Cantor Fitzgerald, one of the world’s leading asset managers, has released an in-depth report highlighting the promising future of the decentralized exchange (DEX) Hyperliquid (HYPE).
The Analysis of 62 pages 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 described in the report, Hyperliquid operates as a decentralized exchange specializing in perpetual futures trading 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 trading volume of $2.947 trillion.
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A key feature that makes HYPE particularly attractive, and which is highlighted in the report, is its unique fee structure: approximately 99% of all fees generated by the protocol are allocated to buying back 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 about 5% of the current supply, were bought back and burned.
As we look to launch new products, Cantor Fitzgerald views HYPE as “the exchange of all exchanges” and believes there is a realistic path to growing annual fees 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 a significant market share and has become 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, allowing users to create new markets for a variety of assets, including stocks and commodities.
The Cantor Fitzgerald report highlights that the immediate determinant of HYPE’s market price will depend on industry sentiment towards the competition. The ability of emerging rivals to challenge HYPE and impact its ability to generate fees is critical.
However, the report states that current fears around competition may be exaggerated. It states that “point tourists” – those who move from platform to platform in search of incentives – are likely to return to the platform that offers the greatest liquidity and best execution, which Cantor Fitzgerald says is Hyperliquid.
A mere 1% increase in market share among CEX competitors in the perpetuals sector could translate into trading volume of approximately $600 billion. Based on existing perpetual fee rates, this could result in an additional annual fee of $272 million.
Applying a conservative valuation multiple of 25x to these fees would increase the potential market cap to $6.8 billion.
HYPE price reaches $271?
Assuming moderate stock gains over the next decade — assuming about 17% in perpetual trades and 18% in spot trading — Hyperliquid’s annual fees could top the $5 billion mark.
A conservative valuation multiple of 25x would suggest a future market cap of around $125 billion. Considering that almost all fees generated will be used to buy back 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 predicted expansion of the fully diluted market cap from approximately $15.8 billion today to $125 billion in the future, combined with a declining supply of HYPE tokens, the expected stock price is poised to rise at an even faster pace.
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If 20% of the Hyperliquid token float is bought back – valued today at around $3.5 billion – the report suggests the HYPE price could reach $271 at a fully diluted valuation of $125 billion.
The projections suggest that if HYPE captures just 1% of market share annually and maintains consistent trading volumes of CEXs, HYPE’s price could increase significantly.
The asset manager believes that by year 10, circulating supply could decline from 577.2 million to approximately 144.9 million, while market capitalization could remain around $16.1 billion, based on conservative fee estimates excluding spot and HIP-3 income.
At the time of writing, Hyperliquid’s native token is trading at $26.49, having posted large losses of almost 32% over the past month. This represents a 55% gap from current trading levels and the all-time high of $59.30.
Featured image of DALL-E, chart from TradingView.com