Hyperliquid: The Rise of a Decentralized Exchange
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Market Leadership: Hyperliquid captures approximately 80% of all decentralized perpetual contract trading volume, establishing itself as a leader in the rapidly growing market and attracting significant trader interest.
- Revenue Growth Potential: The platform boasts an annualized revenue nearing $874 million, primarily driven by traders seeking to leverage trades on select stocks and cryptocurrencies, indicating a robust growth potential in its business model.
- Innovative Upgrade: The HIP-3 upgrade allows anyone staking 500,000 Hype tokens (about $31 million) to deploy new perpetual futures markets for nearly any asset, enabling the platform to flexibly respond to market demands while keeping operational costs low.
- Buyback Program: Hyperliquid routes 99% of its trading fees into repurchasing its own tokens, with an expected annual buyback of about 7% of its market cap, a strategy that not only enhances token value but also boosts holder confidence.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 142.520
Low
230.00
Averages
361.63
High
440.00
Current: 142.520
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the onchain economy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. The Company offers products and services to various customer groups: consumers, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime trading, markets, base protocol and Coinbase wallet. The Company also provides market infrastructure in the form of exchanges for customers to trade spots and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hyperliquid: The Rise of a Decentralized Exchange
- Revenue Growth Potential: Hyperliquid's annualized revenue is nearing $874 million, primarily driven by traders seeking to leverage trades on select stocks and cryptocurrencies, indicating strong growth potential in the decentralized perpetual contract market.
- Market Share Leadership: The platform captures approximately 80% of all decentralized perpetual contract trading volume, establishing itself as a leader in this rapidly growing segment, despite facing pressure from competitors like Coinbase.
- Innovative Upgrade: The HIP-3 upgrade allows anyone staking 500,000 Hype tokens (about $31 million) to deploy new perpetual futures markets, enabling Hyperliquid to flexibly support trading of various assets without a centralized listing committee.
- Buyback Program: Hyperliquid retains almost none of its revenue, instead routing 99% of trading fees into buybacks of its own token, with plans to repurchase about 7% of its market cap annually, thereby enhancing token value and boosting holder confidence.
See More
Hyperliquid: The Rise of a Decentralized Exchange
- Market Leadership: Hyperliquid captures approximately 80% of all decentralized perpetual contract trading volume, establishing itself as a leader in the rapidly growing market and attracting significant trader interest.
- Revenue Growth Potential: The platform boasts an annualized revenue nearing $874 million, primarily driven by traders seeking to leverage trades on select stocks and cryptocurrencies, indicating a robust growth potential in its business model.
- Innovative Upgrade: The HIP-3 upgrade allows anyone staking 500,000 Hype tokens (about $31 million) to deploy new perpetual futures markets for nearly any asset, enabling the platform to flexibly respond to market demands while keeping operational costs low.
- Buyback Program: Hyperliquid routes 99% of its trading fees into repurchasing its own tokens, with an expected annual buyback of about 7% of its market cap, a strategy that not only enhances token value but also boosts holder confidence.
See More
Cathie Wood's Daily ETF Trading Moves
- Palantir Stock Update: Palantir's shares have fallen 48% since their peak last November, despite revenue growth of 70% and 85% in the last two quarters, indicating strong business potential, yet the declining stock price may present a contrarian investment opportunity.
- Cerebras IPO Performance: Cerebras opened at $350 on its debut but has since dropped over 50%, and while its first-quarter revenue surged 94%, high customer concentration and declining margins have led to cautious market sentiment regarding its future prospects.
- Coinbase Market Challenges: Coinbase's stock has plummeted 45% over the past year, with revenue declining by 22% and 31% in the last two quarters, highlighting significant pressure on profitability due to the weakening cryptocurrency market, with future rebounds reliant on market recovery.
- Investor Strategy Analysis: Cathie Wood's strategy of increasing positions in Palantir, Cerebras, and Coinbase amid market volatility reflects her optimistic long-term outlook on these tech stocks, suggesting potential low-entry points for investors despite short-term challenges.
See More
US Stocks Close Mixed: Tech Stocks Weigh on Market
- Tech Stock Weakness: Apple’s stock fell over 6% after raising prices on Macs, iPads, and Vision Pro to offset memory chip shortages, significantly dragging down the S&P 500 and Dow Jones Industrial Average, highlighting the vulnerability of tech stocks in the current market.
