Hyperliquid has announced the launch of the long-awaited HIP-4 market, which will support prediction pairs. The first providers have already emerged, starting with seven prediction pairs.

Hyperliquid is positioning itself to carve out space in the prediction market industry, where it could potentially compete with established leaders Polymarket and Kalshi, as well as Robinhood's native platform. Prediction markets have grown into one of the most closely watched corners of crypto and retail trading, driven by demand for betting on outcomes ranging from elections and sports to macroeconomic data releases, which has drawn both regulated exchanges and crypto-native platforms into the space. Initially, prediction markets will be launched by curated providers, but the next Hyperliquid update may introduce the ability to create permissionless pairs.

Prediction markets represent the next major expansion for Hyperliquid, following the launch of HIP-3 for tokenized securities and third-party markets. The HIP-3 model already established Hyperliquid's approach of letting third-party deployers stake HYPE bonds to run their own markets, and HIP-4 extends that framework from asset trading to outcome-based contracts. It may take some time before the prediction markets gain sufficient liquidity and demonstrate fair resolutions—one of the key challenges for any new prediction venue, since trader confidence depends on markets resolving accurately and without dispute.

As Cryptopolitan reported, prediction markets were still on an expansion track in the summer of 2026, with enough space for Hyperliquid to fill the niche. Hyperliquid already carries over 300 pairs for various outcomes, but the next upgrade is expected to bring third-party issuers.

The move will increase HYPE staking and build up a new liquidity hub, HIP-4. Even before the launch, total outcome volume for Hyperliquid pairs reached over $300M, with a new liquidity hub arriving in the form of third-party deployers.

TradeXYZ prepares to launch predictions

TradeXYZ, the leading deployer on HIP-3, has already prepared to launch its first markets on HIP-4.

As with other permissionless contract launches, the deployer must delegate HYPE tokens. On-chain data shows a wallet linked to TradeXYZ staked and delegated sufficient HYPE tokens to support new market launches. This is the first HYPE delegation from TradeXYZ in months, with enough tokens to keep both the HIP-3 bond and an eventual new market. The bond to launch third-party prediction pairs is set at 500,000 HYPE.

Based on delegation waiting times, TradeXYZ may start deploying its markets from September 5. If its HIP-3 performance is repeated, TradeXYZ could also become a major player—or even a monopolist—for outcome deployments.

Before TradeXYZ, OutcomeXYZ became the first party to unlock HIP-4 staking and prepare to launch its first markets. In the past day, Outcome prediction pairs climbed to the top among Hyperliquid prediction markets, suggesting competition with TradeXYZ will intensify in the coming days.

Skew is also among the early deployers and will receive support from HyperionDeFi to stake the required 500,000 HYPE. Deployments are also increasing in real time, with leading market participants competing to gain an early advantage.

Hyperliquid's HYPE trades near all-time highs

The expansion of activity on Hyperliquid through prediction markets is expected to boost the platform's influence. HYPE responded by trading near all-time highs above $81.

Hyperliquid daily fees also accelerated in August, bouncing to over $3M on a daily basis. The platform shows liquidity switching quickly to the best and most liquid markets, recently moving traders toward crypto, while stock trading saw a slowdown.

Hyperliquid is also one of the most active token burners, which forms part of HYPE's fundamental support. The ongoing burn is based on fees, so increased on-chain activity is a factor that moves the price of HYPE.

The Hyperliquid ecosystem remains on track to offer multiple products and bring liquidity to new markets. The platform has distributed over $105M to more than 1,500 builder teams that deployed apps in its ecosystem, immediately tapping liquidity with additional fees. How quickly the first HIP-4 markets attract liquidity, and whether their resolutions are seen as fair, will be the main indicators to watch as the new market segment matures.