Cryptocurrency trading platform Hyperliquid is starting to compete with traditional exchanges and prediction market operators as it expands beyond perpetual futures trading, according to a new report from FalconX.
David Lawant, Senior Crypto Market Strategist, explained how Hyperliquid’s recent advances in pre-IPO markets, prediction contracts, and real-world tokenized assets broaden the platform’s appeal beyond crypto-native traders.
“Hyperliquid is experiencing a resurgence in popularity as demand for its HIP-3 markets expands to include pre-IPO markets,” the report said.
Hyperliquid first gained traction through crypto perpetual futures, a type of derivative contract that dominates offshore digital asset trading. The platform’s native token, HYPE, has soared 94% over the past three months. But FalconX said new products could push the platform into more direct competition with the likes of CME Group, Kalshi and Intercontinental Exchange-backed prediction marketplace Polymarket.
The report highlights growing activity on Hyperliquid’s HIP-3 markets, which allow users to trade assets including stocks, commodities, currencies and pre-IPO contracts, 24 hours a day. FalconX said these markets gained attention after traders used them to speculate on companies such as Cerebras, Anthropic and SpaceX ahead of their public listing.
The platform has also begun rolling out HIP-4 outcomes markets, which work similarly to prediction markets by allowing traders to bet on binary outcomes related to political, economic, and crypto events.
FalconX said the ability to trade prediction contracts as well as crypto and real asset positions on the same platform could become a major advantage.
“For example, you can pair a HIP-3 position in NVDA with earnings markets that could miss or exceed earnings,” the report said.
The company also highlighted strong early interest in newly launched exchange-traded funds tied to Hyperliquid’s HYPE token. Spot HYPE ETFs from 21Shares and Bitwise attracted a total of $53 million in inflows after just a few trading sessions, according to Bloomberg data cited in the report.
FalconX said these flows represented a larger percentage of HYPE’s market capitalization than early flows into Bitcoin, Ether (ETH), and Solana (SOL) spot ETFs at similar stages.
Meanwhile, Hyperliquid’s recent partnership with Coinbase (COIN) and Circle (CRCL) to integrate USDC as an aligned listing asset could significantly increase the protocol’s revenue. FalconX estimated that the deal could generate up to $160 million in annualized revenue based on reserve yields tied to USDC balances on the platform.
The report also notes that regulatory developments in Washington could help accelerate the adoption of real-world token assets on decentralized trading platforms. FalconX cited reports that the SEC is considering an innovation exemption framework for tokenized stocks.
At the same time, the company warned that growing attention from traditional financial exchanges could lead to regulatory scrutiny. CME and ICE have raised concerns with regulators about potential risks of manipulation related to Hyperliquid markets.
Despite this, FalconX said Hyperliquid continues to dominate the decentralized perpetual futures markets in terms of trading volumes, revenue and total value locked, positioning it as one of the fastest growing crypto trading platforms.
