Hyperliquid is positioning itself as a competitor to conventional exchanges and prediction markets, as noted by FalconX. A recent report indicates that Hyperliquid is swiftly broadening its scope beyond cryptocurrencies, venturing into pre-IPO markets, prediction contracts, and continuous asset trading, which is raising alarms among Wall Street titans. What to know: — The crypto derivatives platform Hyperliquid is extending its reach beyond perpetual futures into pre-IPO trading, prediction contracts, and tokenized real-world assets, placing it in direct competition with traditional exchanges and prediction markets. — FalconX highlighted that Hyperliquid’s HIP-3 and HIP-4 markets, along with strong inflows into newly launched HYPE exchange-traded funds and a partnership with Coinbase and Circle regarding USDC, could significantly enhance the platform’s growth and revenue. — While regulatory actions in Washington may favor tokenized assets, FalconX cautioned that increasing interest from established players like CME and ICE is attracting scrutiny over possible manipulation risks, even as Hyperliquid leads in decentralized perpetual futures in terms of volume and total value locked. According to a new report from FalconX, the crypto trading platform Hyperliquid is beginning to rival traditional exchanges and prediction market operators as it expands beyond perpetual futures trading. Senior crypto market strategist David Lawant elaborated on how Hyperliquid’s recent forays into pre-IPO markets, prediction contracts, and tokenized real-world assets are broadening the platform’s appeal to traders beyond the crypto-native sphere. «Hyperliquid is gaining traction as interest in its HIP-3 markets grows to encompass pre-IPO markets,» the report stated. Hyperliquid initially gained momentum through crypto perpetual futures, a type of derivatives contract that dominates offshore digital asset trading. The platform’s native token, HYPE, has surged by 94% over the past three months. However, FalconX noted that newer offerings could place the platform in more direct competition with firms such as CME Group, Intercontinental Exchange-backed prediction market Kalshi, and Polymarket. The report indicated increasing activity in Hyperliquid’s HIP-3 markets, which enable users to trade assets including equities, commodities, forex, and pre-IPO contracts around the clock. FalconX pointed out that those markets attracted attention after traders used them to speculate on companies like Cerebras, Anthropic, and SpaceX prior to their public listings. The platform has also started launching HIP-4 outcome markets, which operate similarly to prediction markets by allowing traders to wager on binary outcomes related to political, economic, and crypto events. FalconX noted that the capacity to trade prediction contracts alongside crypto and real-world asset positions on the same platform could offer a significant competitive edge. «For instance, one could pair a HIP-3 perps position on NVDA with outcome markets that predict whether it will miss or exceed earnings,» the report mentioned. The firm also highlighted robust early interest in newly launched exchange-traded funds linked to Hyperliquid’s HYPE token. Spot HYPE ETFs from 21Shares and Bitwise have garnered a combined $53 million in inflows after just a few trading sessions, based on Bloomberg data referenced in the report. FalconX noted that these inflows accounted for a greater proportion of HYPE’s market capitalization than early inflows into spot bitcoin, ether (ETH), and solana (SOL) ETFs at similar stages. Meanwhile, Hyperliquid’s recent collaboration with Coinbase (COIN) and Circle (CRCL) to integrate USDC as an aligned quote asset could significantly boost protocol revenue. FalconX estimated that this arrangement could yield as much as $160 million in annualized revenue based on reserve yields linked to USDC balances on the platform. The report also highlighted that regulatory changes in Washington could help accelerate the adoption of tokenized real-world assets on decentralized trading platforms. FalconX cited reports indicating that the SEC is contemplating an innovation exemption framework for tokenized stocks. Concurrently, the firm warned that growing scrutiny from traditional financial exchanges could lead to regulatory oversight. CME and ICE have expressed concerns to regulators about potential manipulation risks associated with Hyperliquid’s markets. Nonetheless, FalconX reported that Hyperliquid continues to dominate decentralized perpetual futures markets in terms of trading volumes, revenue, and total value locked, establishing it as one of the fastest-growing trading platforms in the crypto sector.