HYPE surged sharply after the Hyperliquid team signaled support for expanding its ecosystem beyond perpetual futures trading. The move highlights growing interest in onchain prediction markets and helped the token outperform a broader crypto market that has recently struggled for momentum.
Hyperliquid Backs HIP-4 Proposal
The rally followed confirmation that HyperCore, the infrastructure layer underpinning Hyperliquid’s layer-1 network, plans to support the HIP-4 proposal. The initiative would introduce outcome-based contracts that allow users to trade on events such as political elections, sporting results, and other real-world outcomes.
Unlike traditional derivatives, the proposed prediction market products would be fully collateralized. Trades would settle within predefined payout ranges and would not involve leverage, margin calls, or liquidations. Hyperliquid described the design as similar to bounded options, aimed at reducing systemic risk while expanding use cases on the network.
Testing Phase and Market Structure
The outcome trading feature is currently under development and is being tested on Hyperliquid’s testnet. If deployed, the markets would be denominated in the protocol’s native stablecoin, USDH, and could enable additional applications to be built on top of the platform.
Following the announcement, HYPE climbed nearly 20% to around $37, extending a monthly gain of close to 47%. The move comes as decentralized perpetual futures platforms continue to post strong activity, with weekly trading volumes consistently exceeding $200 billion, underscoring sustained demand for onchain derivatives.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.