Popular decentralized perpetual (perp) contracts trading platform Hyperliquid (HYPE) is taking the Wall Street by storm. A new report by crypto broker firm FalconX posits that Hyperliquid is making a rapid expansion beyond just the crypto industry, potentially targeting a far bigger market than initially thought.
Hyperliquid is coming to eat Wall Street’s lunch
In a report published on Monday, FalconX remarked crypto perp platform Hyperliquid is expanding into pre-IPO trading, prediction markets, and tokenized real-world assets (RWAs) – standing in direct competition with traditional exchanges.
David Lawant, a senior crypto market strategist, emphasized how Hyperliquid’s Hyperliquid Improvement Proposal-3 (HIP-3) is enhancing its demand among traders.
For the uninitiated, HIP-3 is a Hyperliquid proposal that allows users to trade a much broader range of assets like equities, forex, commodities, and even pre-IPO contracts using the same on-chain infrastructure as its perpetual futures.
FalconX stated that the aforementioned markets gained traction after traders used them to speculate on emerging AI firms like Cerebras, Anthropic, and Elon Musk’s SpaceX before they went public.
Similarly, Hyperliquid is now in the works of rolling out HIP-4 which works similar to prediction markets in that it allows traders to bet on binary outcomes tied to macroeconomic developments, sports, politics, and crypto events.
FalconX dubbed HIP-4 rollout a “major advantage” for Hyperliquid, since the ability to trade prediction contracts in addition to crypto and RWA positions on the same platform could be a game-changer.
The report gives an example, saying that traders can pair a HIP-3 perps position on Nvidia (NVDA) with outcome markets, that it could miss or beat its quarterly revenue estimate.
HYPE ETFs gaining popularity
HYPE exchange-traded funds (ETFs) hit public markets earlier this month, and are getting decent traction in terms of net inflows received. According to a Bloomberg report, the 21Shares and Bitwise HYPE ETFs have pulled a combined total of $53 million in inflows as of Monday.
The following table from SoSoValue shows the consistent interest in HYPE ETFs. Since they went live on May 12, these ETFs have not yet had a single day in the red, having already amassed more than $74 million in cumulative net inflows.
That said, recent extraordinarily bullish price action seen by the HYPE token may be coming to a temporary halt. Analysts suggest that the token may be on its way back to $40 due to overheating RSI and TD Sequential indicators.