HYPE token surged 21.9% following the HIP-4 proposal supporting prediction markets via Hyperliquid.
The HYPE token experienced a notable increase of 21.9% following the announcement of the HIP-4 proposal by its developers, aimed at facilitating prediction markets through Hyperliquid.
HyperCore will enable outcome trading (HIP-4), where contracts are fully collateralized and settle within a defined range. These contracts can be applied in various scenarios, including prediction markets.
— Hyperliquid (@HyperliquidX) February 2, 2026
The project team highlighted a strong interest from users for this feature, which will allow for collateralized contracts tailored for betting on various events, including sports and political occurrences.
Developers anticipate that the HIP-4 standard will lay the groundwork for innovative applications using HyperCore technology.
This mechanism mimics traditional betting systems with set payouts and excludes the risks associated with leverage, liquidations, or margin calls. Instead, settlements will occur using Hyperliquid's USDH stablecoin.
This initiative bridges two emerging trends: on-chain derivatives and prediction markets. Currently, the feature is undergoing testing, but a mainnet launch date has not been announced yet.
Post-announcement, HYPE's price soared to $37.28. In just one month, the token has appreciated by 49%, showcasing resilience amid a broader downturn in the cryptocurrency market.
Additionally, some analysts are starting to view the HYPE token as a viable option for capital preservation.
