Hyperliquid HIP-4 Predicts Market Trading Volume to Increase Nearly Threefold, Regulatory Access as Major Limitation

Hyperliquid saw a rapid increase in trading volume after opening the HIP-4 prediction market layer for third-party permissionless deployment on August 29. The average daily trading volume for HIP-4 was approximately $545,000 in the 28 days prior to the launch, but surged to $1.97 million on August 31, with nearly $2.75 million in trading volume within a 24-hour period. The number of active traders rose from 1,256 to 1,841. The prediction market project Outcome emerged as the primary beneficiary, currently accounting for nearly 85% of the trading volume on HIP-4, and its launch of a $1 million trading incentive program further boosted liquidity. HRC believes that Hyperliquid's core advantage lies in its unified account system, allowing users to hedge perpetual positions using prediction market contracts, an experience that other platforms cannot offer. The sports prediction market may represent the largest growth potential for HIP-4, with a cumulative trading volume of $189.5 million during the World Cup period, accounting for about 3% of the global World Cup prediction market trading volume. However, HRC noted that the main limitation currently facing HIP-4 is regulatory access, particularly in the U.S. market, which involves regulatory frameworks such as the CFTC and SEC, and sports prediction markets may trigger gambling-related regulatory scrutiny.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.