Hyperliquid has activated HIP-4, a proposal that lets anyone deploy prediction markets on its testnet without needing permission. The move comes as the platform's native token, HYPE, slipped below the $55 mark amid ongoing selling pressure.
What HIP-4 unlocks
The HIP-4 upgrade removes the gatekeeping for creating prediction markets on Hyperliquid's test environment. Previously, only the core team could launch such markets. Now any user or developer can spin up a market to bet on future events — from sports outcomes to election results — using testnet tokens. The change is designed to test the system's resilience and gather feedback before any potential mainnet deployment.
Prediction markets have gained traction in crypto as a way to crowdsource forecasts. By making them permissionless on testnet, Hyperliquid aims to attract a wider pool of participants to stress-test the infrastructure. The testnet environment uses fake tokens, so no real money is at stake during the trial. The company has not announced a timeline for moving these markets to the live mainnet.
HYPE token under pressure
While the protocol expands its capabilities, the HYPE token has been hit by selling. It fell below $55, a level that had held as support in recent weeks. The exact cause of the sell-off isn't clear from the available data, but traders point to broader market weakness and profit-taking after a rally earlier this year. HYPE's price has been volatile since its launch, and the current dip adds to uncertainty around its near-term direction.
The token is used for staking, governance, and paying fees on Hyperliquid. Its price performance often reflects sentiment around the platform's adoption and the broader crypto market. The decline comes as the broader cryptocurrency market sees mixed trading, with Bitcoin and Ethereum also showing modest losses.
The testnet phase will determine how well the permissionless prediction markets function under real-world conditions. Developers and users are now free to experiment, but any bugs or issues found could delay a mainnet rollout. The company has not set a specific date for the next steps, leaving the community to watch for updates.
For now, the focus is on the testnet. Whether the token price recovers may depend on how the market reacts to the HIP-4 deployment and any subsequent announcements.
