Alright, let's talk Hyperliquid. Everyone's eyeing that $38-$59 valuation, and while on the surface it seems reasonable, I'm here to tell you it's selling the project short. Way short. And we’re not just building a DEX – we’re building a full, vertically integrated on-chain trading ecosystem. This ecosystem has its own Layer 1, HyperL1, and it’s a game changer.

Full Stack Is The Future

Think about it. Here’s how it works Today, the majority of other DEXs are deployed on top of these existing chains, subject to their limitations and costly transaction fees. Hyperliquid? They're building their own highway. They control the rules of the road. That’s a huge, game changing strategic advantage that the market is totally failing to value.

This is not only about faster speeds and lower latency — though those metrics are certainly important. It's about owning your destiny. It's about not being at the mercy of Ethereum's gas fees or Solana's occasional hiccups. It’s not about the fees, it’s about proprietary value that would otherwise leak out to other chains.

Consider Solana. Love it or hate it, its ecosystem thrived because it offered something different: speed and low fees. HyperL1 provides that and is purpose-built for trading. This isn’t just your typical bozo general-purpose L1, this is a cuckoo clock, precision engineered revenue extractor liquidity vacuum. That's where the hidden potential lies.

Questioning The Core Assumptions

Let's dive into the SOTP valuation. Admittedly, it’s a good place to start, but the assumptions are way, way too generous. A 15x revenue multiple for a perpetuals exchange is adorable. We’re referring to a world where innovation and change are occurring at warp speed. Compare that to what you see on traditional exchanges or even high growth SaaS exchanges. A 15x multiple sounds more like valuing Amazon as a bookstore.

And what about the spot volume ratio? 15-30% of perps volume? Seriously? Once Hyperliquid adds depth to their spot offerings, that number is going to explode. Consider all the possibilities for cross-margining, symbiotic arbitrage opportunities, and just the general convenience factor of having it all under one roof. That synergy is worth a premium.

Their selection of peer L1 chains to compare against is additionally puzzling. Benchmarking against other general-purpose, non-innovative Tier 2s completely defeats the purpose. Hyperliquid isn't trying to be another Ethereum competitor; it's building a specialized trading infrastructure. It’s closer to a Bloomberg Terminal for the on-chain universe. You can't compare apples to oranges.

HyperL1: Scarcity & Future Revenue

Here's where the awe factor comes in. L1 chains are scarce. They’re the parallel and much more important foundational layer of the entire crypto ecosystem. Hyperliquid has just created one engineered from the ground up—trading. That's incredibly valuable.

Think about the future revenue streams: transaction fees, staking rewards, potential validator services. As Hyperliquid continues to acquire more users, these revenue streams will further compound, establishing a robust flywheel effect. Now picture a scenario where Hyperliquid captures even a small percentage of the global derivatives market. The revenue potential is staggering.

Let's be realistic, there are risks. Adoption is not a sure thing, regulatory headwinds may arise, and the competition is intense. The downside risks are far outweighed by the upside potential.

From a Nordic perspective, this is a great example of the region’s talent for technophile technocracy. Just as Spotify upended the music industry forever, so too is Hyperliquid ready to shatter the status quo of traditional exchanges. It’s an audacious play, to be sure, to build out a full-stack solution, but the upside is huge.

Overall though, the $59 valuation is a pretty solid baseline to begin with. That only tells a small part of the story of the strategic importance of Hyperliquid’s Hidden L1 Play. I think Hyperliquid is very underrated. Its long-term growth trajectory might catch even the most advanced crypto investors off guard. Don't just dismiss this as another DEX; look closer, and you'll see the potential for something truly revolutionary.