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Hyperliquid Testnet Enables Permissionless Prediction Markets

Created at 31 Jul · 2:21 PM1 source↑ Market-relevant
IN SHORT

Decentralized exchange Hyperliquid has launched HIP-4 permissionless deployments on its testnet, allowing developers to launch prediction markets. This development coincides with a price drop for its native HYPE token below $55, influenced by broader market trends and whale selling activity.

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Key Numbers

$55HYPE token price level
$182,000HIP-4 market open interest
$881,000HIP-4 market notional trading volume
2%HYPE token price drop in 24 hours
$64,000Bitcoin price level
1.02MHYPE tokens bought by whale
$18Average purchase price of HYPE tokens

Who's Involved

Hyperliquid
Decentralized exchange enabling prediction markets
Lookonchain
Onchain analytics platform that flagged whale activity
FalconX
Exchange where whale deposited HYPE tokens
Coinbase Prime
Exchange where whale deposited HYPE tokens

↳ Why This Matters

The launch of permissionless prediction markets on Hyperliquid's testnet signifies a move towards greater decentralization and developer autonomy in the crypto space, potentially fostering innovation in decentralized finance. The associated price action of the HYPE token reflects market sentiment and potential impacts of whale activity and broader macroeconomic factors.

Key facts

  • Hyperliquid's HIP-4 permissionless deployment feature is now live on its testnet.
  • This feature enables developers to launch prediction and outcome markets on the platform.
  • The HYPE token has seen its price fall below the $55 mark.
  • A significant whale has unstaked and deposited HYPE tokens to exchanges for likely sale.

Decentralized exchange Hyperliquid has launched its HIP-4 permissionless deployment feature on the testnet, a move that will allow developers to create and deploy their own prediction markets on the platform. This initiative aims to rival existing prediction market platforms like Polymarket and Kalshi.

The feature, which was initially announced last week, is expected to transition to the mainnet soon after its testnet rollout. Hyperliquid plans to introduce additional functionalities, including configurable fees and more testnet templates, to enhance the developer experience.

Data from Blockworks indicates that sports prediction markets have historically driven most of the open interest on Hyperliquid's HIP-4 market. However, this open interest has seen a decline since the conclusion of the 2026 FIFA World Cup earlier this month. Currently, the HIP-4 market's open interest stands at $182,000, with a notional trading volume of $881,000.

Concurrently, the price of Hyperliquid's native token, HYPE, has fallen below the $55 mark. The token is trading around $54.700, representing a nearly 2% decrease in the last 24 hours. This price movement aligns with a broader market downturn, including Bitcoin's drop below $64,000, influenced by geopolitical discussions concerning Iran. Furthermore, HYPE is experiencing selling pressure from 'whales,' with one notable instance of a whale unstaking and depositing a significant amount of HYPE tokens, acquired 17 months ago at an average price of $18, to FalconX and Coinbase Prime, likely for liquidation.

Frequently asked questions

HIP-4 permissionless deployment on Hyperliquid allows developers to launch their own prediction and outcome markets on the platform without needing specific permissions, similar to how they can launch perpetuals for any asset.

The HIP-4 permissionless deployment feature is currently live on Hyperliquid's testnet, with plans for a mainnet launch soon. The open interest for the HIP-4 market is $182,000, and its notional trading volume is $881,000.

The HYPE token price has fallen below $55 due to a combination of factors, including broader market downturns, geopolitical discussions, and significant selling pressure from whales who are unstaking and depositing their tokens to exchanges.

What Happens Next

01Hyperliquid plans to roll out additional features for HIP-4, including configurable fees and more testnet templates.
02The HIP-4 permissionless deployment feature is expected to launch on the mainnet soon.

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Cadence

How It Developed

Hyperliquid announced HIP-4 permissionless deployments are live on testnet.
The feature allows developers to launch prediction and outcome markets.
Additional features like configurable fees and testnet templates are planned.
The HIP-4 market's open interest has declined since the 2026 FIFA World Cup.
The HYPE token price fell below $55 amid the testnet rollout.
Whales are unstaking and selling HYPE tokens, with one whale depositing tokens to exchanges after buying them 17 months ago.

Sources

T1
Hyperliquid Enables HIP-4 Permissionless Deployment of Prediction Markets on TestnetCoinGape

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