Inside Hyperliquid’s move to an ‘everything exchange’ with HIP-4 rollout

Hyperliquid’s HYPE has been the most resilient altcoin amid the broader crypto decline, thanks to its strong traction. 

The perpetual DEX’s equity perps via HIP-3 have become a massive success, lifting the platform’s market dominance to 33% – A whopping 15% increase in weeks. 

Now, the platform plans to activate Hyperliquid Improvement Proposal-4 (HIP-4), allowing native prediction markets and Options trading. These are among the hottest narratives in the space after stablecoins and tokenization. 

The twist?

These offerings will be strictly denominated in USDH, Hyperliquid’s native stablecoin, to keep generated fees within the ecosystem. The fees are used to support the HYPE buyback program and other initiatives. 

Hyperliquid’s key drivers

Commenting on the update, Ryan Watkins, Founder of crypto VC firm Syncracy Capital, billed the move as a push towards the platform’s vision of ‘everything exchange.’

“The ‘everything exchange’ thesis for Hyperliquid is only getting clearer by the day. Polymarket and Kalshi are both decacorns by the way.”

At press time, the exact timeline for the debut of the prediction markets was not yet made public. But the platform said the offering was currently on the testnet and could be available soon. 

Meanwhile, equity perps and trading in broader leveraged tokenized stocks and ETFs, collectively under the RWA category, have risen from zero to 10% of overall Hyperliquid’s Open Interest (OI) in about a month.

According to Blockwork’s Research Analyst, Dan Smith, RWA’s share could hit 50% soon. 

Will HYPE’s price recovery extend?

If prediction markets also pick up momentum like RWA, then HYPE may benefit more from the tailwind. 

In fact, the altcoin rallied 9% after the HIP-4 update and added another 11% at the time of writing.

This brought its second leg of recovery to 30% from the $28 support zone. 

The rally cooled near the 200-day moving average, a key level that often signals an extended uptrend when reclaimed as support. A hold above it would put the $35–$38 zone in focus for bulls.

Should bulls succeed, the third leg of the rally may likely push the altcoin to the $50 psychological level, effectively cutting its late 2025 losses by half. 

However, if market sentiment sours again at the 200-Day MA, sellers could retest the $28 support. 

Final Thoughts 

• Hyperliquid plans to roll out native prediction markets and Options trading, but the pairs will be strictly denominated in its USDH stablecoin.
• Analysts view the update as a move towards the ‘everything exchange’ after the platform’s RWA success.