---
type: source
title: "Hyperliquid HIP-4 proposal includes prediction markets; 29.7% perp market share in Q1 2026"
author: "AInvest / CoinMarketCap / FinTech Weekly"
url: https://www.ainvest.com/news/hyperliquid-hype-price-tests-support-hip-4-proposal-locks-supply-2604/
date: 2026-04-08
domain: internet-finance
secondary_domains: []
format: article
status: processed
processed_by: rio
processed_date: 2026-04-10
priority: medium
tags: [hyperliquid, prediction-markets, institutional, derivatives, hype, hip4, perps, market-share]
extraction_model: "anthropic/claude-sonnet-4.5"
---

## Content

**HIP-4 Proposal:** Hyperliquid's governance proposal includes prediction markets as a future product line. Status: under discussion (not yet passed as of April 10).

**Q1 2026 market data:**
- Hyperliquid captured 29.7% of the perpetual swaps market in Q1 2026
- 953.4% quarterly volume growth
- Heavy institutional and programmatic volume (on-chain forensics confirm)

**Institutional integration:**
- Ripple Prime (institutional prime brokerage) now supports Hyperliquid, enabling cross-margined institutional access to on-chain derivatives alongside other asset classes
- USDH stablecoin: designed as MiCA-compliant, with 95% of reserve interest going to HYPE buybacks

**Product expansion:**
- Tokenized real-world assets including oil futures
- HIP-4 mentions prediction markets as future product line
- Commodities expansion: gold, silver driving Q1 2026 volume growth

**Volume context:**
- $2.30B daily volume in perps
- $5.6B peak (Iran war weekend oil hedging demand — exogenous institutional validation)

## Agent Notes

**Why this matters:** Hyperliquid at 29.7% perp market share with institutional prime brokerage integration represents the "ownership alignment turns network effects generative" thesis playing out in practice (Belief #4). The key pattern: Hyperliquid didn't extract value from users via fees — it returned value via HYPE buybacks, which attracted more volume, which funded more buybacks.

HIP-4's prediction market addition is interesting but vague. If Hyperliquid launches prediction markets at institutional scale with the same ownership-aligned model, this could be the on-chain prediction market infrastructure play that actually reaches critical mass (versus Polymarket's intermediated US access model or MetaDAO's governance-specific use case).

**What surprised me:** The commodities-driven volume growth (gold, silver, oil) is genuinely institutional. The $5.6B peak on Iran war weekend isn't retail speculation — it's hedging demand from people with real exposure to Middle East oil supply. Hyperliquid is processing legitimate risk management, not just speculation. This is the "feature not bug" volatility thesis (Belief #5) confirmed in a high-stakes context.

**What I expected but didn't find:** No details on what HIP-4's prediction market implementation would look like — whether it's governance-focused (futarchy-adjacent) or purely financial prediction markets (sports/events/outcomes). The distinction matters enormously for KB connections.

**KB connections:**
- `ownership alignment turns network effects from extractive to generative` (Belief #4) — Hyperliquid is the strongest current evidence for this belief
- `market volatility is a feature not a bug` (Belief #5) — Iran war weekend $5.6B peak confirms volatility creates liquidity demand, not flight
- `polymarket-kalshi-duopoly-emerging-as-dominant-us-prediction-market-structure-with-complementary-regulatory-models` — if Hyperliquid enters prediction markets, the duopoly framing may be premature

**Extraction hints:**
1. No new claims yet — HIP-4 is too vague and not passed. Archive for monitoring.
2. If HIP-4 passes and prediction markets launch: revisit for mechanism design details
3. The commodities institutional volume data is worth extracting as evidence for the ownership-alignment / volatility-as-feature theses

**Context:** Hyperliquid is on Arbitrum/its own L1. It is NOT a Solana ecosystem play, unlike MetaDAO and Futardio. Its institutional integration (Ripple Prime) puts it in a different regulatory and user-base tier than the Solana futarchy ecosystem.

## Curator Notes

PRIMARY CONNECTION: `ownership alignment turns network effects from extractive to generative`

WHY ARCHIVED: Q1 2026 market share data + institutional integration confirms ownership-alignment thesis in production. HIP-4 prediction market addition is a monitoring target. Low extraction priority for now — HIP-4 too vague. High priority if HIP-4 passes.

EXTRACTION HINT: Extract the Q1 2026 market share data as evidence for ownership-alignment thesis. Hold HIP-4 prediction market claim until implementation details are available.
