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.
Senior crypto market strategist David Lawant described how Hyperliquid’s recent moves into pre-IPO markets, prediction contracts, and real-world tokenized assets are broadening the platform’s appeal beyond crypto-native traders.
“Hyperliquid is gaining momentum as demand for its HIP-3 markets expands to include pre-IPO markets,” the report says.
The 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 soared 94% in the last three months. But FalconX said the newer products could bring the platform into more direct competition with companies such as CME Group, Kalshi and Polymarket, the prediction market backed by Intercontinental Exchange.
The report noted 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 those markets gained attention after traders used them to speculate on companies like Cerebras, Anthropic and SpaceX before they went public.
The platform has also begun implementing HIP-4 outcomes markets, which function 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 and crypto asset positions on the same platform could become a major advantage.
“For example, a HIP-3 offender position in NVDA could be paired with outcome markets where it could lose or outperform,” the report says.
The firm also highlighted strong initial interest in recently launched exchange-traded funds linked to Hyperliquid’s HYPE token. The 21Shares and Bitwise Spot HYPE ETFs have attracted a total of $53 million in inflows after just 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 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 listing asset could significantly boost 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 noted that regulatory developments in Washington could help accelerate the adoption of real-world tokenized assets in decentralized trading hubs. FalconX cited reports that the SEC is considering an innovation exemption framework for tokenized stocks.
At the same time, the firm warned that the growing attention from traditional financial exchanges could lead to regulatory scrutiny. CME and ICE have expressed concerns to regulators about potential manipulation risks linked to Hyperliquid 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 crypto trading platforms.
