Related Questions

Key Points

• Hyperliquid is preparing a major expansion that could reshape how traders interact with onchain derivatives.
• The proposed prediction markets feature avoids leverage and liquidations, offering a safer trading structure.
• HYPE’s strong price reaction reflects growing confidence in Hyperliquid’s long-term vision.
• The move blends two of crypto’s fastest-growing sectors into a single layer-1 ecosystem.

A New Chapter for Hyperliquid and HYPE

Hyperliquid has quietly positioned itself as one of the most influential players in decentralized perpetual futures, but its latest move suggests the platform is aiming much higher. Following signals of support for the HIP-4 proposal, the Hyperliquid ecosystem is preparing to enter the prediction markets space — a shift that immediately caught the market’s attention.

Within hours of the announcement, HYPE surged nearly 20%, outperforming a broader crypto market that has struggled to maintain momentum. This reaction wasn’t driven by hype alone. It reflects a growing belief that Hyperliquid is evolving from a single-use trading venue into a multi-dimensional financial infrastructure.

Why Prediction Markets Matter in Crypto Right Now

Prediction markets have emerged as one of the most compelling onchain use cases of the last two years. From political elections to sports outcomes and macroeconomic events, these markets allow participants to express views on real-world outcomes in a transparent and capital-efficient way.

What makes them especially attractive is their ability to aggregate collective intelligence. Unlike traditional betting platforms, blockchain-based prediction markets operate without centralized control, offering verifiable settlement and open participation.

By integrating outcome-based trading directly into its layer-1 environment, Hyperliquid is tapping into this momentum at a time when user demand for alternative derivatives structures is accelerating.

How HIP-4 Changes the Game

The HIP-4 proposal introduces outcome contracts that behave more like bounded derivatives than traditional bets. Each position is fully collateralized from the start, meaning traders know their maximum risk and potential reward upfront.

There is no leverage involved, no margin calls, and no forced liquidations. This structure sharply contrasts with perpetual futures trading, where volatility can wipe out positions in seconds. Instead, HIP-4 markets settle within predefined ranges, making them accessible to a broader audience, including users who avoid high-risk leverage products.

Hyperliquid has described these instruments as “options-like,” but simplified enough to feel intuitive rather than intimidating.

Built on Hyperliquid’s Core Infrastructure

What makes this expansion especially notable is that it isn’t being bolted on as an external product. Prediction markets under HIP-4 are designed to run directly on HyperCore, the engine powering Hyperliquid’s layer-1 network.

Canonical markets will be denominated in USDH, Hyperliquid’s native stablecoin, ensuring tight integration with existing liquidity and settlement mechanisms. This design choice reinforces Hyperliquid’s vision of becoming a unified onchain trading hub rather than a collection of disconnected tools.

Although the feature is still in testnet and officially labeled a work in progress, the architectural direction is already clear.

Market Reaction Reflects More Than Speculation

HYPE’s price jump to around $37 wasn’t an isolated spike. It extended a rally that has already pushed the token up nearly 50% over the past month, even as much of the crypto market cooled off.

Investors appear to be pricing in more than short-term excitement. The integration of prediction markets aligns Hyperliquid with two high-volume sectors: onchain perpetuals and outcome-based trading. Both consistently generate hundreds of millions of dollars in daily volume across the crypto ecosystem.

This convergence strengthens the long-term utility narrative around HYPE, positioning it as a core asset within an expanding financial layer rather than a niche governance or incentive token.

FAQ

What is HIP-4 on Hyperliquid?

HIP-4 is a proposal that introduces outcome-based prediction markets on Hyperliquid, allowing fully collateralized contracts without leverage or liquidations.

Why did HYPE’s price increase so sharply?

The market reacted positively to Hyperliquid’s expansion into prediction markets, viewing it as a strategic move that strengthens long-term utility and demand.

How are these prediction markets different from regular perps trading?

They do not use leverage, margin calls, or liquidations. Risk and reward are capped from the start, making them more predictable and accessible.

Are prediction markets live on Hyperliquid now?

Not yet. The feature is currently being tested on testnet and is still under active development.

What role does USDH play in this system?

USDH is Hyperliquid’s native stablecoin and will be used to denominate canonical prediction markets, ensuring seamless settlement within the ecosystem.

The Broader Context: Perps Still Dominate Onchain Trading

Despite recent cooling from November’s all-time highs, decentralized perpetual futures remain one of crypto’s most liquid markets. Weekly trading volumes have stayed above $200 billion for several consecutive weeks, far exceeding levels seen at the start of 2025.

Hyperliquid has been a major beneficiary of this trend, and the addition of prediction markets could help stabilize engagement during periods when speculative leverage trading slows down. In effect, it diversifies user activity without abandoning the platform’s core strengths.

What This Means for Hyperliquid’s Long-Term Vision

Supporting HIP-4 signals that Hyperliquid is listening closely to its user base. According to the team, demand for outcome-based instruments and bounded risk products has been building for some time.

More importantly, this move opens the door to entirely new applications. From structured products to novel hedging tools, prediction markets could become foundational building blocks within Hyperliquid’s ecosystem rather than a standalone feature.

