Hyperliquid, a decentralized exchange specializing in perpetual futures, is generating revenue at a pace that rivals and even surpasses Ethereum. In recent weeks, Hyperliquid has consistently earned two to five times Ethereum’s revenue, putting the spotlight on whether its token, HYPE, is undervalued compared to ETH.
The numbers are striking. In the last 24 hours alone, Hyperliquid booked more than 5.5 million dollars in revenue. Over a week, that figure jumps above 28 million dollars, which, annualized, would exceed 2 billion dollars. With 97 percent of fees funneled back into token buybacks and burns, the value accrues directly to HYPE holders. Yet while Ethereum’s market capitalization stands near 550 billion dollars, HYPE is valued at about 16.5 billion. The mismatch has investors asking tough questions.
Hyperliquid is doing 2-5X of Ethereum’s revenue on a weekly basis.
But Mcap highlights a different story – $HYPE = $16.5 Billion$ETH = $550 Billion
Is $HYPE massively undervalued? Let’s break this down 👇 @HyperliquidX @ethereum pic.twitter.com/P15MtVjrAH
— Baselayer (@BaselayerC) August 27, 2025
The Engine Behind the Revenue
Hyperliquid’s rapid growth stems from its dominance in on-chain perpetuals trading. Perpetual futures, or “perps,” are contracts similar to futures but without an expiry date. They allow traders to take leveraged bets on crypto prices, making them one of the most active areas in DeFi.
Hyperliquid has captured this market. Its total value locked sits at over 2.6 billion dollars, with open interest above 15 billion dollars and trading volume around 8.5 billion dollars. That level of activity translates into fees, and fees translate into revenue. In July, Hyperliquid captured an eye-popping 35% of all blockchain revenue, outpacing not only Ethereum but every other network and application.
Why so much Revenue?
Hyperliquid dominates on-chain perps
TVL – $2.6+ Billion
Open Interest – $15+ Billion
Trading Volume – $8.5+ Billion35% of ALL blockchain revenue for July captured!
— Baselayer (@BaselayerC) August 27, 2025
The buyback-and-burn model amplifies the impact. Nearly all the fees collected are used to repurchase HYPE tokens from the market and permanently remove them. In theory, this reduces supply over time while demand grows, creating upward pressure on the token’s price. For holders, it is a direct way to share in the exchange’s success.
Valuation Gap or Justified Spread
When comparing valuations, the contrast is clear. Ethereum trades at a price-to-sales ratio estimated between 250 and 300 times. Hyperliquid, by contrast, sits at just seven to eight times. To put this into perspective, many traditional tech firms like Apple or Microsoft trade around 25 to 30 times earnings. By this measure, Hyperliquid appears cheap.
The OG smart contract platform – $ETH
Mcap – $550 Billion
P/S – 250-300XThe DEX of the year – $HYPE
Mcap – $16 Billion
P/S – 7-8XThe definition of undervaluation?
— Baselayer (@BaselayerC) August 27, 2025
But valuation is not only about revenue. Ethereum secures thousands of applications, powers stablecoins, and is considered the backbone of decentralized finance. Hyperliquid is a high-performing exchange but far narrower in scope. Its long-term sustainability will depend on whether trading volumes remain strong in a volatile market.
Disclaimer
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