Hyperliquid (HYPE), the largest decentralized perpetual futures platform, saw its native token surge nearly 20% on Monday after the HyperCore team announced support for a proposal that would expand the layer-1 network into prediction markets.
What Happened: Prediction Markets Expansion
The team behind HyperCore, Hyperliquid's core infrastructure, said it will back the HIP-4 proposal to enable fully collateralized outcome contracts on the platform. User demand drove the decision.
In a post on X, Hyperliquid said extensive interest in prediction markets and bounded options-like instruments prompted the move. The feature would allow traders to wager on political elections, sports and other events.
HIP-4 outcomes would function like betting slips with capped payouts, settling within fixed ranges without leverage, liquidations or margin calls. The feature remains in testing on the testnet, with canonical markets to be denominated in Hyperliquid's native stablecoin, Hyperliquid USDH (USDH).
HYPE jumped 19.5% to $37.14 following the announcement, extending its monthly gain to 46.9% even as the broader crypto market retreated, according to CoinGecko data.
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Why It Matters: Two Hot Sectors Converge
The integration would merge two of crypto's most active use cases over the past two years. Both onchain perpetuals and blockchain-powered prediction markets now consistently generate hundreds of millions of dollars in daily trading volume.
Weekly perpetuals volume has remained above $200 billion for the past four completed weeks.
That figure represents three to four times the volume recorded in Jan. 2025, though it has cooled from the record $341.7 billion recorded between Nov. 3 and Nov. 9.