Hyperliquid’s Rise: Revenue, Valuation & Risks | Michael Nadeau
Episode publishedPodcast: BanklessBankless
Transcript preview
Preview only
Hey. Bankless Nation special episode for you today. It's something that I've wanted to dig into for some time. What is the bull case for hype? Hype, of course, is the hyper liquid token. This is the perps exchange that is taking all of crypto by storm. They also have an EVM chain. The question on my mind is, is it too late to buy? Should I buy hype now or is it overvalued? That's the question. Overvalued or undervalued at current price. And what is this project? And also, what are the risks? As a user, what sort of property rights do I have, and is Hyperliquid a threat to other layer ones? Som
Yeah. Printing printing money, I think, is is the story here, and and it was something that we just, like, kinda couldn't ignore. So we've been kind of, you know, watching Hyperliquid from afar for a little while, and the the protocol just continues to to print cash. It's a it's a perps DEX and really started as an app chain and really started with a product focus, and we're gonna get into, I think, the inception story, which is really a lot of the story here. But, yeah, just just really, you know, making a lot of money and challenging, you know, the the fees that some of these larger l ones a
On this chart, we're seeing 3,500,000.0 in daily fees. That's what Hyperliquid as kind of a protocol, as a perps exchange is doing right now. That's the revenue that it's generating, 3.5 per day. Yes?
Yes.
And this has been on an upward trajectory. It's kind of, like, doubled or tripled since the beginning of this year. Yes?
Volumes are up. Open interest is up. You know, animal spirits are are on chain right now. And so, yeah, Hyperliquid is really kind of attracting a lot of the energy in in crypto right now.
I was talking to Hazeeb on the roll up yesterday, and we had some charts because it just sort of crescendoed. It kinda hit a moment, it felt like, last week where people were noticing all of this activity on on hype. And, of course, every time there's a big trade, because it's all on chain, you can see the big trade. And so they'll be like, oh, Bitcoin whale, swapping this amount of Bitcoin for, like, some other asset, and everyone notices it. Everyone sees it because it's in the billions of dollars. So here's a tweet. Hype is doing 36% of all crypto revenues, while its market cap is 1.2% of t
over the last six months is coming from a subset of users that is in the range of, like, 40 to 60,000 per day. So the story is interesting because when when you zoom out I mean, they launched less than a year ago. To be printing that much money over over six months is is pretty wild. Yeah. But it's coming from a very kind of small subset of users that are that are very active on Hyperliquid. And, actually, Artemis has some data on the average revenue per user, and it's, like, 1.6 k per per month that that HyperLiquid users are spending on the protocol.
So This is it. You have a chart. Right? So $1.61.0.6 k per
Keep exploring with a free account.
A free account preserves the short preview. Upgrade to Pro for the full transcript and episode chat.