HIP-3 on growth mode is like "mainnet launch" in 2021. One of the main bear takes on $HYPE on this app was that the margin was already so high that it couldn't grow more, and would only lead to more competition. However, HIP-3 markets are highly growing on growth mode with very reduced fees. This contradicts the bear case that many people claimed and, instead, creates a growth story. > What happens when Growth Mode ends? This leads to revenue projections that will rerate its valuation, inducing fomo, as the value-capture of Hyperliquid on TradFi markets has no ceiling relative to where it stands now. And if they replicate in TradFi their position in crypto — where they are the absolute winner with immense margins — the pie could get so big that its current P/E ratio makes it incredibly undervalued, and should put it closer to Robinhood or Coinbase under the same revenue generation. $HYPE has been a defensive asset during this crypto winter, showing resilience of revenue and constant buybacks. But HIP-3 with Growth Mode makes it again a growth story, much more appealing than ever before. No critic can now argue that their margins are close to perfection. All the opposite — we are far from that.

The similarity with "mainnet launch" in 2021 is the growth story and fomo-induced behavior. Not the inevitable bust. The difference is that a blockchain with smart contracts in 2021 didn't have anything to show up for and could only spend money to try get some activity, therefore not living up to the expectations and drastically dropping to reality. This similarity stops there. We have a case of clear demand and a proven ecosystem of real users. So it doesn't work on the way down.

I do think that it is best to keep Growth Mode activated for a while. For the business, this means further and faster growth vs. TradFi and a bigger chance to get market share. The faster you grow, while organically, the more chances you have to stay. For the token, the narrative and consequential growth story will pump it regardless. The revenue can remain the same while P/E increases comparable to Robinhood or Coinbase and this can give $HYPE another 5x without removing Growth Mode, while still growing. It's in everyone's interest to keep Growth Mode activated for a long time.