HYPE climbs 20% after Hyperliquid backs prediction markets

The HYPE token surged nearly 20% to $37.14 after the Hyperliquid team announced its support for HIP-4 — an initiative to launch prediction markets on its HyperCore network infrastructure. The decision, described as a response to “overwhelming user demand,” boosted trader interest in the ecosystem’s native token.

Hyperliquid clarified that the integration will enable fully collateralized contracts with no leverage, liquidations, or margin requirements. The new instruments will function as option-like “bounded” contracts with fixed payout ranges and rapid clearing. Broader context on the platform’s tools and features is examined in the Hyperliquid review.

For now, the feature is running on testnet, with baseline markets denominated in the USDH stablecoin. The team noted that HIP-4 also opens the door to “new and experimental” applications built on Hyperliquid.

The rise in HYPE highlights the convergence of two of the market’s fastest-growing segments over the past two years: on-chain perpetuals and prediction markets. Both categories continue to show strong user demand and high daily volumes reaching hundreds of millions of dollars.

According to DeFiLlama, weekly volume in perpetuals remains above $200 billion despite cooling from the record $341.7 billion peak in early November of last year. Current volumes are still triple those seen at the start of 2025, underscoring deep liquidity and sustained interest in derivatives.

By integrating prediction markets, Hyperliquid becomes one of the first major on-chain platforms to combine perps trading and outcomes markets within a single architecture. The move intensifies competition among DEXs seeking to expand beyond perps and position themselves as full-scale on-chain derivatives hubs.

Taken together, the backing of HIP-4 and the rally in HYPE reflect community confidence that Hyperliquid will continue expanding its functionality and strengthening its position in the high-performance derivatives market.