- Chip Sector Strength: Micron Technology’s forecast of $50 billion in Q4 revenue, well above the $43.24 billion consensus, led to a 15% stock surge, bolstering investor confidence in the AI sector and potentially driving growth across related industries.
- Positive Economic Data: Initial jobless claims fell to 215,000, below the expected 225,000, indicating a robust labor market, while May personal spending and income exceeded expectations, suggesting sustained consumer spending that could support the stock market.
- International Market Rally: European and Asian stock markets closed higher, with the Euro Stoxx 50 and Japan’s Nikkei 225 rising by 0.85% and 4.61%, respectively, reflecting global optimism about the US economic recovery, which may provide support for US stocks.
See More
US Stocks Rise Slightly, Led by Chipmakers
- Chipmaker Surge: US stocks rose today, led by Micron Technology's forecast of $50 billion in Q4 revenue, significantly above the $43.24 billion consensus, resulting in an 11% stock price increase and bolstering the bullish case for AI trades.
- Positive Economic Indicators: US economic data revealed an upward revision of Q1 GDP to 2.1%, surpassing the expected 1.6%, while weekly initial jobless claims fell by 12,000 to 215,000, indicating a robust labor market that enhances market confidence.
- Improved Inflation Expectations: The May core PCE price index rose 3.4% year-over-year, aligning with expectations, and the 10-year Treasury yield dropped to a 6-week low of 4.36%, providing support for stocks and alleviating investor concerns about rate hikes.
- Apple's Stock Decline: Despite overall market gains, Apple's stock fell over 5% after raising prices on Macs and iPads to offset memory chip shortages, which limited the broader market's upward momentum.
See More
Bitcoin Selloff Continues, Pressuring Related Stocks
- Bitcoin Price Decline: Bitcoin has dropped over 5% in the last 24 hours to around $59,360, marking a roughly 10% decline over the past week and nearly 23% over the past month, significantly impacting investor confidence.
- ETF Withdrawals: The weakness in Bitcoin is partly attributed to continued withdrawals from spot ETFs and increased institutional selling, indicating a waning interest in Bitcoin that could affect its future price trajectory.
- Shift in Investment Trends: Investors are reallocating funds towards AI-linked stocks and upcoming megacap listings, which has diminished Bitcoin's attractiveness in the near term, exacerbating its downward price pressure.
- Impact on Related Stocks: As Bitcoin declines, related crypto stocks such as MSTR, APLD, and COIN are also under pressure, demonstrating how quickly sentiment shifts in Bitcoin can adversely affect associated equities, prompting investors to reassess their portfolios.
See More
Hyperliquid: The Rise of a Decentralized Exchange
- Revenue Growth Potential: Hyperliquid's annualized revenue is nearing $874 million, primarily driven by traders seeking to leverage trades on select stocks and cryptocurrencies, indicating strong growth potential in the decentralized perpetual contract market.
- Market Share Leadership: The platform captures approximately 80% of all decentralized perpetual contract trading volume, establishing itself as a leader in this rapidly growing segment, despite facing pressure from competitors like Coinbase.
- Innovative Upgrade: The HIP-3 upgrade allows anyone staking 500,000 Hype tokens (about $31 million) to deploy new perpetual futures markets, enabling Hyperliquid to flexibly support trading of various assets without a centralized listing committee.
- Buyback Program: Hyperliquid retains almost none of its revenue, instead routing 99% of trading fees into buybacks of its own token, with plans to repurchase about 7% of its market cap annually, thereby enhancing token value and boosting holder confidence.
See More
Hyperliquid: The Rise of a Decentralized Exchange
- Market Leadership: Hyperliquid captures approximately 80% of all decentralized perpetual contract trading volume, establishing itself as a leader in the rapidly growing market and attracting significant trader interest.
- Revenue Growth Potential: The platform boasts an annualized revenue nearing $874 million, primarily driven by traders seeking to leverage trades on select stocks and cryptocurrencies, indicating a robust growth potential in its business model.
- Innovative Upgrade: The HIP-3 upgrade allows anyone staking 500,000 Hype tokens (about $31 million) to deploy new perpetual futures markets for nearly any asset, enabling the platform to flexibly respond to market demands while keeping operational costs low.
