Hyperliquid Positioned as a Competitor to Conventional Exchanges and Prediction Markets, According to FalconX

MarketsShare this articleCopy linkX (Twitter)LinkedInFacebookEmailHyperliquid Positioned as a Competitor to Conventional Exchanges and Prediction Markets, According to FalconX

A recent analysis reveals that Hyperliquid is broadening its scope beyond cryptocurrency, venturing into pre-IPO trading, prediction contracts, and continuous asset trading, which has raised concerns among major Wall Street players.

By Helene Braun, AI Boost|Edited by Stephen Alpher May 25, 2026, 8:09 a.m. 2 min readMake preferred on

Key Insights:

• The crypto derivatives platform Hyperliquid is evolving from perpetual futures to include pre-IPO trading, prediction contracts, and tokenized real-world assets, increasing its competition with established exchanges and prediction markets.
• FalconX indicated that Hyperliquid’s HIP-3 and HIP-4 markets, along with significant investments in new HYPE exchange-traded funds and a partnership with Coinbase and Circle regarding USDC, could greatly enhance the platform's growth and revenue.
• While regulatory actions in Washington may favor tokenized assets, FalconX cautioned that increased interest from established players like CME and ICE is prompting concerns about potential market manipulation risks, despite Hyperliquid's dominance in decentralized perpetual futures trading.

According to a new report by FalconX, the crypto trading platform Hyperliquid is stepping into the arena of traditional exchanges and prediction market operators as it diversifies its offerings beyond just perpetual futures.

David Lawant, a senior strategist at FalconX, explained that Hyperliquid's recent expansions into pre-IPO markets, prediction contracts, and tokenized real-world assets are attracting a wider audience beyond just crypto-focused traders.

“Hyperliquid is gaining traction as the demand for its HIP-3 markets grows to encompass pre-IPO trading,” the report noted.

Initially, Hyperliquid gained popularity through its crypto perpetual futures, a common derivatives contract in offshore digital asset markets. The platform’s HYPE token has surged by 94% in the last three months. However, FalconX suggested that the introduction of new products could lead to more direct competition with companies like CME Group, Kalshi (backed by Intercontinental Exchange), and Polymarket.

The report highlighted increased activity within Hyperliquid’s HIP-3 markets, which enable users to trade a variety of assets, including equities, commodities, forex, and pre-IPO contracts around the clock. FalconX noted that traders have utilized these markets to speculate on companies like Cerebras, Anthropic, and SpaceX prior to their public offerings.

Additionally, the platform has introduced HIP-4 outcome markets that operate similarly to prediction markets, allowing traders to wager on binary outcomes related to political, economic, and crypto events.

FalconX emphasized that the ability to trade prediction contracts alongside cryptocurrency and real-world asset positions on a single platform could be a significant competitive edge.

“For instance, one could combine a HIP-3 perpetual futures position on NVDA with outcome markets predicting whether it will exceed or fall short of earnings,” the report explained.

The firm also noted robust initial interest in newly launched exchange-traded funds linked to Hyperliquid’s HYPE token. According to data from Bloomberg, spot HYPE ETFs from 21Shares and Bitwise have garnered a combined $53 million in inflows after just a few trading sessions.

FalconX remarked that these inflows constituted a higher percentage of HYPE’s market capitalization compared to the early inflows into spot bitcoin, ether (ETH), and solana (SOL) ETFs at similar points in time.

Moreover, Hyperliquid’s recent collaboration with Coinbase (COIN) and Circle (CRCL) to incorporate USDC as a standardized quote asset could substantially increase the platform's revenue. FalconX estimates this partnership could yield up to $160 million in annual revenue based on reserve yields related to USDC balances on the platform.

The report also pointed out that recent regulatory developments in Washington could facilitate the adoption of tokenized real-world assets on decentralized trading platforms. FalconX mentioned reports indicating that the SEC is contemplating an innovation exemption framework for tokenized stocks.

Simultaneously, the firm cautioned that heightened attention from traditional financial exchanges might lead to regulatory oversight. CME and ICE have expressed concerns to regulators about potential manipulation risks associated with Hyperliquid’s markets.

Despite these challenges, FalconX stated that Hyperliquid remains the leader in decentralized perpetual futures markets in terms of trading volume, revenue, and total value locked, establishing it as one of the fastest-growing trading platforms in the cryptocurrency space.

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