Decentralized trading platform Hyperliquid is moving to expand beyond its core trading business with a new proposal called HIP-4, which would introduce prediction market functionality to the platform. According to the available details, the feature is already in public testing, allowing users to trade on the outcomes of real-world events directly on-chain.
Entering the prediction market race
Prediction markets have gained traction across crypto as traders increasingly look for ways to express views on elections, macro events, sports, and other real-world outcomes. By proposing HIP-4, Hyperliquid is signaling that it wants a share of this fast-growing segment and is broadening its platform from decentralized trading into event-based market infrastructure.
The move places Hyperliquid in more direct competition with established names such as Polymarket and Kalshi. As user interest in on-chain forecasting products continues to rise, more platforms are trying to capture liquidity and attention in the category. If rolled out successfully, Hyperliquid could leverage its existing trading base and market activity to gain momentum quickly.
Public testing suggests active rollout
The fact that HIP-4 is already being tested publicly indicates that Hyperliquid is not merely floating an early-stage idea. Public testing usually serves to evaluate market structure, user demand, and product usability before a broader launch. That makes this proposal notable not just as a strategic intention, but as a concrete step toward execution.
More broadly, the initiative highlights how decentralized trading venues are seeking new growth avenues as competition intensifies. Whether HIP-4 can help Hyperliquid build a distinct edge in prediction markets will likely depend on adoption, execution, and how effectively it competes with incumbent platforms.