Arthur Hayes Expects Hyperliquid To Flip Solana In Current Bull Run

BitMEX co-founder Arthur Hayes remains bullish on the future of Hyperliquid (HYPE). He even believes that the token may flip Solana (SOL) in market capitalization until the end of the current crypto bull cycle.

Arthur Hayes Shares New Hyperliquid Prediction

Hayes responded to rising fears of a long-term downturn in the market in a post on X. He shared an image of the crypto rankings and wrote: “Are we dreaming big enough? Looking at this list of mostly dogshit coins, I think $HYPE should at a minimum overtake $SOL before this bull run is over.”

The call is interesting due to the amount of catch-up that Hyperliquid would have to make. Arthur Hayes shared the market capitalization of the respective top cryptocurrencies. In his snapshot, Solana holds a cap of around $47.73 billion and Hyperliquid boasts a valuation of $15.04 billion.

Hence, his prediction to come true would require HYPE to increase by approximately 3.17x to reach the current valuation of Solana. If the HYPE price is increasing by 3.17x, then at the current price of $67.69, the Hyperliquid token would surge to approximately $215.

However, this scenario would be true if Solana is trading in the same range as it has done in the recent past. In case SOL price rallies, Hyperliquid would have to register further gains to surpass Solana in the top crypto list. Thus, Arthur Hayes is now calling for the token’s valuation to be considerably higher than his previous $150 forecast.

Hayes Rejects Bear Market Narrative

Arthur Hayes leveraged the post to counter allegations from traders that the crypto market is already in a bear run. Hayes responded to one user who said they were in a “bear market” by saying that his altcoin portfolio didn’t agree.

He said that he believes the bull cycle is still intact despite the volatility of the major cryptocurrencies because of the strong performance of select risk assets. For context,

Arthur Hayes has been holding over 26,000 HYPE tokens in his portfolio so far. He has doubled down on Hyperliquid as one of his most confident investments. Along similar lines, Grayscale is also buying HYPE.

His long-term thesis is also related to regulatory developments and ongoing digital asset liquidity growth. In the past, Arthur Hayes had estimated that the crypto bull market would continue through 2028. He attributed the potential surge to more widespread adoption of stablecoins and more volume in crypto trading.

If Arthur Hayes’ forecast is to become reality, Hyperliquid would have to overcome a market-cap difference of over $32 billion from Solana. With the current numbers, it would need to rally over 200% from today to the point where HYPE is in the $200 range.

After his statement, the HYPE price surged, 2.52% to $68.89 at press time on Sunday, May 31.

Hyperliquid Buybacks Amid Revenue Surge

Meanwhile, Hyperliquid’s tokenomics continue to attract attention from both retail and institutional investors. Consistent demand for the token has been created as the protocol has purchased more than $1.16 billion worth of HYPE from the open market.

Also, Hyperliquid has posted solid financial results. Hyperliquid Strategies recently announced its quarterly earnings of around $152.5 million.

Moreover, Arthur Hayes is by no means the sole place with a bullish tone. Recently, Bitwise CIO Matt Hougan called HYPE a “generational asset.” He said that investors should consider the opportunity in the context of the $600 trillion global financial market and not the size of the crypto market.

Hougan also pointed out the need for Bitwise’s BHYP ETF, which he says is the best single-asset crypto ETP launch since Bitcoin. The fund has taken in almost $60 million since mid-May. Furthermore, Grayscale has updated its S-1 filing for the Hyperliquid staking ETF. Experts believe this move could speed up regulatory approval.