HYPE Jumps Almost 20% as Hyperliquid Announces Support for Prediction‑Market Protocol (HIP‑4)
The native token of the Hyperliquid decentralized perpetual futures platform rallied to $37.14 on Monday, spurred by the team behind its underlying HyperCore infrastructure confirming plans to add fully collateralised prediction‑market contracts.
What happened
- HyperCore, the core infrastructure that powers Hyperliquid’s L1 network, disclosed its intention to back the HIP‑4 proposal, which aims to broaden the protocol’s capabilities beyond perpetual futures.
- The new feature would let users trade “outcome” contracts that function like a traditional betting slip: payouts are capped, settlements occur within a predefined range, and no leverage, liquidations, or margin calls are involved.
- At present the outcome‑trading module is being trialled on Hyperliquid’s testnet and will be denominated in the platform’s stablecoin, Hyperliquid USDH (USDH).
- Hyperliquid highlighted “strong community demand” for prediction markets and options‑style products, suggesting that HIP‑4 could also serve as a foundation for additional innovative applications.
The announcement sent HYPE, Hyperliquid’s native token, up approximately 19.5 % to $37.14, extending a 46.9 % price rally over the past month while the broader crypto market has been largely stagnant, according to CoinGecko data.
Context: Perpetual Futures Remain a Core Revenue Driver
Hyperliquid is currently the largest decentralized perpetual futures exchange, handling weekly trading volumes above $200 billion for the fourth consecutive week, as reported by DeFiLlama. Although volumes dipped from a November record of $341.7 billion, they remain three to four times higher than levels seen in early 2025.
The move to integrate prediction markets dovetails with a broader trend: on‑chain perps and blockchain‑based betting platforms have each been generating hundreds of millions of dollars in daily volume over the last two years. By offering both products under a single protocol, Hyperliquid hopes to capture cross‑segment traders and deepen liquidity.
Analyst Takeaways
| Takeaway | Implication |
|---|---|
| Diversification of product suite | Adding prediction‑market contracts gives traders a non‑leveraged, risk‑controlled way to speculate on political, sporting, and other real‑world events, potentially attracting users who shy away from high‑leverage perpetuals. |
| Revenue upside | Outcome contracts settle without liquidations, which could reduce the need for aggressive fee structures tied to margin calls, while still generating fee income from trade execution and settlement. |
| User‑driven development | Hyperliquid’s reference to “extensive user demand” signals a shift toward community‑guided roadmap decisions, a factor that may improve platform adoption and retention. |
| Risk considerations | While fully collateralised contracts mitigate liquidation risk, exposure to regulatory scrutiny around betting‑type products remains a concern, especially in jurisdictions with strict gambling laws. |
| Market perception | The near‑20 % price surge for HYPE reflects investor optimism that the protocol’s expansion will unlock new liquidity streams, but the rally also raises expectations for a timely testnet rollout and main‑net launch. |
Outlook
If HIP‑4 passes governance and transitions from testnet to production, Hyperliquid could become one of the few DeFi platforms offering both high‑frequency leveraged perps and structured prediction‑market instruments. Such a hybrid offering may deepen the platform’s moat against competitors that focus exclusively on one product class.
However, the timing of the rollout will be critical. Delays or unforeseen regulatory hurdles could temper the bullish sentiment that currently fuels HYPE’s price. Market participants should monitor:
- Governance voting results on the HIP‑4 proposal.
- Testnet performance metrics – including contract latency, settlement accuracy, and user onboarding figures.
- Regulatory developments related to on‑chain betting and prediction markets across major jurisdictions.
Key Points
- Hyperliquid’s core infrastructure team confirmed support for HIP‑4, enabling fully collateralised prediction‑market contracts.
- HYPE token rose roughly 20 % to $37.14, extending a 46.9 % rally over the last month.
- Outcome contracts settle without leverage, offering capped payouts and eliminating liquidations.
- Weekly perpetual‑futures volume on Hyperliquid remains above $200 billion, underscoring a robust liquidity base.
- The integration could attract a broader trader base, but regulatory risk and execution timelines remain pivotal factors.
The story is developing; further updates will follow as the HIP‑4 proposal advances through governance and testnet validation.
Source: https://cointelegraph.com/news/hyperliquid-supports-predictions-market-proposal?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
