Hey there, crypto enthusiasts! If you’ve been keeping an eye on the decentralized finance (DeFi) space, you’ve probably heard about Unit Protocol, the standout protocol on Hyperliquid. A recent thread by @esprisi0 on X dives deep into Unit’s potential growth and valuation, and it’s got everyone talking. Let’s break it down in a way that’s easy to digest, even if you’re new to this space!

What Makes Unit Protocol a Big Deal?

Unit Protocol is currently the top dog on Hyperliquid, boasting an impressive $828 million in Total Value Locked (TVL) and a whopping $4 billion in trading volume. But what does that mean? Think of TVL as the amount of money locked into the protocol, showing how much trust users have in it. The high volume, on the other hand, reflects how actively people are trading on the platform. This combo makes Unit a key player in the DeFi world.

The thread highlights that Unit earns revenue from spot volume on its Utokens (tokenized assets on Hyperliquid). With a trading fee of 0.0369% (after a 10% discount from staking $HYPE), Unit keeps half of that—0.01845% of the total volume. Over the last seven days, this translated to $216,000 in fees, which annualizes to about $11.3 million. Add in tokens like $FART as a proxy for volatile TGEs (Token Generation Events) like $PUMP, and you’re looking at a cool $12.8 million in yearly revenue. Not bad, right?

Growth Potential: Where’s the Upside?

So, can Unit keep the momentum going? The answer is a resounding yes, with several growth drivers on the horizon:

• New Utokens: Unit has been launching about one new token pair per month since February 2025, with 5 already live. If this pace continues, we could see 12 new pairs in the next year, including hot tokens like $PUMP.
• Rising Spot Volume: Data shows Unit’s TVL and volume are hitting all-time highs (ATHs). For example, $ETH deposits are surging, and Hyperliquid is capturing a growing share of global volume (0.7% for $ETH and 1.66% for $SOL).
• HIP-3 Opportunities: This upcoming update could bring perpetual contracts for Nasdaq and S&P 500 indices, a game-changer for the protocol. Early data from similar platforms like OstiumLabs suggests $15 million in daily volume, and Unit’s team—stacked with quants from HRT, Jump, and Fortress—could make it a first-mover advantage.

The thread lays out three scenarios for next year’s revenue:

• Bearish: $38.3 million (with $570 million daily volume)
• Neutral: $89.5 million (with $1.33 billion daily volume)
• Bullish: $256 million (with $3.8 billion daily volume)

That’s a wide range, but it shows the potential is massive if Unit plays its cards right!

Valuing Unit: The P/E Ratio Approach

Now, let’s talk valuation. The thread uses a classic Price-to-Earnings (P/E) ratio—a metric from traditional finance—to estimate Unit’s worth. For those unfamiliar, the P/E ratio compares a company’s market value to its earnings, giving a sense of whether it’s over- or undervalued. Based on the revenue projections, here’s the range:

• Bearish: $760 million
• Neutral: $3.5 billion
• Bullish: $10.8 billion

This positions Unit as a potential heavyweight in the DeFi ecosystem, especially since it’s user-first, non-VC-funded, and might reserve a big chunk of its supply for an airdrop. Exciting stuff for investors!

How to Get Involved

Want a piece of the action? The thread suggests farming exposure through Liminal Money, which offers a ~10% APR by trading Utokens passively. This strategy keeps you market-neutral while qualifying you for the $UNIT airdrop. It’s a low-effort way to jump in!

Final Thoughts

Unit Protocol’s rise on Hyperliquid is a story worth watching. With a strong team, growing volume, and innovative features like HIP-3, it could become one of the most profitable protocols out there. Whether you’re a blockchain newbie or a seasoned trader, this thread by @esprisi0 (with a shoutout to @joke_is_here) gives a solid foundation to understand the hype. What do you think—ready to dive into Unit?