Investment firm Apollo Crypto has revealed that Hyperliquid (HYPE) is its largest altcoin holding, with Head of Research Pratik Kala providing a detailed rationale for the position. Kala praised the protocol's product-market fit and its transparent tokenomics, which he described as a refreshing departure from the complex systems seen in previous market cycles. "The tokenomics is refreshing. It uses 97 to 99%, depending on how you want to calculate it, of all the revenues to buy back its token in a very transparent manner," Kala stated via X.
Kala emphasized two core pillars: the exchange's growing traction as a trading venue and its clean token model. He argued that Hyperliquid pairs a working product with a straightforward value accrual mechanism where trading revenue directly funds HYPE buybacks. He also highlighted strong adoption trends, noting that "a lot of the volumes are going there" and that market makers and funds are increasingly using the platform.
A significant part of the bullish case centers on HIP-3, Hyperliquid's product for trading real-world assets like equities and commodities on weekends. Kala shared a personal example where he profited from a weekend trade on OpenAI and Anthropic tokens after news broke while traditional markets were closed. He noted that during a recent silver mania, HIP-3 briefly accounted for 1% to 2% of global silver volumes just weeks after launch, signaling engagement from sophisticated investors. Revenues from HIP-3 are split 50-50 between deployed markets and Hyperliquid, with Hyperliquid's share feeding HYPE buybacks.
Separately, BitMEX co-founder Arthur Hayes predicted the HYPE token could reach $150, a roughly 400% increase from its current price near $31. Hayes, who has been accumulating HYPE since last year, highlighted Hyperliquid's advantage of 24/7 trading availability, a critical feature when traditional exchanges are closed. He specifically pointed to the platform's CL-USDC crude oil perpetual future as a key asset to watch amid Middle East geopolitical tensions.
At the time of reporting, HYPE traded at approximately $30.485 to $31.02. Kala also mentioned future developments like HIP-4 for prediction markets and options, and potential regulatory shifts that could open a path for a U.S.-compliant version.
