Cantor Fitzgerald, one of the world’s leading asset management firms, has released an in-depth report highlighting the promising future of the decentralized exchange (DEX) Hyperliquid (HYPE).
The 62-page analysis predicts significant growth for both the platform and its native token over the next decade, painting a bullish outlook for investors.
Hyperliquid As ‘The Exchange Of All Exchanges’
As detailed in the report, Hyperliquid operates as a decentralized exchange specializing in trading perpetual futures and is built on a custom layer-1 blockchain. Currently, HYPE has a fully diluted market cap of approximately $15.8 billion.
Year-to-date (YTD) 2025, the platform has generated an impressive $874 million in fees from a staggering $2.947 trillion in trading volume.
A key feature that makes HYPE particularly attractive, and highlighted in the report, is its unique fee structure: approximately 99% of all fees generated by the protocol are allocated to repurchasing and burning the underlying token.
This mechanism not only supports the value of HYPE but also reduces its circulating supply. In early 2025 alone, about 2.6% of all HYPE tokens expected to be in circulation, or roughly 5% of the current supply, were repurchased and burned.
With the anticipation of new product launches, Cantor Fitzgerald views HYPE as “the exchange of all exchanges” and believes there’s a realistic path for annual fees to soar to $5 billion within the next decade.
Why Market Dynamics Favor HYPE
When it comes to the platform’s native token, HYPE has successfully captured considerable market share and emerged as one of the standout products in the cryptocurrency space over the past year.
In addition to perpetual trading, Hyperliquid has launched spot trading and HIP-3 markets, enabling users to create new markets for a variety of assets including stocks and commodities.
Cantor Fitzgerald’s report emphasizes that the immediate determinant of HYPE’s market price will hinge on industry sentiment regarding competition. The ability of emerging rivals to challenge HYPE and affect its fee-generating capacity is paramount.
However, the report argues that current fears surrounding competition may be overstated. It posits that “point tourists”—those who shift from platform to platform seeking incentives—are likely to return to the platform offering the deepest liquidity and best execution, which, according to Cantor Fitzgerald, is Hyperliquid.
A mere 1% increase in market share from CEX competitors in the perpetuals sector could translate to approximately $600 billion in trading volume. Based on existing perpetual fee rates, this could result in an additional $272 million in annual fees.
By applying a conservative 25x valuation multiple to these fees, the potential market capitalization would rise to $6.8 billion.
HYPE Price To Reach $271?
Assuming moderate share gains over the next decade—projecting around 17% in perpetual trades and 18% in spot trading—Hyperliquid’s annual fees could surpass the $5 billion mark.
A conservative valuation multiple of 25x, this would suggest a future market capitalization of approximately $125 billion. Given that nearly all generated fees will be used to repurchase HYPE tokens, a large portion of the circulating supply could potentially be bought back by the time the platform reaches these fee levels.
With a forecasted expansion of the fully diluted market cap from roughly $15.8 billion today to $125 billion in the future, combined with a declining supply of HYPE tokens, the projected share price is poised to increase at an even faster pace.
If 20% of the Hyperliquid token float is repurchased—valued at around $3.5 billion today—the report suggests that the HYPE price could reach $271 at a fully diluted valuation of $125 billion.
The projections suggest that if HYPE captures just 1% of the market share annually and maintains consistent trading volumes from CEXs, the price of HYPE could grow substantially.
By year 10, the asset manager believes that circulating supply could decrease from 577.2 million to approximately 144.9 million, while the market cap could remain around $16.1 billion based on conservative fee estimates excluding spot and HIP-3 revenues.
At the time of writing, Hyperliquid’s native token is trading at $26.49, having recorded major losses of almost 32% over the past month. This represents a 55% gap from the current trading levels and the all-time high of $59.30.
Featured image from DALL-E, chart from TradingView.com
