Hyperliquid Suddenly Opens Prediction Market... "Bets on Fed's Interest Rate Decision and CPI Announcement"

▲ Prediction Market/ChatGPT generated image

Decentralized derivatives exchange Hyperliquid has opened a macroeconomic prediction market. As institutional investors' exchange-traded fund (ETF) funds flowed in, its native token price recorded an all-time high.

According to crypto media outlet Coingape on May 26 (local time), virtual asset leverage trading platform Hyperliquid launched a prediction market based on off-chain real-world events. The first supported targets are the year-over-year May Consumer Price Index (CPI) and whether the federal funds rate will change at the June Federal Open Market Committee (FOMC) meeting. Hyperliquid stated that this HIP-4 prediction market uses the stablecoin USDC as its base asset.

According to Hyperliquid data, the Consumer Price Index prediction market recorded a trading volume of $8,000 and open interest of $48,000. In contrast, the June Fed interest rate change prediction market showed a trading volume of $600 and open interest of $13,200. Platform validators have agreed to add a sports market predicting the results of the UEFA Champions League final. The blockchain daily Bitcoin (BTC) price change prediction market secured a trading volume of $578,000 and open interest of $180,000.

This new service expansion is based on the previous HIP-3 upgrade, which supports commodity and stock trading. This market emerged as an alternative platform after the start of the US-Iran conflict, and its open interest has reached an all-time high. As the prediction market became active, the price of Hyperliquid Token (HYPE) recorded an all-time high of approximately $65 on this day. Since the launch of its own HYPE exchange-traded fund (ETF), institutional investor demand has flowed in, and the token price remains in the price discovery phase.

Grayscale, a virtual asset ETF issuer, has been observed accumulating its native tokens in preparation for product launches. Bitwise, which has already launched an ETF, additionally purchased 162,367 HYPE, worth $1 million, on this day alone. As a result, the issuer secured a total of $40 million worth of Hyperliquid tokens as assets under management within a week of the product launch.

Hunter Horsley, CEO of Bitwise, announced that the trading volume of the virtual asset ETF surpassed $12 million within two hours of the market opening on this day. CEO Horsley stated, "Investors are looking for investment exposure to Hyperliquid."

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