Cantor Projects Strong Future for Hyperliquid, Sees Potential for HYPE to Exceed $200

Despite facing challenges with its price hovering around $27 and a dip of over 50% in 2025, Hyperliquid's token is predicted to experience significant growth in the coming years.

Key Takeaways

Growth Potential: Cantor Fitzgerald predicts that the HYPE token could rise significantly, potentially reaching a value over $200.
Market Dynamics: Hyperliquid's market share has decreased to 17% due to competition from emerging platforms.
Token Buyback Strategy: The Hyperliquid Foundation's proposal to burn 37 million tokens could lead to a deflationary effect, supporting HYPE's value.
Current Price Concerns: Price movements are closely monitored, with key levels noted for potential volatility.

According to a recent analysis from investment bank Cantor Fitzgerald, the volume of trades on the Hyperliquid decentralized exchange (DEX) could increase by an impressive 15% annually. This growth is expected to yield $20 billion in transaction fees over the next decade. Given that most of these fees are allocated for token buybacks, Cantor estimates that the value of Hyperliquid’s token, HYPE, could trade at a multiple of 22.9 to 50 times the annualized fees, potentially resulting in a price between $121 and over $200 per token.

Cantor turns bullish on Hyperliquid, sees 'a path for HYPE eclipsing $200'

The Competitive Landscape for Hyperliquid

Hyperliquid has established itself as a leading perpetual trading platform with features comparable to centralized exchanges (CEX). However, the arrival of new competitors, such as Lighter and Aster (backed by Binance Labs), has diminished its market share from 60% in May to just 17%. This represents a significant 40% loss in dominance.

Hyperliquid HYPE

Despite these competitive pressures, Cantor Fitzgerald remains optimistic, suggesting that concerns over competition may be overstated. They state that many users are simply "point tourists," transitioning between platforms to maximize rewards. The report also notes that HYPE-focused crypto treasuries, led by strategies from Hyperliquid and Hyperion DeFi, are likely to enhance the platform's adoption going forward.

Positive Factors for HYPE

The anticipated introduction of U.S. spot HYPE exchange-traded funds (ETFs) is seen as a potential catalyst for boosting the token in the mid-term. This development might help recover losses of 54% seen in 2025 and improve market sentiment, despite ongoing monthly token unlocks. Additionally, the Hyperliquid Foundation plans to burn 37 million tokens from its buyback program, potentially decreasing supply by 13%, which could positively impact HYPE’s market value.

Hyperliquid

Will the $25 Price Point Hold?

Short-term price movements are currently a point of concern. Following the optimistic catalysts mentioned, many analysts view the present price levels as an opportunity for potential positioning. However, there is a significant risk if market conditions see a drop below the $25 threshold, particularly for a whale holding a $60 million long position, which could lead to liquidation.

The weekly liquidation heatmap indicates key liquidity levels at $25.8 on the lower end and $30.4 to $31.5 on the upside. This suggests that market volatility this week could influence price movements toward these critical levels.

Hyperliquid HYPE

Conclusion

As we look ahead, the future of Hyperliquid and its token, HYPE, seems promising, bolstered by strategic initiatives and market adaptations. However, investors should remain vigilant and monitor the market for emerging trends and price movements.