Decentralized exchange (DEX) Hyperliquid (HYPE) is experiencing significant growth in its key metrics and is establishing itself as a preferred trading platform amid rising tensions in Iran.
This increased activity has led HYPE to outperform the market leading cryptocurrenciesboasting a major 23% gain over the past week. However, market analyst Ali Martinez noted that HYPE investors may soon face a new buying opportunity.
New sell signal for Hyperliquid
Analyst is emphasized on March 8, TD Sequential signaled a HYPE buy opportunity, which was later confirmed as the token experienced a 28.23% price increase, rising from around $30 to $38.53.
However, as of March 13, the same indicator is now showing a sell signal, prompting Martinez to warn that increased selling pressure could lead to a short-term decline to around $34.
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According to CoinGecko, it is currently trading at $36.37, which represents a drop of about 6.5%, in addition to a 2.5% return over the past 24 hours. information.
For Martinez, this potential reversal could serve as a strategic buying opportunity before the expected momentum resumes.
Ambitious predictions for HYPE
In addition to the prospects for the rise of the altcoin, a research firm DCo published a new assessment framework for HYPE. They modeled four scenarios based on the potential daily market cap of $1.74 trillion that Hyperliquid could achieve through its HIP-3 protocol.
Using a three-year discounted cash flow (DCF) framework, each scenario assumes a gradual rate: 20% in year 1 (2026), 50% in year 2 (2027), and 100% by year 3 (2028), reflecting a gradual process of building market share.
In a bear scenario where Hyperliquid has just 0.01% of the market, HIP-3 could pay $32 million on a fully-grown, conversion-adjusted TAM basis.
When with basic income $1.35 billion is projected, and considering the final value from the total revenue of 3 years, DCF will bring the estimated value of the enterprise to about $18 billion, which may cause HYPE to reach a new record of $60 per token.
In the base case of 0.10% market capture, Year 3 revenue from HIP-3 would be approximately $322 million, resulting in total revenue of approximately $1.7 billion and an enterprise value of $22 billion. This means that the token price is about $72.
$190 In excellent condition
In crisis scenariowith a 0.50% capture, Year 3 HIP-3 payments will reach $1.6 billion, contributing to total revenue of $3.0 billion. This gives the company an enterprise value of $38 billion, which equates to an estimated price of about $124 billion, representing a full value of about $124 billion.
The most optimistic case, with a 1.00% capture, projects total revenue of $4.6 billion in year 3, with an enterprise value of $59 billion and a HYPE of $190.
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DCo’s analysis shows that even with a default of 20% discount and 20x multiples, the current price of $37 is significantly lower than the price. get a case assessment from 60 dollars.
This suggests that the market has not fully appreciated the potential contributions of HIP-3 and underestimates the inherent value of the Hyperliquid crypto exchange business.
Featured image from OpenArt, chart from TradingView.com
