Analyst Predicts 222% Rally for Hyperliquid (HYPE) Driven by Key Factors

Crypto analyst Flood predicts a major surge for Hyperliquid (HYPE), suggesting a potential 222% price increase driven by adoption challenges, revenue generation, and limited investor access. Despite reaching an all-time high, he argues HYPE remains undervalued, with a $12.4 billion market cap. He forecasts key price points at $40 billion market cap and $100 psychologically.

A notable crypto analyst known as Flood has put forward a bold stance on Hyperliquid (HYPE), suggesting that various factors could potentially trigger a significant price increase, possibly up to 222%. The pseudonymous analyst, who has amassed a following of over 255,500 on social media platform X, remains optimistic about the decentralized exchange’s future, especially since HYPE reached an all-time high of $39.68 recently.

Flood underscores that HYPE is undervalued, stating that its growth potential in the decentralized exchange sector isn’t fully reflected in its current price levels. He outlined several reasons backing his bullish sentiment, including the relatively limited accessibility for average investors, or “normies,” who struggle with on-chain transactions. Moreover, HYPE is not yet listed on major tier-one exchanges, which could be inhibiting wider adoption.

The analyst elaborates that concerns about HYPE being pricey overlook the consistent, double-digit growth in open interest the platform is experiencing week-over-week. Additionally, he highlights an impressive revenue stream of around $770 million coming from buybacks through market buys, solidifying the view that exchanges represent lucrative business opportunities in the crypto realm.

Another factor Flood points out is the absence of any unlocks from private market investors. He mentions that there are no vesting periods or preferential deals that could dilute HYPE’s value. Crucially, he notes that for developers wanting to work on perpetual trading products, Hyperliquid stands out as the only viable platform for building due to its unique technical capabilities.

Flood sees HYPE as a great buy even at its current levels, with a personal price target of $40 billion in circulating market cap, which represents a significant increase from its current valuation. HYPE’s market cap is recorded at about $12.402 billion, signalling a potential upside should it reach his envisioned profit-taking threshold. Presently, HYPE trades at $37.07, indicating room for further growth.

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