HYPE gained double digits on Monday after the team behind HyperCore, the core infrastructure powering Hyperliquid’s layer-1 network, said it will support the HIP-4 proposal to expand into prediction markets.
The integration would allow fully collateralized contracts on Hyperliquid, the largest decentralized perpetual futures crypto platform, enabling traders to wager on political elections, sports and other markets.
In an X post on Monday, Hyperliquid said the support was driven by “extensive user demand” for prediction markets and bounded options-like instruments, while adding that HIP-4 could allow other novel applications to be built on Hyperliquid.
HIP-4 outcomes would function like a betting slip with a capped payout, settling within a fixed range without leverage, liquidations, or margin calls.
Hyperliquid said the outcomes trading feature is a “work in progress” and is currently only being tested on testnet. The canonical markets would be denominated in Hyperliquid’s native stablecoin, Hyperliquid USDH (USDH).
The news sent Hyperliquid (HYPE) up 19.5% to $37.14, adding to its 46.9% price rally over the last month while the broader crypto market has pulled back, CoinGecko data shows.
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The integration would combine two of crypto’s hottest use cases over the last 24 months, with both onchain perps and blockchain-powered prediction markets now consistently seeing hundreds of millions of dollars in trading volume each day.
Perps trading volume still over $200 billion weekly
Perps trading volume has cooled off since early November after hitting a record $341.7 billion between Nov. 3 and Nov. 9, though trading volumes have remained above $200 billion each week over the past four completed weeks, according to DeFiLlama data.
The weekly trading volumes seen over the past month are still three to four times larger than those seen in January 2025.
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