Inside Hyperliquid’s Transition to an 'Everything Exchange' with HIP-4 Rollout

Hyperliquid

Hyperliquid’s HYPE has proven to be the most resilient altcoin during the ongoing downturn in the cryptocurrency market, drawing strength from its solid traction.

The platform's equity perpetuals, launched via HIP-3, have seen remarkable success, boosting its market dominance by 15% to reach 33% in just a few weeks. Now, Hyperliquid is gearing up to implement Hyperliquid Improvement Proposal-4 (HIP-4), which will introduce native prediction markets and options trading. These developments are among the most talked-about trends in the crypto space, following the popularity of stablecoins and tokenization.

The unique aspect of these new offerings is that they will be exclusively denominated in USDH, Hyperliquid's native stablecoin. This strategy is designed to keep the fees generated from these transactions within the ecosystem. The collected fees will support various initiatives, including the HYPE buyback program.

Source: X/Hyperliquid

Key Drivers Behind Hyperliquid's Growth

Ryan Watkins, the founder of the crypto venture capital firm Syncracy Capital, commented on this development, describing it as a significant step towards Hyperliquid’s vision of becoming an ‘everything exchange.’ He stated, “The ‘everything exchange’ thesis for Hyperliquid is only getting clearer by the day. Polymarket and Kalshi are both decacorns by the way.”

As of now, the exact timeline for launching the prediction markets hasn't been disclosed. However, Hyperliquid has indicated that these markets are currently being tested on the testnet and could potentially be available soon.

Meanwhile, the equity perpetuals and trading in broader leveraged tokenized stocks and ETFs, grouped within the RWA category, have surged from zero to account for 10% of Hyperliquid’s overall Open Interest (OI) in just one month. Blockwork's Research Analyst, Dan Smith, predicts that the RWA's share could soon reach 50%.

Hyperliquid
Source: Blockworks

Prospects for HYPE's Price Recovery

If the prediction markets gain traction similar to RWA, HYPE stands to benefit significantly from this momentum. Following the announcement of HIP-4, the altcoin experienced a 9% rally and climbed another 11% as of the time of writing. This brings its recovery to 30% from the $28 support level.

The upward movement has paused near the critical 200-day moving average—a key indicator that often suggests a sustained uptrend if reclaimed as support. Maintaining a position above this average could target the $35–$38 range for bullish traders.

Hyperliquid
Source: HYPE/USDT, TradingView

Should bulls succeed in pushing the altcoin higher, the third leg of the rally could help HYPE reach the psychologically significant $50 mark, effectively minimizing its losses from late 2025. However, if market sentiment turns negative again at the 200-Day MA, sellers might attempt to retest the $28 support level.

Final Thoughts

Key Takeaways:

Hyperliquid is launching HIP-4, introducing native prediction markets and options trading, solely in USDH.
Ryan Watkins emphasizes the platform's vision of becoming an ‘everything exchange.’
The platform's market dominance has increased to 33% due to successful equity perpetuals.
HYPE price is recovering and may rise towards $50, contingent on market momentum.