Qiao Wang argues that 20x P/E ratios are overvalued for DEX trading products due to zero switching costs and unsustainable competitive dynamics.
DeFi & Yields ·
Qiao Wang contended on September 15, 2026 that a 20x price-to-earnings ratio remains expensive for decentralized exchange trading products, pointing to Hyperliquid as an example of the category's challenges. He assessed that even a 5x multiple is elevated, arguing that near-zero switching costs on-chain prevent trading platforms from sustaining earnings durably. Valuations for such products should reflect the sustainability horizon of profits rather than extrapolating current earnings indefinitely, according to his view.