Multicoin Capital expects Hyperliquid’s HYPE token to reach $319 by 2028 despite identifying several structural and market risks that could threaten its long-term outlook.
summary
- Multicoin Capital has forecast a HYPE price of $319 by 2028, citing Hyperliquid’s earnings growth and expanding market share.
- The company cited HIP-3, token buybacks, and rising perpetual futures activity as key drivers behind its bullish outlook.
- Despite the optimistic target, Multicoin warned that regulatory, competition and governance risks and a bearish double top pattern could weigh on HYPE.
According to new a report From Multicoin Capital, investment firm Hyperliquid expects (The noise) to rise approximately five-fold from its current price near $64, based on a base case scenario in which Hyperliquid generates annual profits of about $8 billion by 2028 and trades at a 20 times earnings multiple.
Multicoin also revealed that it began accumulating HYPE in February, making it one of the largest positions in its liquid fund, while adopting a no-trade policy for three days after the report was published.
Why Multicoin believes Hyperliquid can justify a higher valuation
Much of the company’s conviction comes from Hyperliquid’s rapid expansion through 2025. According to Multicoin, the decentralized exchange generated about $873 million in revenue from about $2.9 trillion in trading volume while increasing its user base from about 301,000 to 923,000. During the same period, open interest rose from about $2 billion to $6 billion.
Current market data cited in the report shows that Hyperliquid now represents over 59% of open decentralized perpetual futures. Its outstanding open interest has also reached around $9.6 billion, exceeding the value of its largest on-chain competitors combined.
Beyond decentralized markets, Multicoin claims that Hyperliquid has continued to narrow the gap with centralized exchanges. Monthly perpetual futures trading volume has reached nearly 17% of Binance’s level, while open interest is around 21% of Binance’s, the company’s numbers compared to Binance’s early growth trajectory.
Another pillar of the investment case is HIP-3, an upgrade that allows external teams to launch permanent markets linked to assets such as stocks, commodities and stock indices.
According to Multicoin, open interest tied to the real asset has already exceeded $2.9 billion, while the officially licensed perpetual contract for the S&P 500 index generated more than $100 million in average daily trading volume during its first week.
The report also expects options trading, prediction markets, portfolio spreads, and deeper integration with HyperEVM applications to expand Hyperliquid’s revenue opportunities over the coming years. Multicoin said these additions could help transform the platform into what it described as an “everything exchange” that provides around-the-clock access to multiple asset classes.
What risks could prevent the $319 forecast?
Even with its optimistic valuation, Multicoin admitted that several factors could derail its outlook. The report identified the challenges of decentralization, regulatory uncertainty, governance issues, increased competition, and potential bad debt as the main risks facing the protocol.
Capturing value remains another reason behind the company’s bullish outlook. According to the report, approximately 99% of Hyperliquid Protocol revenue is used to buy back HYPE, effectively removing these tokens from circulation. Multicoin also noted that Hyperliquid has never raised external capital and operates without a separate equity layer, allowing the economics of the protocol to accrue directly to token holders.
The report estimates that Hyperliquid generated approximately $869 million in excess profits for HYPE holders. Based on a token price of close to $63, Multicoin calculates that HYPE trades at about 36 times trailing earnings, or about 30 times after accounting for revenues associated with Hyperliquid’s Coinbase and USDC agreement.
Meanwhile, technical charts present a more cautious picture of the company’s long-term outlook. On the four-hour time frame, HYPE is forming a bearish double top pattern, with a neckline near the $52.7 support level.
If sellers push the token below this support and confirm the pattern, the measured downside target points towards the $28.5 area, indicating that traders may continue to monitor technical risks along with the long-term fundamental outlook for Multicoin.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