If successful, Hyperliquid may set a new standard for how decentralized exchanges evolve beyond simple trading venues.

Final Thoughts

HYPE’s sharp rally is a reflection of narrative alignment rather than pure speculation. Hyperliquid is expanding at the intersection of safety, innovation, and user demand — a combination that rarely goes unnoticed in crypto markets.

While the prediction markets feature is still under development, its potential impact is already reshaping how traders and investors view the platform. If execution matches ambition, Hyperliquid could emerge as one of the most versatile layer-1 trading ecosystems in the space.

Key Takeaways:

• Quantum computers using Shor's Algorithm could theoretically derive private keys from public keys on the Bitcoin network.
• "Satoshi Era" wallets (2009-2010) are most vulnerable because their public keys are exposed on the blockchain.
• New technologies like Zero-Knowledge STARKs and post-quantum cryptography are being developed to upgrade Bitcoin's defenses.

Bitcoin quantum risk is the ultimate "end of days" scenario for cryptocurrency investors. For over a decade, skeptics have warned that a sufficiently powerful quantum computer could crack the Elliptic Curve Cryptography (ECC) that secures the blockchain. If this happened, a hacker could theoretically derive private keys from public keys and steal funds.

For a long time, this was science fiction. But as we move through 2026, advances in quantum computing by companies like Google and IBM are moving us closer to this reality. To understand if your assets are safe, you first need to understand the machinery that protects them and the new technology threatening to break it.

How Does Bitcoin’s Security Actually Work?

To understand the threat, we have to look at the lock on the door. The Bitcoin blockchain is essentially a public ledger of transactions. To prove you own the Bitcoin at a specific address, you use a digital signature generated by a "Private Key."

This system relies on a mathematical relationship between your Private Key (which you keep secret) and your Public Key (which is visible). In the current model, it is easy to generate a Public Key from a Private Key.

However, going backward—calculating the Private Key from the Public Key—is effectively impossible. It would take a classical supercomputer millions of years to solve the math. This one-way mathematical street is the foundation of all crypto security.

How Does Shor's Algorithm Change the Game?

The engine behind the Bitcoin quantum risk is a concept called Shor’s Algorithm. Invented by Peter Shor in 1994, it is a method designed specifically for quantum computers to find the prime factors of integers at incredible speeds.

Quantum computers use "qubits" which can exist in multiple states simultaneously. This allows them to shortcut the math. Shor’s Algorithm turns the "impossible" calculation of deriving a Private Key into a task that could take just a few hours. If a computer can run this algorithm effectively, it breaks the one-way street, allowing hackers to unlock wallets without the password.

What Is Post-Quantum Cryptography?

The industry is not sitting idle. Developers are actively working on Post-Quantum Cryptography. This term refers to a new class of cryptographic algorithms that are secure against both quantum and classical computers.

Unlike current encryption which relies on factoring large numbers (which quantum computers are good at), post-quantum algorithms rely on complex mathematical problems like "lattice-based cryptography." These are problems that even a quantum computer cannot solve efficiently. Implementing these algorithms would render the quantum threat useless.

What Are Zero-Knowledge STARKs?

One of the most promising post-quantum solutions involves Zero-Knowledge STARKs (Scalable Transparent Arguments of Knowledge).

A STARK is a type of cryptographic proof. It allows one party to prove to another that they know a secret (like a private key) without revealing the secret itself. Crucially, STARKs rely on "hash functions" rather than elliptic curves.

Hash functions are resistant to quantum attacks. Because STARKs use this quantum-safe math, they are considered one of the best upgrades for the Bitcoin network. The company BTQ recently launched a testnet called "Preon" to demonstrate how these proofs can secure transactions against quantum threats.

Why Are Old Bitcoins Vulnerable?

Despite these solutions, Bitcoin quantum risk remains high for one specific group: early adopters. In 2009 and 2010, Bitcoin used "Pay-to-Public-Key" (P2PK) addresses.

In these old wallets, the Public Key is recorded directly on the blockchain. Because the Public Key is exposed, a quantum computer could attack it immediately. This puts the massive stash of Bitcoin held by Satoshi Nakamoto at risk.

Modern wallets (P2PKH) are safer because they "hash" the public key. Since quantum computers cannot reverse a hash, modern users are safe as long as they don't reuse addresses.

Conclusion

Quantum computers are coming, but they are not the death of crypto. They are simply the next hurdle in the evolution of digital security. By transitioning to post-quantum standards like ZK-STARKs, the industry is building a shield that even the most powerful computers cannot break.

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The Ultimate Crypto Liquidity Providers List (And Why You’re Probably Choosing Wrong)

Let's cut to the chase. You’re here because you’ve typed "crypto liquidity providers list  or  best crypto liquidity provider" into Google. Maybe you’re a startup founder launching the next big exchange. Perhaps you’re a seasoned trader tired of massive slippage eating into your profits. Or maybe you’re just asking the fundamental question: "Is crypto even liquid enough for me to trade seriously?

The answer is a resounding yes, but only if you connect with the right players behind the scenes.