- Buyback Program: Hyperliquid routes 99% of its trading fees into repurchasing its own tokens, with an expected annual buyback of about 7% of its market cap, a strategy that not only enhances token value but also boosts holder confidence.
See More
Cathie Wood's Daily ETF Trading Moves
- Palantir Stock Update: Palantir's shares have fallen 48% since their peak last November, despite revenue growth of 70% and 85% in the last two quarters, indicating strong business potential, yet the declining stock price may present a contrarian investment opportunity.
- Cerebras IPO Performance: Cerebras opened at $350 on its debut but has since dropped over 50%, and while its first-quarter revenue surged 94%, high customer concentration and declining margins have led to cautious market sentiment regarding its future prospects.
- Coinbase Market Challenges: Coinbase's stock has plummeted 45% over the past year, with revenue declining by 22% and 31% in the last two quarters, highlighting significant pressure on profitability due to the weakening cryptocurrency market, with future rebounds reliant on market recovery.
- Investor Strategy Analysis: Cathie Wood's strategy of increasing positions in Palantir, Cerebras, and Coinbase amid market volatility reflects her optimistic long-term outlook on these tech stocks, suggesting potential low-entry points for investors despite short-term challenges.
See More
US Stocks Close Mixed: Tech Stocks Weigh on Market
- Tech Stock Weakness: Apple’s stock fell over 6% after raising prices on Macs, iPads, and Vision Pro to offset memory chip shortages, significantly dragging down the S&P 500 and Dow Jones Industrial Average, highlighting the vulnerability of tech stocks in the current market.
- Chip Sector Strength: Micron Technology’s forecast of $50 billion in Q4 revenue, well above the $43.24 billion consensus, led to a 15% stock surge, bolstering investor confidence in the AI sector and potentially driving growth across related industries.
- Positive Economic Data: Initial jobless claims fell to 215,000, below the expected 225,000, indicating a robust labor market, while May personal spending and income exceeded expectations, suggesting sustained consumer spending that could support the stock market.
- International Market Rally: European and Asian stock markets closed higher, with the Euro Stoxx 50 and Japan’s Nikkei 225 rising by 0.85% and 4.61%, respectively, reflecting global optimism about the US economic recovery, which may provide support for US stocks.
See More
US Stocks Rise Slightly, Led by Chipmakers
- Chipmaker Surge: US stocks rose today, led by Micron Technology's forecast of $50 billion in Q4 revenue, significantly above the $43.24 billion consensus, resulting in an 11% stock price increase and bolstering the bullish case for AI trades.
- Positive Economic Indicators: US economic data revealed an upward revision of Q1 GDP to 2.1%, surpassing the expected 1.6%, while weekly initial jobless claims fell by 12,000 to 215,000, indicating a robust labor market that enhances market confidence.
- Improved Inflation Expectations: The May core PCE price index rose 3.4% year-over-year, aligning with expectations, and the 10-year Treasury yield dropped to a 6-week low of 4.36%, providing support for stocks and alleviating investor concerns about rate hikes.
- Apple's Stock Decline: Despite overall market gains, Apple's stock fell over 5% after raising prices on Macs and iPads to offset memory chip shortages, which limited the broader market's upward momentum.
See More
Bitcoin Selloff Continues, Pressuring Related Stocks
- Bitcoin Price Decline: Bitcoin has dropped over 5% in the last 24 hours to around $59,360, marking a roughly 10% decline over the past week and nearly 23% over the past month, significantly impacting investor confidence.
- ETF Withdrawals: The weakness in Bitcoin is partly attributed to continued withdrawals from spot ETFs and increased institutional selling, indicating a waning interest in Bitcoin that could affect its future price trajectory.
- Shift in Investment Trends: Investors are reallocating funds towards AI-linked stocks and upcoming megacap listings, which has diminished Bitcoin's attractiveness in the near term, exacerbating its downward price pressure.
- Impact on Related Stocks: As Bitcoin declines, related crypto stocks such as MSTR, APLD, and COIN are also under pressure, demonstrating how quickly sentiment shifts in Bitcoin can adversely affect associated equities, prompting investors to reassess their portfolios.
See More
