Why Grayscale thinks Hyperliquid’s HYPE is still ‘cheap’ despite institutional sell-off

Hyperliquid’s $HYPE slipped below $55 amid intense institutional selling pressure, but asset manager Grayscale thinks the altcoin is still grossly undervalued.

Drawing from traditional valuation metrics, earnings per share (EPS), Grayscale’s Head of Research Zach Pandl said a similar model, earnings per token (EPT), can apply to $HYPE. According to him, Hyperliquid could make $1B in revenue by the end of 2027. With a projected total $HYPE circulation of 270-310 million, that would translate to $3.25-$3.75 or a valuation multiple of 15x to 18x, Pandl added,

At the current $HYPE price of $54, a forward ‘earnings multiple’ for $HYPE of roughly 15 to 18x, suggesting the token may be undervalued compared to fintech equities.

The aforementioned table showed that stocks tied to Circle, Coinbase, Robinhood, and others were trading at higher multiples relative to their generated revenue.

Assuming $HYPE can eventually trade at 35x or 40x valuation multiples like Coinbase’s COIN or Robinhood’s HOOD would imply a price target of $113 to $150. Grayscale’s Pandl concluded that,

Despite the gains in Hyperliquid’s $HYPE token this year, it still looks cheap compared to fintech equities.

But he noted that the projection could be invalidated if revenue falls below their expectations or token supply exceeds their forecast.

Hyperliquid: Will $HYPE hold on to 2026 gains?

$HYPE nearly quadrupled in H1 2026, running from $20 to about $80 amid U.S Spot ETF demand and institutional FOMO. But it has given back some gains amid an institutional sell-off and FUD.

Notably, crypto VC firms Multicoin Capital and Selini Capital are booking their $HYPE profits.

In particular, Multicoin Capital unstaked over 1M $HYPE valued at $59M and deposited $4.78M on Coinbase Prime. Last week, the firm unstaked another $120M, further spooking the market with pending selling pressure.

Selini Capital also deposited $26.8M $HYPE on the OKX exchange on the 29th of July.

The U.S. spot $HYPE ETFs have also bled $4.5M in July, marking the first negative month since their debut in May. Interestingly, despite the outflows, the $HYPE ETFs’ performance was relatively stronger compared to other spot crypto ETFs.

That said, if Hyperliquid [$HYPE] loses $55, the next potential floor price could be $48 and $45 (the 200-day moving average).

Separately, TradeXYZ, one of Hyperliquid’s dominant HIP-3 deployers, said it will compensate affected SK Hynix (SKHYNIX) traders after a price anomaly liquidated $57.4M in long positions.

The firm noted that the liquidations stemmed from an oracle price anomaly. For analysts, the move to compensate victims could reinforce trust in the deployer and Hyperliquid, too.

Final Summary

• Grayscale said that $HYPE is undervalued at a 15x-18x valuation multiple compared to Circle and Coinbase stocks that are valued at above 30x.
• Institutional sell-off led by Multicoin Capital and U.S. spot ETFs continues to cut $HYPE’s 2026 gains.