HYPE jumped more than 20% on Monday after the team behind HyperCore, the infrastructure powering Hyperliquid’s layer-1 network, confirmed its support for the HIP-4 proposal, which aims to expand into prediction markets.
If implemented, the integration would enable fully collateralized contracts on Hyperliquid, the largest decentralized perpetual futures platform in crypto, allowing traders to bet on political elections, sports, and other events.
In a post on X, Hyperliquid said the move responds to “extensive user demand” for prediction markets and bounded options-like instruments, noting that HIP-4 could also pave the way for other innovative applications on the platform.
Under HIP-4, outcomes would operate like a capped betting slip, settling within a fixed range without leverage, liquidations, or margin calls.
Hyperliquid noted that the outcomes trading feature is still a “work in progress” and is currently being tested on the testnet. The primary markets would be denominated in Hyperliquid’s native stablecoin, Hyperliquid USDH (USDH).
The announcement sent Hyperliquid up 19.5% to $37.14, adding to a 46.9% rally over the past month, even as the broader crypto market pulled back, according to CoinGecko.
The planned integration would combine two of crypto’s hottest trends over the past two years: on-chain perpetuals and blockchain-based prediction markets, both of which now regularly see hundreds of millions of dollars in daily trading volume.
Perpetuals trading has remained strong, exceeding $200 billion weekly, despite cooling from the record $341.7 billion hit between November 3 and 9. Over the past four completed weeks, trading volumes have consistently stayed above $200 billion, according to DeFiLlama.
The weekly trading volumes observed over the past month remain three to four times higher than those in January 2025.
