Hyped for Hyperliquid, Off The Grid, Settlement Is Bad Business | Analyst Round Table
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Yeah. Look. I I can't wait until we're bullish on ETH again. Like, that's gonna be a very exciting time. ETH is a moneymaker, objectively.
Everybody that I've talked to has just stopped bridging over to l twos. Like, it just doesn't like, the new l twos, what what was the last one that you were like, oh, this is worth it? Like, what are you gonna do on these l twos? That and at some point, the market realizes that they stopped building out to us because nobody else is funding us. Nothing set on 0 x research is the recommendation to buy or sell securities or tokens. It's podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Boccaccio, Ryan, and our
Agreed.
Agreed. Okay. Fantastic. Big big week. Actually, I feel like we actually have some stuff to talk about this week apart from just meme coins. Hyper Liquid announced that they will be launching their token on the 11th November. Pretty big news. Before I pull up some spreadsheets and some comps, I wanna hear about people's thoughts on Hyperliquid. Have you used it? If you've used it, do you like it? How do you view the perps landscape in general, etcetera, etcetera? What are we what are we thinking?
I think first observation is, you should not be ignoring Hyperliquid. It's rapidly taken market share and has a ton of outstanding reviews, almost universally from crypto people that I speak with. You know, it's obviously generating meaningful revenue and volume. The most interesting thing here is that, like, this is a, like, very unique experiment in crypto where, you know, starting out as an app chain and, you know, pivoting more general purpose, trying to move towards, you know, more spot assets. Like, we'll see how that we'll see how that goes. You know, from our reports that we've written
Yeah. I agree on that, post TGE comment, but I I wanna kinda run over some numbers. So Hyper Liquid is leading in perp's volume. Over the past week, they've done double the volume of their closest competitor. I don't know if that's particularly relevant for, like, 7 day data, but if we look at 30 day data, they are leading as well. I think out of the protocols that I've chosen I chose the relevant ones. So Jupyter, d y, d x, vertex, g m x, Drift, Orderly, and Gains, and Ebo. I think they're, like, 45, 46% of volume over the past month. And, like, based on so I ran some numbers, and based on a
Sorry. So what what's going on here is that you've mapped out, as a function of volume and comping it against, the largest legitimate per sexis in the space that even if volume falls 40%, from pre t g, you're still gonna get a $1,000,000,000 valuation if you're looking at the average valuation or median valuation across, like, relevant comps.
I think at average valuation is, average, like, FTV over fees is 24.4 for the relevant. Like, I only picked relevant protocols. There's some that are higher, some that are lower. I just wanted to do it based on, like, protocols that I care about. Yep. It would be around 1 bill if it was the average. If we're doing the drift and the d y v x multipliers, it's above 1.5 or around 1.5 to above 1.5 bill valuation. And I took now hyperliquid doesn't have fee data available. I know that some of their fees go to the insurance pool and some go to the HLP. But just based off, like, whatever, dydx charge
I mean, I think the most interesting thing that you referenced there is, that d y d x is kind of going the smart contract platform way. I don't wanna make this a unit chain discussion, but unit chain is also do
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