/30/hyperliquid-s-hype-token-why-arthur-hayes-thinks-it-has-126x-upside-potential)

[2] 21Shares lists first Hyperliquid ETP on SIX Swiss Exchange (https://cointelegraph.com/news/hyperliquid-token-institutional-europe-new-21shares-etp)

[3] HYPE Token Gets Institutional Access Through New Swiss ETP (https://coinmarketcap.com/academy/article/hype-token-gets-institutional-access-through-new-swiss-etp)