Key Takeaways
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Arthur Hayes backs HYPE over crypto’s biggest names.
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HYPE’s rally is being driven by strong fundamentals and a short squeeze.
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Analysts have explored whether Hyperliquid can challenge Ethereum.
BitMEX co-founder Arthur Hayes has doubled down on his bullish outlook for Hyperliquid’s native token HYPE, wagering $100,000 that it will outperform Solana in USD returns by the end of the year.
The wager with Multicoin Capital co-founder Kyle Samani comes as HYPE continues its remarkable rally, surging to a new all-time high above $73 and becoming one of the best-performing major cryptos this year.
The token’s rapid climb has fueled growing discussion about Hyperliquid’s long-term potential, leading some analysts to explore whether it could emerge as a serious challenger to Ethereum’s dominance.
Arthur Hayes’ $100,000 Bet on HYPE
Hayes doubled down on his bullish outlook for Hyperliquid this week by proposing a charitable wager with Multicoin Capital co-founder Kyle Samani.
“Hey @KyleSamani, maybe you were busy last time I pinged you. Let’s do a gentleman’s charitable bet,” he wrote on X on Monday.
“I put $100k on the line to a charity of your choice that $HYPE outperforms any other current top ten crypto in USD terms from now until year’s end. Who is your champion?”
Samani quickly accepted the challenge and chose Solana as his contender.
The bet has doubled down on Hayes’ unwavering ambition for HYPE, putting his money that it would outperform a group that includes Bitcoin, Ethereum and XRP.
Samani’s Skepticism Toward Hyperliquid
The wager also comes after a longstanding disagreement between Hayes and Samani over Hyperliquid’s prospects.
Before accepting Hayes’ challenge, Samani had been one of Hyperliquid’s most vocal critics.
In February, the famed founder described the project as being “everything wrong with crypto.”
Samani argued that the platform’s closed-source architecture undermine the industry’s ethos of decentralization.
He also accused the protocol of facilitating illicit activity and criticized founder Jeff Yan’s decision to relocate outside the US.
The comments sparked pushback from the industry.
Supporters pointed to the platform’s rapid growth, rising revenues and increasing market share in decentralized derivatives trading.
Despite his criticism, on-chain sleuths found linked wallets associated with Multicoin Capital purchases of more than $40 million worth of HYPE.
Samani remains one of the crypto industry’s most prominent advocates for Solana, explaining his decision to back SOL against HYPE in Hayes’ $100,000 wager.
Hayes Has Been One Of HYPE’s Most Vocal Bulls
The wager is the latest example of Hayes’ long-running bullish stance on Hyperliquid.
In March, Hayes predicted HYPE could reach $150 by August 2026 — five times more than it was worth when he wrote it.
Hayes said that markets tied to commodities, equity indexes, and prediction markets could further accelerate demand for the token.
“Precious metals, AI stonks, and oil are what the plebes desire to trade,” Hayes said.
“And now, using perps, anyone from around the world can trade 24/7 with higher leverage than TradFi exchanges offer.”
His optimism has been echoed by other industry participants.
Bitwise Chief Investment Officer Matt Hougan recently described Hyperliquid as “one of the most important crypto projects to emerge in years.”
Hougan argued investors are undervaluing the platform by viewing it solely as a crypto derivatives exchange.
“… it should be valued as a global super-app covering all assets: crypto, equities, commodities, FX, prediction markets, structured products, and more,” Hougan wrote in a blog post.
He also highlighted the protocol’s token economics, noting that approximately 99% of trading fees generated by Hyperliquid are used to repurchase HYPE tokens.
According to Hougan, the gap between Hyperliquid’s revenue growth and market valuation is one reason the token remains underappreciated by investors.
Why HYPE Is Rallying
Intelligence firm Santiment reported that HYPE’s social dominance recently climbed to its highest level of 2026.
The firm also pointed to a significant short squeeze that helped accelerate the rally.
“A major spike in negative funding” showed traders were heavily shorting the token in anticipation of a pullback, Santiment said.
“Instead, HYPE continued climbing, creating the conditions for a classic short squeeze.”
The firm that a large group of bearish traders were forced to buy back their positions automatically, which added more vigor to the rally.
Santiment further noted that open interest in HYPE futures remained elevated above $1.92 billion during the move higher.
Analysts have also pointed to Hyperliquid’s growing role in decentralized derivatives markets.
ARK Invest researcher Lorenzo Valente said the platform’s custom-built infrastructure has helped it capture significant market share.
“This is a product that needs very low latency… and the reality for now, even on Solana… the product was just not there from a trader’s perspective.”
Valente added that Hyperliquid now processes nearly $3 trillion in annualized trading volume. He added that it likely controls around 80% of the decentralized perpetual futures market.
Could Hyperliquid Ever Overtake Ethereum?
While enthusiasm around Hyperliquid has fueled speculation that it could eventually rival Ethereum, not all analysts are convinced.
In a recent Motley Fool analysis, contributor Alex Carchidi examined whether Hyperliquid could become “the next Ethereum.”
“Hyperliquid’s grip on the decentralized perpetuals market is hard to overstate,” Carchidi wrote.
He noted the protocol controlled more than 70% of decentralized perpetual futures open interest as of April 2026.
However, he argued Ethereum retained significant advantages.
“But becoming the next Ethereum is a big task,” Carchidi wrote.
“That network grew to be plenty big, but the more important factor is that it invented the very category it grew into.”
Although he acknowledged that “on paper, Hyperliquid really could be the next Ethereum,” he cautioned that Ethereum expanded during a period with little meaningful competition.
Hyperliquid operates in a much more crowded market.
“The catch here is that Hyperliquid isn’t free to expand as Ethereum was,” he wrote.
“What it probably won’t do is replicate Ethereum’s path exactly, because there is no uncharted territory left.”
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