Arthur Hayes Says Hyperliquid’s HYPE Token May Trail Ether (ETH) and Zcash (ZEC)

BitMEX founder Arthur Hayes says Hyperliquid’s HYPE token faces a weaker investment case as competition among decentralized perpetual futures platforms intensifies, even though he sees real demand for their products. His concern is whether HYPE can keep pace with Ether (ETH) and Zcash (ZEC), rather than whether the token must lose value outright.

Hayes said Oct. 16 that Hyperliquid had shown real demand for on-chain perpetual futures. He also described the sector as a consensus trade, with competing platforms offering increasingly similar products. In his view, those conditions have reduced HYPE’s risk-reward appeal. His assessment separates demand for a trading product from the question of whether its associated token is attractive to hold.

His comparison is relative: HYPE may not decline in dollar terms, but it could still perform significantly worse than ETH or ZEC. A token can avoid an outright loss and still deliver weaker performance than alternatives. That makes Hayes’ concern a comparison among assets, not a prediction that HYPE necessarily falls.

Hayes also separated his use of Hyperliquid’s products from his willingness to invest in HYPE. He recognized the team’s achievements and said he remained willing to use its products as a consumer, while saying he did not want to participate as an investor. His stance leaves room for product use while keeping a less favorable view of the token’s investment appeal.

That distinction is central to his view: demand for Hyperliquid’s futures markets does not, by itself, settle the investment case for HYPE. Hayes ties his caution to more intense competition and increasingly similar offerings across the sector. He can see value in using Hyperliquid’s products while judging the token’s risk-reward profile less favorably.

The comments follow an earlier HYPE price target from Hayes. He had set a $150 target for the token, then announced days later that he had sold all his HYPE and NEAR holdings. The earlier target and subsequent sale provide context for his current distinction between seeing demand for a product and wanting to hold its token.