Hyperliquid’s HYPE token soared over 20% to lead cryptocurrency gainers, as the HyperCore team announced support for HIP-4, a proposal to introduce “outcome” trading.
This development marks a strategic move for the decentralized perpetual futures platform, aiming to capture a share in one of the fastest-growing sectors.
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Hyperliquid’s HIP-4 Proposal Sends HYPE to 2-Month High
Market data showed that HYPE surged 22.39% over the past day, outperforming the broader market’s 3.6% gain over the same period. This made it the top gainer among the 100 largest cryptocurrencies on CoinGecko.
At press time, HYPE was trading at $37, marking its highest price since late November 2025. Its trading volume also surged by more than 36% to around $1 billion.
Hyperliquid (HYPE) Price Performance. Source: BeInCrypto MarketsThe price rally comes amid the latest network developments. The HyperCore team confirmed its support for HIP-4 on February 2. HIP-4 introduces outcome trading, a new type of contract designed to be fully collateralized and to settle within fixed ranges.
This structure allows for a variety of use cases, including prediction markets and bounded options-style instruments. It’s worth noting that while outcome trading closely overlaps with prediction markets, the two are not synonymous.
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Prediction markets are a specific form of outcome trading in which participants trade contracts tied to future events, with prices reflecting the implied probability of each outcome.
Outcome trading is a broader concept that encompasses prediction markets alongside other event-based instruments, such as bounded options or structured outcome contracts. In short, all prediction markets fall under outcome trading, but not all outcome trading constitutes prediction markets
In contrast to traditional derivatives, outcome-based contracts do not use leverage or liquidation mechanisms. Instead, they introduce non-linear payoffs and dated contracts. According to the team,
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The HIP-4 outcome trading feature is currently live on testnet. Once technical work is finalized, the protocol plans to launch canonical markets that rely on objective settlement sources.
Canonical markets will use USDH, Hyperliquid’s native stablecoin. The team added that, depending on user feedback, the infrastructure could later be opened to permissionless market deployment.
The latest move follows growing traction after the platform’s HIP-3 deployment. Activity across externally deployed markets has continued to expand, with open interest surging to an all-time high of over $1 billion on January 29. At press time, open interest stood at $929.4 million.
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Prediction Markets Achieve Record Growth
Meanwhile, prediction markets are emerging as a rapidly expanding sector, attracting major players looking to capitalize on growing momentum. Coinbase recently launched prediction markets for all US users through a partnership with CFTC-regulated Kalshi, signaling increasing mainstream adoption.
Interest in the sector has risen alongside higher activity across these platforms. According to data from Dune, monthly trading volume reached an all-time high of $12.4 billion in January 2026, led by Kalshi, Polymarket, and Opinion.
Just three days into February, volume has already reached $1 billion, highlighting the sector’s strong growth trajectory.
Prediction Market Monthly Volume. Source: DuneOverall, Hyperliquid’s support for HIP-4 expands the protocol’s capabilities beyond traditional perpetual futures, positioning it to benefit from the growing demand for outcome-based trading products. As prediction markets gain traction as one application of this broader framework, the successful execution of HIP-4 could drive further adoption across the Hyperliquid ecosystem.
Source: https://beincrypto.com/hyperliquid-hype-prediction-market-expansion/
