If you've been keeping an eye on the crypto trading scene, especially where meme tokens thrive, you've probably heard of Hyperliquid. This decentralized exchange (DEX) for perpetual futures has been making waves, and a recent thread from GLC Research breaks down why its native token, $HYPE, might be seriously undervalued. Let's unpack this in a way that's easy to follow, even if you're not a finance whiz.

First off, what's Hyperliquid? It's a blockchain-based platform that lets users trade perpetual contracts—basically, futures that don't expire—on various assets, including hot meme tokens. Unlike traditional exchanges, it's fully on-chain, meaning everything happens directly on the blockchain for transparency and security. And $HYPE is the token that powers it all, with a unique model where most revenues go back to holders through buybacks.

GLC Research, a buyside crypto analysis firm, kicked off their thread by comparing Hyperliquid's profitability to some big names: Nasdaq, Robinhood (HOOD), and Coinbase (COIN). They used adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization—a fancy way to measure operating profit) for the giants and Hyperliquid's revenue, which is pretty much free cash flow since 97% of it funds buybacks.

On an annualized basis from recent data, Nasdaq clocks in at about $3 billion in adjusted EBITDA, while Robinhood and Coinbase are around $2 billion each. Hyperliquid? It's at roughly $1.3 billion in revenue/free cash flow based on August figures. That's impressive for a younger player, showing it's already at a scale similar to these established exchanges. Plus, its model is super efficient—most of that cash goes straight to investors.

But here's the kicker: despite this strong performance, $HYPE trades at much lower valuation multiples. Think of multiples as how much you're paying per dollar of earnings. Robinhood and Coinbase are at around 40x EV/EBITDA (enterprise value to EBITDA), Nasdaq at under 20x, but Hyperliquid is at just 9x EV/FCF (free cash flow). That's a steal, especially since Hyperliquid is growing faster than the others.

A big hang-up for some folks is the "FDV" or fully diluted valuation—the total value if all possible tokens were in circulation. GLC argues this is overblown. Hyperliquid's team is small (just 11 people), bootstrapped without VC money, and has a track record of putting the community first. They don't count treasury shares in traditional stock valuations, so why inflate $HYPE's value with uncirculated tokens? Any future releases, like from Airdrop 2.0, would likely be gradual, similar to stock issuance, and not a sudden dump.

Shifting gears to growth—Hyperliquid is on fire. Trading volumes jumped from $13 billion weekly in Q4 2024 to an average of $47 billion in the first half of 2025, peaking at over $78 billion. It now commands over 73% of the DEX perpetuals market share. Even against centralized exchanges (CEXs), it's gaining ground thanks to low fees, deep liquidity, and being the first to list hot new assets, like meme tokens.

For meme token enthusiasts, this is huge. Hyperliquid has become the prime spot for trading fresh launches, such as the Trump memecoin or PUMP. During PUMP's debut, it had the deepest liquidity and tightest spreads—better than many CEXs. This draws in traders chasing the next big meme pump, boosting volumes and revenues.

Another game-changer is Unit, Hyperliquid's asset tokenization layer launched in February 2025. It makes depositing and withdrawing assets seamless, opening doors for more users and assets. So far, Unit-onboarded assets have racked up over $20 billion in volume, though spot trading is still a small slice (2%) compared to perps. On CEXs, spot is 15-30%, so there's tons of room to grow—especially for meme tokens that start as spot trades.

Wrapping it up, GLC sees Hyperliquid as undervalued given its cash-generating prowess, ethical team, and upcoming catalysts like HIP-3 (letting big holders launch perps and earn fees), Unit expansion, and integrations with wallets like Phantom and Rabby. For meme token traders, Hyperliquid's dominance in quick listings and deep liquidity means it's a key platform to watch—and $HYPE could benefit massively as the ecosystem expands.

If you want the full scoop, check out GLC's semiannual report on Hyperliquid. They also mentioned an interview on HypeStrat that dives into how $HYPE might hit Wall Street. As always, do your own research—crypto's volatile, and this isn't financial advice.

For more insights on meme tokens and the platforms powering them, stick around on Meme Insider. We're all about decoding the wild world of blockchain memes.