Key Takeaways:
- Arthur Hayes predicts Hyperliquid’s token HYPE could surge 126x in three years, citing explosive stablecoin growth.
- Hyperliquid now dominates the DEX perpetuals market with 73.6% share, surpassing dYdX.
- Since its 2024 ICO, HYPE is up 630%, trading near $45 and reached all-time high (ATH) levels in July at $49.86.
The broader crypto market capitalization (cap) is currently facing a downtrend, with the market cap decreasing from the recent peaks of $4.05 trillion on 23rd August to $3.86 trillion at the time of reporting, declining by 4.69% over the weekend.
Additionally, the top three cryptocurrencies, according to the highest market cap, have reported declining trends over the past 24 hours with Bitcoin (BTC), Ethereum (ETH) and XRP decreasing by 2.6%, 2.5% and 1.8% respectively.
However, Hyperliquid is one of the most dominant decentralized exchanges (DEXs) in the crypto ecosystem, its native token HYPE has risen by 3.7% over the last 24 hours. This price rise comes a few hours after BitMEX’s co-founder and Chief Investment Officer of Maelstrom, Arthur Hayes, said that HYPE could rally by 126x within the next 3 years. HYPE is currently trading at the level of $45.57.
Arthur Hayes made bold predictions on HYPE at the WebX 2025 conference in Tokyo on Monday. Hayes stated that stablecoin development will increase the DEX’s annualized fees to $258 billion from its current annualized revenue of $1.2 billion.
Essentially, Hyperliquid is a decentralized perpetual futures exchange. Perpetual futures allow traders to trade crypto derivatives with high leverage directly on-chain without an expiry date.
Why is Arthur Hayes So Bullish on $HYPE?
Based on Hayes’s presentation at the WebX 2025 conference in Tokyo, he believes that by 2028, the total stablecoin market will reach $10 trillion. Hayes makes a crucial assumption that the DEX platform could capture 26% of the entire trading activity by 2028, bringing the average daily volume (ADV) to $2.6 trillion.
With a trading fee of 0.03%, it could generate roughly $258 billion in annual fees compared to the current estimate of $1.2 billion in annual fees from a $11.9 billion daily volume, as presented by Hayes.
Upon using a 5% discount rate on its projected annual cash flow by 2028, which is the annual fees ($258 billion). This would give us a terminal value of $5.16 trillion according to Hayes. Terminal value is an assessment of a company’s future valuation based on its predicted long-term earnings.
On dividing the terminal value by the fully diluted valuation (FDV) of $41 billion at the time he was presenting, Hayes arrives at an upside potential of around 126x. All the above calculations are based on optimistic assumptions about Hyperliquid’s future.
On-Chain Signals for $HYPE
According to DefiLlama, Hyperliquid’s DEX volume reached an all-time high (ATH) of $3.38 billion over the weekend, signifying heightened market activity on the DEX.
According to Dune Analytics, the total market share within the DEX perpetual market held by Hyperliquid is currently at 73.6%. Former industry leader dYdX, which used to control 71% at its peak in 2023, has dropped to merely 1.6% in 2025. Hyperliquid has captured significant market share in 2 years, dethroning industry leaders within a short span of time.
Redstone reported that in under two years, the exchange grew from nothing to controlling over 75% of the decentralized perpetuals market, overtaking dYdX.
Since its ICO in November 2024, HYPE has generated a return of 630% going from $6.41 to $45.57 at the time of reporting and it reached its all-time high levels of $49.86 during the last month on July 14th.
Arthur Hayes, known for his bold crypto market predictions, made a prediction on HYPE that it will go 126x within three years. This has garnered significant attention around the DEX platform. However, only time would tell whether Hyperliquid would be able to dominate the competitive DEX space, which changes at an extremely rapid pace.
