HYPE Price Jumps 20% On Hyperliquid Prediction Market Plans

Key Insights:

• The recent HYPE price surge is backed by $1B+ in daily volume with futures open interest at $5B.
• Hyperliquid approved support for HIP-4, which would add fully collateralized, non-leveraged outcome trading for elections, sports, and other real-world events.
• Santiment noted that even if Hyperliquid captures 100% of Polymarket’s market share, it would add only 5% to its revenue.

Hyperliquid’s native cryptocurrency, HYPE, has been on investors’ radar, with another 20% upside in the last 24 hours. The 32% HYPE price rally over the past week has led to outperformance across crypto market. This upside comes as the team behind the Hyperliquid decentralized exchange (DEX) approves plans for a prediction market.

HYPE Price Rally Above $35 Captures Investor Attention

HYPE price has staged a strong upside in the last 24 hours, despite the broader market consolidation. Following this Hyperliquid rally past $35, the HYPE token has entered the top 10 crypto assets, leaving behind players like Cardano (ADA).

This upside is supported by a 40% surge in daily trading volume, shooting past $1 billion. It shows strong bullish sentiment among traders. Moreover, HYPE futures open interest has surged to $5 billion, indicating strong demand.

Over the past two weeks, the HYPE price has rallied sharply, while gaining more than 71% following a local bottom on Jan. 19, 2026. The DEX token has significantly outperformed the broader altcoin market, which has largely remained in the red over the past week.

Speaking on the development, market analyst Credible Guy cited a major breakout. He noted that the next stop for the HYPE price could be $80, another 125% upside from the current level.

HYPE Price Rally Comes Amid HIP-4 Proposal

On Feb. 2, the team behind HyperCore, the core infrastructure supporting Hyperliquid’s layer-1 network, said it would back the HIP-4 proposal to expand the platform into prediction markets.

If implemented, HIP-4 would introduce fully collateralized contracts on Hyperliquid. This will allow users to trade outcomes tied to political elections, sports events, and other real-world markets. The feature would operate without leverage, margin calls, or liquidations. Thus, it will function similar to bounded, options-like instruments.

In a post on the X platform, Hyperliquid said the move was driven by “extensive user demand” for prediction markets. Also, the team cited a strong demand for outcome-based products, adding that HIP-4 could also enable new application types on the network.

Hyperliquid noted that outcomes trading remains a work in progress and is currently being tested on the testnet. Any canonical markets would be denominated in the platform’s native stablecoin, Hyperliquid USDH (USDH).

The proposed integration would bring together two of crypto’s most active use cases over the past two years. It includes on-chain perpetual futures and blockchain-based prediction markets that generate daily trading volumes of hundreds of millions of dollars.

A Hype or Real Outcome?

Blockchain analytics firm Santiment has shared its critic-view over the HIP-4 proposal launch by Hyperliquid. According to Santiment, HIP-4 would allow traders to use fully collateralized contracts that settle within a predefined price range, without leverage, margin calls, or liquidations.

This makes them different from traditional perpetual futures and better suited for prediction markets and options-like trades, where both gains and losses are capped by design.

Santiment noted that outcome contracts require traders to post 100% of the collateral upfront, with settlements based on objective reference prices. This structure appeals to users who want exposure to specific events without leverage risk.

Furthermore, the firm highlighted a keen comparison. It noted that even if Hyperliquid captured 100% of Polymarket’s current volume, it would add only about 5% to Hyperliquid’s total revenue. This shows that HIP-4 is viewed as a strategic expansion, not a core revenue driver, it said.

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