Hyperliquid Outpaces Ethereum and Solana in Revenues – But HYPE Trades at a Massive Discount

In less than a year, Hyperliquid captured nearly 10% of BTC and ETH perp ￰0￱ has even surpassed DeFi rivals and is now challenging ￰1￱ unmatched growth and revenues, HYPE trades at deep discounts to Solana and Ethereum, which has sparked debate over whether it’s severely undervalued. HYPE: The Underdog? Hyperliquid brought in $409 million in user fees in the last six ￰2￱ accounts for 23% more than Ethereum and 75% more than Solana. Yet, its token HYPE trades at an 88% discount to ETH and a 62% discount to SOL on a fully diluted ￰3￱ at “The DeFi Report” point to a combination of product strength, unique tokenomics, and growing market share as reasons the gap may not hold for ￰4￱ many crypto projects, Hyperliquid launched without venture capital involvement, excluding VCs and angels from the token allocation.

Instead, it distributed 31% of the supply to early users at genesis, worth $1.2 billion at the time and now valued at $4.7 ￰5￱ move turned traders into stakeholders and avoided the selling pressure typically caused by VC unlock ￰6￱ addition, the project set aside a 6% foundation budget to fund operations and directed user fees into an Assistance Fund that buys HYPE from the open ￰7￱ reduces token float and supports price discovery. Hyperliquid’s core product is a high-throughput, on-chain central limit order book offering perpetuals and spot ￰8￱ provides sub-second block times, low fees, and a self-custody trading ￰9￱ a system replicates the feel of a centralized exchange but with DeFi ￰10￱ activity is at an all-time high, with daily volumes of $10-$20 billion and $13 billion in open interest across assets, giving the platform roughly 9-11% of global BTC and ETH perps ￰11￱ generated $107 million in fees in the last 30 days, which is well above Solana’s $40 million and Ethereum’s $67 ￰12￱ all revenue is funneled into token ￰13￱ report found that in July alone, $92.2 million in fees led to $90.2 million of HYPE being ￰14￱ say this creates a form of “buyback yield” that accrues directly to holders, unlike traditional fintech or tech valuations where revenues sit with ￰15￱ has also played a role in the project’s growing ￰16￱ has moved beyond being just a perpetuals DEX into developing its own Layer 1 ￰17￱ instance, its HyperEVM allows developers to build against deep liquidity on the protocol’s order books without needing to run their own ￰18￱ strategy, combined with integrations across wallets such as Phantom, Rabby, and Rainbow, as well as lending and bridging products like Hyperlend and Unit Protocol, has widened its reach and strengthened network ￰19￱ an annualized basis, Hyperliquid has processed $1.95 trillion in volume, more than its decentralized competitors ￰20￱ BTC and ETH open interest represents 32% of CME’s and 7.6% of the total across both crypto-native exchanges and ￰21￱ Risks Risks remain, especially with growing competition from Coinbase and Robinhood, reliance on a small validator set, and questions about sustainability, given that a relatively small number of active traders generate most of the ￰22￱ so, with HYPE trading at a $48 billion fully diluted valuation and $16 billion in circulating supply, analysts note that its buyback-driven model and market penetration suggest the token remains undervalued compared to Solana and Ethereum.