Hyperliquid (HYPE) Could See Prices Reach $190 In Optimistic Market Capture Scenario

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Decentralized exchange (DEX) Hyperliquid (HYPE) is experiencing a notable surge in its key metrics, positioning itself as a preferred trading platform amid rising tensions in Iran. This increased activity has propelled HYPE to outperform the market’s leading cryptocurrencies , boasting a major 23% gain over the past week. However, market analyst Ali Martinez has indicated that HYPE investors may soon encounter a new buying opportunity. New Sell Signal For Hyperliquid The analyst highlighted that on March 8, the TD Sequential had signaled a buying opportunity for HYPE, which was subsequently confirmed as the token experienced a price increase of 28.23%, rising from approximately $30 to a high near $38.53. However, as of March 13, the same indicator is now flashing a sell signal, prompting Martinez to caution that increasing selling pressure could lead to a short-term retracement to around $34. Related Reading Hyperliquid (HYPE) Under The Lens: These 3 Metrics Point To Severe Undervaluation 1 day ago Currently trading at $36.37, this would represent a decline of approximately 6.5%, in addition to a recent 2.5% pullback observed over the last 24 hours, according to CoinGecko data . The daily chart shows HYPE’s price recovery followed by Friday’s retrace to $36. Source: HYPEUSDT on TradingView.com For Martinez, this potential pullback may serve as a strategic buying opportunity before the expected upward momentum resumes. Ambitious Projections For HYPE Adding to the altcoin’s bullish outlook, research firm DCo released a new valuation framework for HYPE. They modeled four scenarios based on the potential market capture of the $1.74 trillion daily Total Addressable Market (TAM) that Hyperliquid could attain through its HIP-3 protocol. Utilizing a three-year discounted cash flow (DCF) framework, each scenario assumes a gradual capture rate: 20% in Year 1 (2026), 50% in Year 2 (2027), and 100% by Year 3 (2028), reflecting the gradual process of building market share. In a bear case scenario, where Hyperliquid captures just 0.01% of the market, HIP-3 could generate $32 million in annual fees at full ramp-up based on the conversion-adjusted TAM. When combined with baseline revenue projected at $1.35 billion and considering the terminal value from Year 3 total revenue, the DCF results in an estimated enterprise value of approximately $18 billion, which could result in HYPE reaching a new record of $60 per token. Under the base case of 0.10% market capture, Year 3 revenue from HIP-3 would climb to roughly $322 million, resulting in a total revenue of about $1.7 billion and an enterprise value nearing $22 billion. This would imply a token price around $72. $190 In Most Optimistic Case In the bullish scenario , with a 0.50% capture, the Year 3 HIP-3 fees would reach $1.6 billion, contributing to a total revenue of $3.0 billion. This would yield an enterprise value of $38 billion, corresponding to an implied price of about $124, representing a fully diluted valuation of around $124 billion. The most optimistic case, positioned at a 1.00% capture, projects total Year 3 revenue of $4.6 billion, with an enterprise value of $59 billion and HYPE potentially valued at $190. Related Reading Bitcoin Historically Surges 54% On Average Post-US Midterm Elections, Binance 1 day ago DCo’s analysis reveals that, even at a default 20% discount and 20x multiple, the current price of $37 is considerably lower than the bear case valuation of $60. This suggests that the market has not fully appreciated the potential contributions from HIP-3 and is undervaluing the inherent value of Hyperliquid’s crypto exchange business. Featured image from OpenArt, chart from TradingView.com