HYPE surged after the team behind HyperCore, the system that runs Hyperliquid’s Layer-1 chain, announced support for a proposal known as HIP-4.
This proposal would bring prediction markets to the Hyperliquid ecosystem.
If implemented, the update would allow people to trade fully backed contracts on Hyperliquid. The platform is currently the largest decentralized perpetual futures platform.
With this change, users could place outcome-based trades linked to elections, sports events, and other subjects.
The Hyperliquid team shared the decision in an X post on February 2. They noted strong interest from users who want prediction tools and simple, bounded option-style products.
They also mentioned that HIP-4 could create room for additional ideas and new types of applications on the network.
According to the proposal, HIP-4 outcomes would work as capped-return slips. Each position would settle within a set range and would not involve leverage, liquidations, or margin requirements.
Hyperliquid explained that this feature is still in development and is only active on the testnet. The main markets would use the platform’s own stablecoin, Hyperliquid USDH (USDH), if the proposal moves ahead.
News of the planned addition pushed HYPE up 19.5% to $37.14. This increase continued the token’s upward trend, which has grown by about 46.9% over the past month.
