Key takeaways
Why is Hyperliquid’s HIP-3 upgrade a game changer?
It allows anyone to deploy their perpers market on Hyperliquide, from prediction markets to on-chain stocks.
Will this benefit HYPE’s stock?
Yes, high growth will incur more fees and make HYPE redemption easier.
Hyperliquid (HYPE) has rolled out the highly anticipated upgrade that analysts say will help realize its “everything exchange” vision.
The upgrade, also known as HIP-3 (Hyperliqiuid Improvement Proposal 3), will enable permissionless perpetual markets by third-party builders on the platform.
Think of it as a marketplace, like an app store, but for criminals, and it’s more decentralized. Users can then choose what and where to trade, but under the hood they will be using Hyperliquid.
From on-chain stock trading to prediction markets and everything in between, HIP-3 enables it all. Reacting to the update, Ryan Watkins, a mega HYPE bull and founder of VC Syncracy Capital, said,
“Christmas came early at Hyperliquid. Now loading, trading everything.”
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Long-term impact on HYPE
Speculation and stablecoins have become key narratives of this cycle. The recent explosion of the perp DEX has further reinforced this phenomenon.
For those unfamiliar, perps or perpetuals allow traders to increase their position and potential gains with limited capital. But the loss can also get worse.
At the time of writing, Trade XYZa criminal who trades stocks, and Possiblewhich allows users to trade pre-IPO companies with 10x leverage, has gone live on the platform.
If the demand for HIP-3 increases, the trading volume on the Hyperliquid infrastructure increases. This results in higher fees that help redeem HYPE tokens.
Overall, value accumulation could increase HYPE value if the players deployed by manufacturers become more widespread.
In addition, each builder must stake 500,000 HYPE before launching on the platform. This adds to the buying pressure and flywheel that ultimately benefits HYPE holders.
Despite this, the 500K HYPE has been considered expensive by some analysts, especially if the market does not recover. In addition to this, the issue may be cut if the manufacturer does not comply with the chain requirements.
“To ensure high-quality markets and protect users, deployers must maintain a staked HYPE of 500,000. In the event of a malicious market operation, validators have the power to reduce the deployer’s stake through a stakes-weighted vote.”
That said, Hyperliquid has remained dominant in the on-chain perp DEX space. At press time, he had $8.24 billion in Open interest (OI), while Lighter, ranked second with $1.44 billion.
HYPE’s market position and outlook
Based on Bitcoin (BTC) perps alone, Hyperliquid class fourth in terms of OI compared to other largest centralized exchanges.
Source: Bike
In the meantime, Polymarket only assessed a 32% chance that HYPE price would hit a new high of $70 by the end of the year.
It remains to be seen how HYPE will balance the upgrade and impending developments. unlock token expected to start next month.
