Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report

Overview

Cantor Fitzgerald, a prominent asset management firm, has released a thorough report projecting substantial growth for the decentralized exchange (DEX) Hyperliquid (HYPE). The 62-page analysis offers a bullish outlook for both the platform and its native token, emphasizing the potential for significant financial gains over the next decade.

Hyperliquid: The Exchange of All Exchanges

According to the report, Hyperliquid operates as a decentralized exchange that specializes in trading perpetual futures, functioning on a custom layer-1 blockchain. As of now, the platform boasts a fully diluted market cap of approximately $15.8 billion. In the year-to-date 2025, Hyperliquid generated around $874 million in fees, supported by a staggering trading volume of $2.947 trillion.

A notable aspect highlighted in the report is Hyperliquid’s unique fee structure. Approximately 99% of the fees generated by the protocol are allocated to the repurchase and burning of its native token, HYPE. This mechanism not only helps to support the value of HYPE but also effectively reduces its circulating supply. In early 2025, about 2.6% of all HYPE tokens expected in circulation, which is roughly 5% of the current supply, were repurchased and burned.

With anticipated new product launches, Cantor Fitzgerald characterizes HYPE as “the exchange of all exchanges” and foresees a realistic path for annual fees to reach $5 billion within the next decade.

Market Dynamics Favoring HYPE

The report elaborates on HYPE’s ability to capture significant market share, emerging as a standout product within the cryptocurrency sector over the past year. In addition to perpetual trading, Hyperliquid has introduced spot trading and HIP-3 markets, allowing users to create new markets for various assets, including stocks and commodities.

Cantor Fitzgerald emphasizes that HYPE’s market price will be heavily influenced by industry sentiment regarding competition. The report suggests that concerns about emerging rivals may be overstated. It posits that “point tourists,” or users who shift between platforms seeking incentives, are likely to return to the platform that offers the deepest liquidity and best execution—attributes that Cantor Fitzgerald attributes to Hyperliquid.

A mere 1% increase in market share from centralized exchange (CEX) competitors in the perpetuals sector could equate to approximately $600 billion in trading volume. Based on existing perpetual fee rates, this could generate an additional $272 million in annual fees. By applying a conservative 25x valuation multiple to these fees, the potential market capitalization could rise to $6.8 billion.

From author

The insights provided by Cantor Fitzgerald’s report on Hyperliquid illuminate the growing potential of decentralized exchanges in the cryptocurrency landscape. The emphasis on a unique fee structure and the platform’s ability to adapt to market dynamics could position Hyperliquid favorably against competition. However, the actual realization of these projections depends significantly on market conditions and user adoption trends.

Impact on the crypto market

• The bullish outlook for Hyperliquid suggests potential growth in decentralized exchanges as viable alternatives to traditional centralized platforms.
• The unique fee structure that supports token repurchase and burning could set a precedent for other DEXs aiming to enhance token value.
• Increased competition among DEXs and CEXs may lead to innovations in trading features and user incentives.
• The projected rise in annual fees could indicate a broader trend of increasing trading volumes in the cryptocurrency markets.
• As Hyperliquid continues to innovate, it may influence investor sentiment and market dynamics across the decentralized finance (DeFi) sector.