Key Takeaways
- Phantom’s partnership could be the beginning of the ‘everything exchange’ vision for Hyperliquid. Analysts believe that HYPE could explode by over 3x to $120 if this vision is achieved.
Hyperliquid [HYPE] scored a major adoption milestone this week. It partnered with Phantom wallet to power its perpetual (perps) markets for over 10 million users.
Needless to say, top investment figures in the space now believe the platform may be undervalued and it will eventually surpass centralized exchanges (CEXs).
VCs bet on Hyperliquid
In fact, Ryan Watkins, Founder of crypto VC Syncracy Capital, noted that Hyperliquid will act as the liquidity provider or layer for Phantom and other players who will follow suit. He said,
“When I first underwrote Hyperliquid, I assigned little value to builder codes. I now believe it’s one of the most important features that enables Hyperliquid to outcompete CEXs.”
Here, the builder codes are referral tools that let third parties route users or apps to the Hyperliquid exchange and, in return, earn a fee. Put differently, any protocol, app, or other wallets like MetaMask can choose to offer perps by just plugging into Hyperliquid.
The app or wallet users will be leveraging the Hyperliquid system under the hood without even knowing – A liquidity layer or infrastructure as a service. On top of that, there’s a HIP-3 (Hyperliquid Improvement Proposal) that would allow other players to set their own perps market on top of the Hyperliquid layer 1.
This would allow builders to share Hyperliquid fees, an incentive that analysts believe could drive further adoption.
Summing up the potential, Watkins added,
“This means you get magic moments like onboarding 10M+ Phantom users in one-shot. In the future, this could mean a large regional fintech offering access to Hyperliquid in their users’ local language.”
Source: Ryan Watkins/X
At the end, Hyperliquid could become an “everything exchange,” Watkins concluded.
For perspective, Hyperliquid has attracted nearly $400 million in cumulative revenue with about 40k daily users so far.
With Phantom’s +10 million users, it would generate more revenue, according to another VC, Simon Dedic of Moonrock Capital. He echoed Watkins’ position and said,
“Now imagine how much fees the best crypto apps will print once we are at tens of millions of daily active users or even more.”
Previously, Watkins had projected that Hyperliquid could hit $100 billion in market cap as perps become more popular.
A similar projection was made by A1 Research in June, stating that it could hit $70 billion – $120 billion within a year. That would mean a 2x or 3.5x growth from press time levels, implying a price target range of $69 to $120.
In short, HYPE has immense growth potential if its “everything exchange” vision is fully executed and achieved.
