HYPE posted double-digit gains on Monday after the team behind HyperCore, the core infrastructure supporting Hyperliquid’s layer-1 network, announced its backing of the HIP-4 proposal, which aims to extend the platform into prediction markets. If implemented, the proposal would introduce fully collateralized contracts on Hyperliquid, the largest decentralized perpetual futures platform, allowing users to place wagers on outcomes such as political elections, sporting events and other real-world markets.

In a post on X, Hyperliquid said the decision followed “extensive user demand” for prediction markets and bounded, options-style instruments, adding that HIP-4 could open the door for additional novel applications to be developed on the network. Under the proposal, outcomes would function similarly to a betting slip with a capped payoff, settling within a predefined range and operating without leverage, liquidations or margin calls.

Feature still in testing as market reacts

Hyperliquid noted that the outcomes trading functionality remains a “work in progress” and is currently limited to testnet experimentation. The core markets would be denominated in the platform’s native stablecoin, Hyperliquid USDH (USDH).

Following the announcement, Hyperliquid’s HYPE token jumped 19.5% to $37.14, extending its gains to nearly 47% over the past month, even as the broader cryptocurrency market has experienced a pullback, according to CoinGecko data. The development brings together two of the most active crypto use cases of the past two years, with both onchain perpetuals and blockchain-based prediction markets regularly generating hundreds of millions of dollars in daily trading volume.

Perpetuals volume remains elevated

Although perpetual futures activity has cooled since early November, when weekly volumes peaked at $341.7 billion between Nov. 3 and Nov. 9, trading has remained robust. Data from DeFiLlama shows that weekly perps volume has stayed above $200 billion for each of the past four completed weeks.

Even after the recent slowdown, current weekly volumes are still three to four times higher than levels recorded in January 2025, underscoring the continued strength of demand for onchain derivatives despite broader market volatility.

Sources:

https://cointelegraph.com/news/hyperliquid-supports-predictions-market-proposal

https://x.com/HyperliquidX/status/2018327360723202167

https://www.coingecko.com/en/coins/hyperliquid

https://defillama.com/perps