Hyperliquid Introduces HIP-4 Upgrade as Prediction Market Demand Surges
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On July 20 Hyperliquid deployed HIP-4 to enable permissionless on-chain prediction markets, allowing qualified deployers to use validator-approved outcome templates, require a continuous 500,000 HYPE stake for six months with slashing for unresolved markets, permit 100 outcomes per builder initially and mandate AQAv2-only settlement. The HYPE token traded around $60 (down ~1% 24h, ~10% 7d, ~16% 2w but up ~34% year) and the upgrade targets crypto DeFi and DEX adoption as prediction markets reached a $50.7 billion nominal size and $113.8 billion trading volume in June (+49%), indicating growth potential despite a muted token reaction.
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- HIP-4 update was deployed by Hyperliquid to enable permissionless development for outcome-based prediction markets.
- The native token price remained stable at around $60 in light of the major protocol upgrade.
The decentralized exchange Hyperliquid announced on July 20 its plans regarding the democratization of the process of creating on-chain prediction markets. The upcoming HIP-4 update of the protocol will permit permissionless deployment. By removing the process from the control of validator deployment only.
The validators will be able to vote on outcome templates that are exact and will be placed on-chain. The qualified community of deployers will use these templates for developing their event markets independently. To ensure successful settlement of the event market, the deployer has to stake 500,000 HYPE tokens continuously for six months.
The validators will slash the assets of the deployer in case of failure in settlement or quitting the market. The deployers whose event contract will be unresolved for one week will face economic consequences instantly. Initially, each builder will be able to create 100 outcomes, and additional allocation will be possible via auctions. Settlement quotes will be possible with AQAv2 tokens only.
The Token Has A Moderately Receptive Reaction
Despite the news of a significant boost to the technical capacities of the crypto exchange, the native HYPE token of Hyperliquid did not get a significantly receptive reaction from the market. The price of the HYPE token stood at $60, which was an approximate decrease of 1% in the preceding 24 hours, in comparison with its performance in the general crypto market. According to the data from the markets, the price of the HYPE token decreased by nearly 10% in the past seven days and roughly 16% in the last two weeks. However, despite the declines, the HYPE token has increased by around 34% in a year’s time.
Predictive Markets Power Hyperliquid’s New Initiatives
The most recent endeavor of Hyperliquid comes amid rising interest in prediction markets across the world. The data released by companies operating within the industry shows that the nominal size of prediction markets reached an all-time high of $50.7 billion in June due to key sporting tournaments like Wimbledon and the NBA Finals. The total volume of trades on predictive platforms rose by nearly 49 percent to reach about $113.8 billion in the same period. With its ecosystem focusing on builders, Hyperliquid aims to become one of the new derivative products.
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