Hyperliquid (HYPE)

The new @Grayscale research has me thinking about where institutional flows go next, if CLARITY actually passes.

Hint: not the cheapest names on the list.

Here's what it argues:

→ Assets like BTC are valued on supply and demand, while protocols like Hyperliquid can now be valued on cash flows – the same way you'd value a business

→ Several of the top revenue protocols trade at roughly 1x annual revenue, including @Pumpfun ($459M), @PancakeSwap ($322M) and @MeteoraAG, while @HyperliquidX leads on revenue at $871M at a 15x multiple

→ Out of 15, 11 are financial apps. Grayscale sees the CLARITY Act passing in the next few weeks as the catalyst that funnels institutional flows into this category

→ The revenue multiples look attractive relative to TradFi comps because crypto protocols run with almost no overhead. A protocol at 9x revenue is cheaper than a software business at 9x would be

If CLARITY lands, the image below basically becomes a shopping list.

It's flying way too under the radar that @DeriveXYZ is where the majority of $HYPE options trading and open interest is happening.

In the same way that TradFi is watching @HyperliquidX for signal on HIP3 markets, the entire $HYPE market is having real price discovery and signal happening on Derive. If you think $HYPE is headed to $100 or $200, ethereum:0xb1d1eae60eea9525032a6dcb4c1ce336a1de71be is absolutely beta to that due to the fortunes that'll be made by existing $HYPE options positions and the increased volume/fees Derive will see on that market.

It's hard to overstate how much of a breakout success $HYPE options have been on Derive, and it's likely that other altcoins will follow. Already seeing early signs of $SOL becoming increasingly liquid and competitive there.

Mammothly undervalued relative to it's potential. Best R:R for a 10x in the entire market imo