Hyperliquid’s native token HYPE has been named as one of the major cryptocurrencies expected to deliver strong performance in 2026.

On May 20, blockchain media outlet CoinPost reported that Bitwise Chief Investment Officer Matt Hougan (맷 호건) assessed Hyperliquid as still undervalued even after rising about 90 percent since the start of the year.

He cited 3 reasons. Hyperliquid started as a perpetual futures exchange, but about half of its trading volume now comes from non-crypto assets such as commodities, S&P 500 futures and pre-IPO stocks. He expected that share to rise to 70 percent by the end of 2026.

Its revenue model was also presented as a key reason. Hougan estimated Hyperliquid’s annual revenue at $800 million to $1 billion. Revenue sources include perpetual futures trading fees, spot fees and builder code fees. He said 99 percent of trading fees are directly used to buy HYPE, and assessed the value-accrual mechanism as clear.

He also mentioned a comparison between market value and revenue. He calculated that Hyperliquid’s market capitalisation of $10 billion to $11 billion is about 10 to 14 times its annual revenue, which is used as funds for HYPE purchases. Hougan compared this with the price-to-earnings ratios of Robinhood and CME Group, while assuming that tokens and stocks have different legal rights. Still, he argued that the current price level is undervalued given the pace of growth.

Hyperliquid’s growth thesis is also intertwined with U.S. regulatory debate. Hougan assessed that a “super app” concept presented in November by Paul Atkins, chairman of the U.S. Securities and Exchange Commission, aligns with Hyperliquid’s direction of expansion. If a platform that can trade multiple asset classes under a single licence becomes reality, he said Hyperliquid could be targeting not a single crypto market but a $600 trillion global market for all assets.

Separately from its growth, regulatory pressure is also increasing. Bloomberg reported that Intercontinental Exchange and CME Group have lobbied regulators and Congress to have Hyperliquid register with the U.S. Commodity Futures Trading Commission. The 2 exchanges view anonymous trading without know-your-customer checks and trade surveillance as a channel for sanctions evasion, anti-money laundering risks and price manipulation.

An expanding market size is cited as a backdrop that heightens those concerns. According to data compiled by Artemis, Hyperliquid’s daily average trading volume related to crude oil topped $700 million in April. That marks a sharp increase from the millions of dollars before a conflict with Iran broke out.

Hyperliquid is also speeding up its policy response. Jeff Yan (제프 얀), a co-founder of Hyperliquid, said on X, formerly Twitter, that he visited Washington and met policymakers with the Hyperliquid Policy Center as the U.S. Congress reviews the Clarity bill. Yan said they discussed that on-chain trading is a financial innovation that can meet global demand, and regulatory pathways to open an on-chain derivatives market to U.S. users.

It also pushed back against concerns about manipulation. Hyperliquid denies such concerns, citing that all transactions are disclosed in real time on the blockchain.

The next issue is whether the CFTC will apply existing regulations to Hyperliquid or create a separate framework tailored to the decentralised finance market. Depending on the regulatory approach, Hyperliquid’s pace of business expansion and the basis for valuing HYPE could also change.