HYPE Soars Higher Than a Cat in a Tree After Hyperliquid’s Latest Proposal!

by

Well, wouldn’t you know it! Hyperliquid’s HYPE token has taken off like a scalded cat, climbing over 20% to lead the cryptocurrency pack, all thanks to the fine folks at the HyperCore team who decided to sprinkle some magic dust on their proposal known as HIP-4, which promises to introduce “outcome” trading – whatever in tarnation that means.

This here development is a strategic move, akin to a poker player raising the stakes, for the decentralized perpetual futures platform, which is angling to snag a piece of one of the fastest-growing sectors since sliced bread.

Hyperliquid’s HIP-4 Proposal Sends HYPE to 2-Month High

Market data-whatever that is-shows that HYPE surged 22.39% in the last day, leaving the broader market’s paltry 3.6% gain looking like a turtle in a race with a hare. This makes HYPE the top dog among the 100 largest cryptocurrencies on CoinGecko. Who’d have thought a little ol’ token could strut its stuff like that?

As of this very moment, HYPE was trading at $37, its highest price since late November 2025, which is about as exciting as watching paint dry, unless you’re a HYPE investor. Trading volume also made quite the ruckus, surging more than 36% to around $1 billion. I reckon that’s enough to make a pig squeal!

The price rally comes at a time when the HyperCore team has confirmed its support for HIP-4 on February 2. This proposal introduces outcome trading, a fancy type of contract designed to be fully collateralized and settle within fixed ranges-like a well-organized barn dance.

Now, this structure allows for a cornucopia of use cases, including prediction markets and bounded options-style instruments, whatever those are. It’s worth mentioning that while outcome trading overlaps with prediction markets, they ain’t quite the same thing-kinda like comparing apples to oranges.

Prediction markets are a specific form of outcome trading where participants trade contracts tied to future events, with prices reflecting the implied probability of each outcome. Outcome trading, on the other hand, is a broader concept that includes prediction markets alongside other event-based instruments, like bounded options or structured outcome contracts. In simpler terms, all prediction markets fall under outcome trading, but not all outcome trading constitutes prediction markets. Clear as mud, right?

“There has been extensive user demand in both of these areas, and builders will likely think of novel applications as well,” the team wrote, probably while enjoying a cup of coffee.

Unlike those traditional derivatives that seem to bring more headaches than solutions, outcome-based contracts don’t use leverage or liquidation mechanisms. Instead, they introduce non-linear payoffs and dated contracts. According to the team,

“The outcome primitive expands the expressivity of HyperCore, while composing with other primitives such as portfolio margin and the HyperEVM,” which sounds a bit like a fancy way of saying they’re trying to up their game.

The HIP-4 outcome trading feature is currently live on testnet, and once the technical ducks are in a row, they plan to launch canonical markets that rely on objective settlement sources-whatever that might mean in layman’s terms.

Canonical markets will use USDH, Hyperliquid’s native stablecoin. The team added that depending on user feedback-because we all know how much users love to give feedback-the infrastructure could later be opened to permissionless market deployment. Sounds like a recipe for chaos!

This latest move follows a swell of activity 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, for those keeping score at home.

Prediction Markets Achieve Record Growth

Meanwhile, prediction markets are popping up like daisies in spring, attracting big players looking to cash in on the growing momentum. Coinbase recently launched prediction markets for all US users through a partnership with CFTC-regulated Kalshi, signaling increasing mainstream adoption-expect to see your grandma trading contracts soon!

Interest in the sector has risen faster than a jackrabbit on a date, alongside higher activity across these platforms. According to data from Dune-whoever they are-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. If this keeps up, we might just need a bigger boat!

All in all, 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, leaving us all scratching our heads in wonder.

Read More

2026-02-03 12:06