Bitwise calls HYPE a ‘Gen 2’ crypto token, says its undervalued

Bitwise Chief Investment Officer Matt Hougan said Hyperliquid’s HYPE token remains undervalued as the popular trading platform expands beyond crypto into equities, pre-IPO stocks, commodities and prediction markets.

"HYPE, is the best-performing large-cap crypto asset of 2026, up 77% YTD. And yet I still think investors are underestimating its impact and its value," Hougan said in a note. 

Although Hyperliquid generated $170 billion in trading volume during the past month, according to Hougan, he said Hyperliquid "still needs to mature." The perpetual futures exchange is not available to U.S. users and needs to be integrated into the regulatory system stateside, Hougan added. 

Bitwise recently launched its own HYPE-based exchange-traded fund. The asset manager said Monday, it plans to use a portion of the management fees generated from its BHYP Hyperliquid ETF to accumulate HYPE tokens.

Hougan says Hyperliquid's trading platform possesses considerable potential beyond crypto. "The market is valuing Hyperliquid as a perpetual crypto futures exchange that happens to be growing quickly. But it should be valued as a global super-app covering all assets," he said.

The executive expects trading volume of non-crypto assets on Hyperliquid will grow from nearly half to 70% of total volume on the platform.

HYPE a 'Gen 2' token

Hougan also argued that under the current Securities and Exchange Commission Chairman Paul Atkins he sees HYPE has the room to be a "Gen 2" token, which like a security, is able to increase in value over time. 

"Notably, 99% of trading fees generated on the Hyperliquid platform go directly to buying back HYPE," he said. "More trading → more buybacks → more value accrual. No ambiguity."

Hougan said people viewing Hyperliquid as simply a crypto asset exchange is a large reason its being undervalued. The growth of users also trading "equities, commodities, FX, prediction markets, and structured products," means that Hyperliquid's addressable market includes all of global assets, worth $600 trillion, not only the $3 trillion crypto market, he said.