Hyperliquid is emerging as a challenger to traditional exchanges and prediction markets, says FalconX

MarketsShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailHyperliquid is emerging as a challenger to traditional exchanges and prediction markets, says FalconX

A new report shows Hyperliquid is rapidly expanding beyond crypto into pre-IPO markets, prediction contracts, and 24/7 asset trading, putting Wall Street giants on high alert.

By Helene Braun, AI Boost|Edited by Stephen Alpher May 25, 2026, 8:09 a.m. 2 min readMake preferred on

What to know:

• Crypto derivatives platform Hyperliquid is expanding beyond perpetual futures into pre-IPO trading, prediction contracts and tokenized real-world assets, putting it in more direct competition with traditional exchanges and prediction markets.
• FalconX said Hyperliquid’s HIP-3 and HIP-4 markets, along with strong inflows into new HYPE exchange-traded funds and a USDC partnership with Coinbase and Circle, could significantly boost the platform’s growth and revenue.
• While regulatory moves in Washington may support tokenized assets, FalconX warned that rising interest from incumbents like CME and ICE is drawing scrutiny over potential manipulation risks even as Hyperliquid leads decentralized perpetual futures in volume and value locked.

Crypto trading platform Hyperliquid is beginning 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 tokenized real-world assets are broadening 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 derivatives contract that dominates offshore digital asset trading. The platform’s native token, HYPE, has skyrocketed 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 in Hyperliquid’s HIP-3 markets, which allow users to trade assets including equities, commodities, forex and pre-IPO contracts around the clock. FalconX said those markets gained attention after traders used them to speculate on companies such as Cerebras, Anthropic and SpaceX before public listings.

The platform has also begun rolling out HIP-4 outcome markets, which function similarly to prediction markets by allowing traders to bet on binary outcomes tied to politics, economics and crypto events.

FalconX said the ability to trade prediction contracts alongside crypto and real-world asset positions on the same platform could become a major advantage.

“For example you could pair a HIP-3 perps position on NVDA with outcome markets that it could miss or beat earnings,” the report said.

The firm also highlighted strong early interest in newly launched exchange-traded funds tied to Hyperliquid’s HYPE token. Spot HYPE ETFs from 21Shares and Bitwise have attracted a combined $53 million in inflows after only a few trading sessions, according to Bloomberg data cited in the report.

FalconX said those 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 an aligned quote asset could significantly increase protocol revenue. FalconX estimated the arrangement could generate as much as $160 million in annualized revenue based on reserve yields tied to USDC balances on the platform.

The report also noted that regulatory developments in Washington could help accelerate adoption of tokenized real-world assets on decentralized trading venues. FalconX cited reports that the SEC is considering an innovation exemption framework for tokenized stocks.

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 tied to Hyperliquid’s markets.

Even so, 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.

HyperliquidAI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.

More For You

HYPE funds attract millions as investors dump bitcoin and ether ETFs

By Omkar Godbole|Edited by Sheldon Reback42 minutes ago

Investors turn to HYPE and XRP funds while dumping bitcoin and ether ETFs.

What to know:

• Investors yanked over $1 billion from bitcoin ETFs last week and over $215 million from ether funds, signaling waning appetite for broad large-cap crypto exposure.
• Instead, the capital is rotating into select altcoins, with new HYPE spot products drawing about $72 million and XRP and SOL ETFs attracting $22 million...

Read full storyLatest Crypto News

HYPE funds attract millions as investors dump bitcoin and ether ETFs

42 minutes ago

Bitcoin trades above $77,000 as oil's 5% slide pushes Asian equities higher

3 hours ago

Bitcoin options are coming to Nasdaq. Here's what it means for you.

5 hours ago

Coinbase does not fear competition from Wall Street, says exchange executive

15 hours ago

Crypto and the Fed: State of Crypto

16 hours ago

A massive $1 trillion hidden market is waiting to be unlocked in bitcoin, says new report

20 hours agoTop Stories

AI is speeding up the quantum threat to crypto, security experts warn

21 hours ago

Crypto rails are becoming the default payment layer for AI agents, report says

22 hours ago

Clarity Act could spark a boom in crypto ‘yield-as-a-service’

May 23, 2026