Hyperliquid HIP-4 Gains Early Market Share From Polymarket

Hyperliquid HIP-4 opened event trading with strong first-day trading activity as prediction markets reached new highs.

ContentsPermissionless Markets Expand Hyperliquid AccessCLOB Engine Supports Faster Event TradingUser Growth And HYPE Price Add MomentumThe framework recorded 6.05 million contracts at its first peak and captured 0.7% of the prediction market. Polymarket still led with 190 million contracts, while Kalshi remained ahead with 546 million contracts.

Permissionless Markets Expand Hyperliquid Access

Hyperliquid is using HIP-4 to bring permissionless outcome markets to its native Layer 1 network. Users can launch event markets after staking 1 million HYPE, a rule designed to limit spam and weak listings. This differs from Polymarket and several rival platforms, where approved creators control new market launches.

The structure gives Hyperliquid a broader role in event trading as demand grows across prediction platforms. It also places HIP-4 against Limitless, Crypto.com, Opinion, PredictFun, and other exchanges that have added event products. The launch shows how prediction markets are spreading beyond single-purpose platforms and into wider trading ecosystems.

HIP-4 markets are designed to work with the wider Hyperliquid system. Traders can use the same wallet for Bitcoin outcomes, perpetual futures, spot markets, and event contracts.

CLOB Engine Supports Faster Event Trading

Hyperliquid also brings its Central Limit Order Book engine into prediction markets. The system supports fast order matching and instant fills, while high-volume users can access lower taker fees. Prediction contracts settle in USDH, the network’s native stablecoin.

This infrastructure may give HIP-4 a practical edge for active traders who already use Hyperliquid. Cross-margin access also allows users to manage event exposure besides crypto and traditional market-linked positions. As a result, traders can hedge within one ecosystem instead of moving funds across several platforms.

Hyperliquid has also benefited from HIP-3 activity and TradeXYZ deployment. HIP-3 has supplied up to 45% of daily volumes, according to Dune Analytics data cited in the market report. TradeXYZ remains the largest HIP-3 deployer and accounts for more than 91% of open interest on that market layer.

User Growth And HYPE Price Add Momentum

Hyperliquid reported a record 2,441 new original wallets on May 3, lifting total users to about 1.19 million. Polymarket remains far larger with more than 18 million retail users, but HIP-4 may help Hyperliquid recover activity lost from softer token trading.

Hyperliquid recently posted a peak inflow of new traders, as it set hopes on HIP-3 and HIP-4 to revive the markets with new trading opportunities. | Source: Dune Analytics.

HIP-3 is also set to support pre-IPO markets. These contracts will use the latest funding round data for basic valuation, then shift price discovery to perpetual futures. If an IPO occurs, the contract price will convert to public pricing.

HYPE traded near $41.65 after the launch, close to a three-month high. The token has struggled to break beyond the $40 range for months, yet prediction markets may improve demand if HIP-4 sustains early growth.