Crypto 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.
Senior crypto market strategist David Lawant outlined how Hyperliquid’s recent moves into pre-IPO markets, prediction contracts and real-world tokenized assets are expanding the platform’s appeal beyond crypto-native traders.
“Hyperliquid is seeing traction 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 risen by 94% over the past three months. But FalconX said newer products could push the platform into more direct competition with firms such as CME Group, Intercontinental Exchange-backed prediction market Kalshi and Polymarket.
The report pointed to growing activity on Hyperliquid’s HIP-3 markets, which allow users to trade assets including stocks, commodities, forex and pre-IPO contracts around the clock. FalconX said these markets gained attention after traders used them to speculate on companies such as Cerebras, Anthropic and SpaceX ahead of public listings.
The platform has also started rolling out HIP-4 outcome markets, which work similarly to prediction markets by allowing traders to bet on binary outcomes linked to politics, economics and crypto events.
FalconX said the ability to trade prediction contracts alongside real-world crypto and asset positions on the same platform could be a big advantage.
“For example, you could pair a HIP-3 perps position on NVDA with performance markets that it could miss or beat earnings,” the report said.
The firm also highlighted strong early interest in recently launched exchange-traded funds linked to Hyperliquid’s HYPE token. Spot HYPE ETFs from 21Shares and Bitwise have attracted a combined $53 million in inflows after just a few trading sessions, according to Bloomberg data cited in the report.
FalconX said these inflows represented a larger percentage of HYPE’s market capitalization than early inflows into spot bitcoin, ether (ETH) and solana (SOL) ETFs at similar stages.
Meanwhile, Hyperliquid’s recent partnership with Coinbase (COIN) and Circle (CRCL) to integrate USDC as a custom offering asset could significantly increase protocol revenues. FalconX estimated that the arrangement could generate as much as $160 million in annual revenue based on reserve dividends tied to USDC balances on the platform.
The report also noted that regulatory developments in Washington could help accelerate the adoption of real-world tokenized assets on decentralized trading platforms. FalconX cited reports that the SEC is considering an innovation exemption framework for tokenized shares.
At the same time, the firm warned that growing attention from traditional financial exchanges could bring regulatory scrutiny. CME and ICE have raised concerns with regulators about potential manipulation risks associated with Hyperliquid’s markets.
Still, FalconX said Hyperliquid continues to lead decentralized perpetual futures markets in trading volumes, revenue and total value locked, positioning it as one of the fastest-growing trading platforms in crypto.
