Multicoin Capital is making a public case that Hyperliquid’s HYPE token could see meaningful upside if the decentralized derivatives venue continues expanding revenue, open interest, and product coverage. In a June 25 analysis and accompanying X thread, Tushar Jain, co-founder and managing partner of Multicoin Capital, said HYPE has become one of the largest positions in the firm’s liquid hedge fund after aggressive accumulation since February.
Multicoin Sees HYPE Upside as Revenue Expands
Multicoin’s thesis frames Hyperliquid as an “everything” derivatives exchange: a vertically integrated layer 1 blockchain and decentralized exchange built for high-speed trading while preserving non-custodial execution. The firm’s report, written by Spencer Applebaum, Shayon Sengupta and Jain, argues that Hyperliquid has already reached a scale uncommon among onchain trading venues and is beginning to compete more directly with centralized exchanges.
The report highlights rapid growth across users, open interest, revenue and trading volume. “Hyperliquid is a vertically integrated layer 1 blockchain and decentralized exchange purpose-built for high-speed trading. In 2025, Hyperliquid generated ~$873 million in revenue across ~$2.9 trillion in trading volume. It grew from ~301k to ~923k users and ended the year with ~$6 billion in open interest.” Multicoin also said Hyperliquid currently controls more than 59% of open interest across DeFi perpetuals markets, with roughly $9.6 billion in open interest exceeding major onchain competitors combined.
Jain’s X thread said Multicoin believes the market is valuing HYPE too narrowly at around $63. The firm’s base case projects about $8 billion in annual earnings by 2028, which it said would imply a HYPE price of roughly $319 at a 20x multiple. The report also draws a comparison with Binance’s early growth, noting that Multicoin published a BNB valuation report around $10 in 2019 and that BNB later traded near $563.
Hyperliquid Growth Thesis Centers on Buybacks
A central part of Multicoin’s argument is that HYPE captures exchange economics more directly than many other crypto tokens. The report states: “HYPE is one of the cleanest token designs we’ve seen in crypto. Approximately 99% of protocol revenue is used to buy back HYPE, which is then effectively removed from circulation. There’s no separate equity layer sitting above the token.” Multicoin also emphasized that Hyperliquid has not raised outside capital, meaning there are no preferred shareholders or venture investors with competing claims on the business, in the firm’s view.
The firm identified several growth drivers that it believes can continue compounding revenue. Jain pointed to HIP-3 permissionless markets, saying real-world-asset-linked open interest has surpassed $2.9 billion, with oil, gold, silver, equity indices and individual stocks available through deployers such as TradeXYZ. He also cited HIP-4 prediction markets, cross margin, builder codes routing flow from wallets such as Phantom and MetaMask, and a Coinbase/USDC stablecoin agreement that Multicoin estimates could generate more than $200 million annualized at current USDC supply.
Multicoin said the expansion may push Hyperliquid beyond crypto-native perps and spot trading into a broader market structure. “Hyperliquid is following a similar playbook, but with structural advantages Binance didn’t have. It’s non-custodial, execution is fully onchain and verifiable, and revenue is used for daily token buybacks rather than accruing to a separate equity layer. It’s also expanding into commodities, equities, prediction markets, and options, and outsources user acquisition (through builder codes) to the community.” The firm also acknowledged risks involving decentralization, governance, regulation, competition, bad debt and HyperEVM composability, while arguing that those risks are manageable relative to the potential upside.
Multicoin’s HYPE call is ultimately a revenue-and-token-capture thesis: if Hyperliquid keeps expanding volume, open interest and product breadth, the firm expects buybacks to translate that growth into token demand. The case remains an investment view from a fund with a disclosed large position, but it offers a clear framework for how Multicoin is valuing one of the fastest-growing onchain derivatives venues.
AI Transparency Note: This article was prepared with the assistance of an AI system based on the sources listed and was reviewed, edited, and approved by a human editor before publication. All quotes, data points, and factual claims are intended to be grounded in the cited source material; however, errors cannot be ruled out entirely.