BlockBeats report, May 25: According to FalconX’s latest report, the cryptocurrency trading platform Hyperliquid is beginning to compete with traditional trading platforms and prediction market operators, having expanded its offerings beyond perpetual futures. The report notes that Hyperliquid has recently entered the pre-IPO market, prediction contracts, and tokenized real-world assets (RWA), broadening its appeal beyond crypto-native traders. Its native token, HYPE, has reached a new all-time high despite overall weakness in the crypto market.
The report specifically notes that activity on Hyperliquid’s HIP-3 market—which allows users to trade stocks, commodities, forex, and pre-IPO contracts around the clock—is growing, with traders already leveraging it to speculate on pre-listing prices of companies such as Cerebras, Anthropic, and SpaceX. Additionally, the platform has begun rolling out HIP-4 outcome markets, which function similarly to prediction markets, enabling traders to bet on binary outcomes of political, economic, and crypto events. FalconX believes that trading prediction contracts, cryptocurrencies, and RWA assets on the same platform could represent a significant advantage.
Meanwhile, spot ETFs linked to Hyperliquid’s HYPE token have garnered strong early interest. The spot HYPE ETFs from 21Shares and Bitwise have collectively attracted $530 million in inflows after just a few trading sessions. FalconX noted that these inflows represent a higher percentage of HYPE’s market capitalization than the early inflows seen in spot Bitcoin, Ethereum, and Solana ETFs at similar stages.
In addition, Hyperliquid recently partnered with Coinbase and Circle to integrate USDC as a quote asset, which could significantly increase protocol revenue. FalconX estimates that this arrangement could generate up to $160 million in annual revenue based on reserve yields from USDC balances on the platform.
The report also highlights risks, as traditional financial trading platforms (CME and ICE) have raised concerns with regulators about the potential for market manipulation on Hyperliquid, which could lead to increased regulatory scrutiny. Nevertheless, FalconX notes that Hyperliquid continues to lead in trading volume, revenue, and total value locked (TVL) in the decentralized perpetual futures market and remains one of the fastest-growing trading platforms in the crypto space.