A 62-page report from Cantor Fitzgerald has fundamentally shifted how Wall Street views decentralized exchange infrastructure, projecting Hyperliquid's HYPE token could reach a $200 billion market capitalization within ten years based on $5 billion in projected annual revenue and a 50x earnings multiple.
The $200B Vision: Cantor Fitzgerald's detailed 62-page analysis treats Hyperliquid not as speculative DeFi but as foundational trading infrastructure comparable to global exchanges, marking a significant shift in institutional crypto valuation methodology.
📊 Institutional Research | 🔗 Source: CoinTrendsCrypto Analysis
📊 Cantor Fitzgerald Hyperliquid Valuation Model (December 2025)
Data Source: Cantor Fitzgerald Research Report, December 2025
📈 10-Year Valuation Projection - Cantor Fitzgerald Model
Source: Cantor Fitzgerald Report, December 2025
Part 1: The Wall Street Infrastructure Thesis
Cantor Fitzgerald's analysis represents a paradigm shift in how traditional finance evaluates cryptocurrency projects. Rather than treating Hyperliquid as another speculative DeFi protocol, the 62-page report frames it as core trading infrastructure comparable to global exchanges like CME or ICE.
Cantor's infrastructure thesis treats Hyperliquid not as experimental DeFi but as a foundational trading venue, applying traditional equity-style revenue modeling, cash-flow multiples, and infrastructure comparisons that signal growing institutional acceptance of decentralized perpetual exchanges.
Part 2: Revenue Model and Fee Economics
Hyperliquid's decentralized perpetual futures exchange has generated approximately $874 million in fees from nearly $3 trillion in trading volume year-to-date in 2025, with around 99% of protocol fees returned to the ecosystem via token buybacks and burns.
"Hyperliquid's economics are fundamentally different from traditional DEXs - 99% of protocol fees are returned to the ecosystem through token buybacks and burns, creating a value accrual mechanism that directly benefits HYPE token holders rather than venture capital investors."
| Hyperliquid Metric | 2025 YTD Performance | Industry Comparison | Growth Projection |
|---|---|---|---|
| Trading Volume | $2.9 trillion | #1 DeFi Perpetuals DEX | +185% YoY |
| Protocol Fees | $874 million | 98.9% to ecosystem | $5B target |
| Token Buybacks | $865 million | 99% of fees | Accelerating |
| HYPE Token Burn | 4.2 million HYPE | Deflationary pressure | Increasing quarterly |
💰 HYPE Token Economics - Fee Distribution
📊 Fee Flow Breakdown:
• Buybacks & Burns : 99% of protocol fees
• Development Reserve : 0.5%
• Protocol Insurance : 0.5%
Part 3: Related Entity Coverage - PURR and HYPD
Cantor Fitzgerald initiated "Overweight" coverage on two digital asset treasury companies associated with Hyperliquid: Hyperliquid Strategies (PURR) with a $5 price target, and Hyperion DeFi (HYPD) with a $4 target, viewing their current discounts to net asset value as entry opportunities for traditional investors.
Hyperliquid Strategies (PURR)
- Current Price: $3.42 (as of Dec 16)
- Price Target: $5.00 (+46% upside)
- Discount to NAV: 21.5%
- Assets Under Management: $950M
- Primary Holdings: HYPE tokens, DeFi yield strategies
Hyperion DeFi (HYPD)
- Current Price: $2.89 (as of Dec 16)
- Price Target: $4.00 (+38% upside)
- Discount to NAV: 18.7%
- Assets Under Management: $720M
- Primary Holdings: DeFi LP positions, protocol tokens
Part 4: Broader Market Implications and Risks
Cantor's comprehensive analysis represents the most detailed Wall Street valuation model ever applied to a decentralized exchange. The report's methodology could establish a new framework for evaluating DeFi infrastructure projects, potentially attracting additional institutional capital to the space.
📊 Valuation Model Components
Source: Cantor Fitzgerald Institutional Research Methodology
Key risk factors identified in the report:
- Regulatory uncertainty: Potential SEC or CFTC actions on DeFi derivatives
- Competitive landscape: Emergence of alternative perpetual DEX protocols
- Technology risk: Smart contract vulnerabilities or scaling limitations
- Market risk: Correlation with broader crypto market downturns
FAQ: Understanding Cantor's Hyperliquid Analysis
Q: Why a 50x earnings multiple for Hyperliquid?
A: Cantor applies an infrastructure premium comparable to traditional exchange operators, viewing Hyperliquid as critical trading infrastructure rather than speculative DeFi, justifying higher multiples than typical software companies.
Q: How realistic is the $5 billion revenue target?
A: Based on current growth rates and market share projections, the model assumes Hyperliquid captures approximately 15-20% of the global crypto perpetuals market within 10 years, a plausible scenario given current trajectory.
Q: What's the significance of covering PURR and HYPD?
A: By initiating coverage on these entities, Cantor provides traditional equity investors with regulated vehicles to gain exposure to Hyperliquid's ecosystem, bridging the gap between DeFi and traditional finance.
Q: Could this model apply to other DeFi protocols?
A: Yes - Cantor's infrastructure valuation framework could establish a precedent for evaluating other decentralized exchanges and DeFi protocols with sustainable fee generation and clear value accrual mechanisms.
About the Author: Isabella Rossi
Isabella Rossi specializes in cryptocurrency market analysis and on-chain metrics. With a focus on interpreting complex market data and identifying structural shifts, she provides data-driven insights into Bitcoin market dynamics, liquidity patterns, and exchange flows.
📈 Volume Growth Trajectory
Compound Annual Growth Rate (CAGR): ~68%
🎯 Valuation Scenarios
• 5% CEX market share
• 30x multiple
• 15% CEX market share
• 50x multiple
• 25% CEX market share
• 60x multiple
Sources & References
- Cantor Fitzgerald Research Report - "Hyperliquid: Infrastructure for Digital Asset Trading" (December 2025)
- Hyperliquid Protocol Analytics Dashboard (Year-to-Date 2025)
- CoinMarketCap DeFi Derivatives Volume Data
- Genesis Trading Derivatives Market Analysis
- DeFiLlama Protocol Revenue Tracking
Disclaimer: This content is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The cryptocurrency market is highly volatile and past performance does not guarantee future results. Cantor Fitzgerald's projections are analyst opinions and should not be considered guarantees of future performance. Always conduct your own thorough research and consider consulting with qualified financial professionals before making investment decisions.