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Apollo Crypto positions Hyperliquid as the largest altcoin, with head of research Pratik Kala asserting that the protocol stands out not only because of its product market fit, but also because its token design and expanding market structure offer traders something that few crypto exchanges currently offer: usable revenue-linked infrastructure.
In a comment shared via X, Kala described Hyperliquid in unusually direct terms. “Hyperliquid is the largest altcoin position in our fund. Why? Because it's phenomenal. The product works,” he said. For Apollo, the case appears to be based on two pillars: the traction of exchanges as trading venues, and Kala, a token model positioned as cleaner and more transparent than many of the industry's recent experiments.
He contrasted Hyperliquid's buyback structure with the more complex token systems that defined early market cycles. “Tokenomics is new. We use 97 to 99% of all revenue, depending on how you calculate it, to buy back tokens in a very transparent way. Governance is a big no-no. No, you know, tokens are eating into other tokens, creating dynamic inflation, burn-out, minting, which has frankly destroyed a lot of people's capital and brain power over the last few years.”
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This framework is central to Apollo's paper. Kala's argument is not just that Hyperliquid has momentum, but that it has combined a working product with a token generation model that traders can actually follow. In a sector where valuation stories often hinge on future governance and ambiguous utility, he presented HyperLiquid as relatively simple. Trading activity generates revenue, which in turn leads to token buybacks.
He also pointed to hiring trends. Kara said that while “a lot of trading volume is flowing there”, the platform is being increasingly used by market makers and funds. He claimed that Hyperliquid is superior in “many ways,” particularly in the way it handles initial public offerings, pre-markets, and other product enhancements.
However, a key part of the bullish case is HIP-3, which Kara said is already opening up opportunities that can be traded outside of normal cryptocurrency schedules. He described weekend trading related to news that OpenAI had secured a contract after Anthropic refused to allow its AI technology to be used by the Department of Defense. With development suspended while traditional markets were closed, most market participants were effectively sidelined, Kara said.
“Personally, I made 50%. How? Because both HIP3, OpenAI and Anthropic were trading on HIP3,” he said. “Liquidity isn't great, but OpenAI was up 50% over the weekend. Anthropic was static. We could have predicted that we could have done a spread trade where we could short Anthropic and open long AI. If you do that with HIP3, you can make money and generate alpha.”
This example illustrates the broader point that Apollo is making. HIP-3 is not being pitched as just another vertical product, but as a venue where traders can express event-driven views on assets that are normally inaccessible during breaking news. Kara said the market now includes weekend trading in listed stocks and commodities such as oil, gold and silver, as well as private market trading.
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He provided one data point that shows early traction. During the recent silver mania, HIP-3 briefly accounted for 1% to 2% of the world's silver volume, even though it was launched just a month to six weeks ago. For Kara, it's not a retail novelty, but rather signals serious engagement by hedge funds, sophisticated investors, and active portfolio managers seeking around-the-clock execution.
He added that HIP-3's proceeds will be split 50/50 between the deployment market and Hyperliquid, with Hyperliquid's share fed back into HYPE's buybacks. From Apollo's perspective, this would strengthen the flywheel rather than dilute it.
Kara also warned them about what would happen next. He said HIP-4, which focuses on prediction markets and options, could further propel the platform, while regulatory changes in the US could eventually pave the way for a KYC-compliant version locally. He acknowledged that competition exists, including from rival platforms such as Lighter. But in Apollo's view, Hyperliquid has already accomplished something more difficult than launching a new exchange. They are gaining traders' attention, liquidity, and, increasingly, loyalty.
At the time of writing, HYPE's price was $30.485.
Featured image created with DALL.E, chart on TradingView.com
