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Hi all, happy Tuesday. The coins are down, but Hyperliquid’s fundamentals are up and to the right. In today’s newsletter, we unpack recent ETF flows, the fastest horse amongst DATCOs, and Hyperliquid’s continued resilience in growing market share.

Monday welcomed a rough start to the week with price action broadly red across the board. BTC broke its range lows, trading down to $109,350, the lowest level in over a month. ETH, however, maintains its relative strength, with both the ETH/BTC ratio and ETH dominance only one day off of recent highs.

Despite selling pressure in the majors, ETF flows were positive for Monday, with BTC ETFs adding $219 million and ETH ETFs adding $443 million.

Within DATCOs, BMNR appears to be the fastest horse in the race, now holding 1.42% of the ETH supply. It’s over double that of second-place SBET, which accounts for 0.62% of the ETH supply.

Amongst DATCOs, the appetite for ETH is far outpacing that of other assets like BTC or SOL, with ETH DATCOs acquiring increasingly material shares of the supply at a higher velocity than the alternatives. These big buyers have no doubt buoyed price action and ETH’s outperformance in recent weeks, now holding 2.57% of the ETH supply. However, recent announcements from DFDV, STSS and Bloomberg signal growing capitalization in SOL treasuries, which could translate into increases in this cohort’s holdings of the SOL supply in coming weeks.

Across the sector, the premiums to NAV are in a slight but persistent downtrend, suggesting that the fervor of recent weeks may be slowly dissipating. A shrinking mNAV makes ATM share offerings less accretive, in turn decelerating the growth in assets per share. While mNAVs remain positive, the metric should be closely monitored for gaining signal on the forward buying pressure these institutions may, or may not, provide.

— Luke 

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Is HYPE still cheap?

Hyperliquid's spot volumes have seen a significant rise, particularly when compared to CEXs. Over the weekend, an unknown entity deposited and sold ~22.1k BTC to rotate into ~555k ETH, valued at over $2.4 billion. This surge in spot volumes positioned Hyperliquid as the second-highest exchange by BTC spot trading volume on Aug. 24, with a 12% market share, behind only Binance (38%). This is a substantial increase from Hyperliquid’s 30-day average daily market share of ~1%. 

Stepping back, we can compare Hyperliquid's monthly spot trading volumes against various CEXs (including all assets, not just BTC). We observe a consistent rise in Hyperliquid's share of spot volumes year to date. This month, Hyperliquid accounted for 38% of Kraken's spot volumes, 16% of Coinbase, 15% of OKX, 14% of Bybit, and 2.4% of Binance. Although all figures represent a significant rise from the beginning of the year, they also show that Hyperliquid still has a long way to go to flip some of the largest CEXs.

Regarding perpetual futures volumes, Hyperliquid has been growing significantly faster than its centralized counterparts. The chart below shows that the ratio between Hyperliquid's perp volumes and that of the three largest CEXs has increased by more than 6x over the past year. Hyperliquid's monthly perps volumes now represent almost 14% of Binance's futures volumes, up from just 2.2% a year ago.

Growth in volumes is impressive. But what about revenue, especially as it compares to other chains? Hyperliquid (HyperCore + HyperEVM) has registered about $28 million in weekly revenue for two consecutive weeks, and $98 million in the past 30 days. These figures translate to an annualized revenue run rate of $1.2-$1.4 billion. Below, we see that Hyperliquid has been the top chain by weekly revenue in the last two weeks, achieving a new all-time high market share of 36%. 

The chart below shows that HYPE is the cheapest asset among the leading chains on a price-to-sales basis, with its P/S of 12 representing a 90% discount to the cohort. Even on an FDV/sales basis, HYPE is also the cheapest L1. While we can do mental gymnastics all day long about whether L1s merit a premium or not, or if they should be valued based on revenue or not, the fact remains that HYPE today looks more attractively priced than all other L1s, based purely on this metric.

Ask yourself, what happens if the so-called "L1 premiums" wear off? What happens when buying pressure from DATCOs subsides? Is it the case that HYPE is undervalued, or simply that other L1s have incredibly elevated valuations that are becoming increasingly harder to justify? We can't know for sure, but these are certainly questions worth thinking about.

— Carlos

1. Prop AMMs, MEV and the realities of Solana's roadmap — Validated Pod

Austin Federa is joined by team members from Temporal and Anza to offer a unique perspective on Solana's evolution, contrasting practical building with core protocol development. The conversation delves into the real-world challenges of building on Solana, from physical infrastructure failures to the ever-present reality of MEV. Temporal highlights how transparency tools have exposed sandwich attacks and slot-lagging, forcing the ecosystem to adapt. Looking forward, they debate the path to a more robust market structure, discussing potential solutions like multiple concurrent leaders and increased compute power. 

2. The state of crypto leverage — Q2 2025

Zach Pokorny from Galaxy Research tracks the trends in onchain leverage across crypto-collateralized lending on DeFi and CeFi venues, publicly-traded DATCOs and the crypto futures markets. The report contains interesting findings, particularly as it regards CeFi data, where Galaxy Research tracked $18 billion of outstanding loans as of June 30, 2025. Within this sector, Tether remained the largest crypto lender based on quarterly attestations, with $10.4 billion of open loans. 

3. Global stock exchanges call for crackdown on tokenized stocks

This Blockworks article explains how a coalition of the world’s leading stock exchanges, via the World Federation of Exchanges (WFE), has urged regulators to clamp down on “tokenized stocks,” warning these blockchain-based assets mimic real shares without granting legal ownership or shareholder rights. The WFE cautions such offerings may mislead investors, threaten market integrity and expose the companies whose shares are being imitated to reputational risks. While proponents highlight benefits like lower trading costs and 24/7 access, regulators emphasize that securities laws still apply.

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