Hyperliquid Challenges Polymarket as XRP Sentiment Explodes — What Comes Next?

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• Hyperliquid is entering the prediction market space with a trader-friendly fee model.
  
• XRP sentiment has surged following Rakuten integration, signaling growing adoption.
  
• Short-term hype may not translate into immediate price gains, with caution advised.

The crypto market is seeing two parallel developments that highlight shifting momentum across trading infrastructure and investor sentiment. While Hyperliquid is moving aggressively into prediction markets with a new fee model, XRP is experiencing a sharp spike in bullish sentiment following a major adoption update tied to Rakuten.

Together, these trends point to a market evolving both in utility and investor psychology.

Hyperliquid Targets Prediction Market Leaders

Hyperliquid has introduced a detailed fee structure for outcome token trading on its testnet, marking a strategic step into the fast-growing prediction market space. The model, backed by HyperCore’s support for HIP-4, applies fees only when positions are closed or settled—removing upfront costs for traders.

The framework outlines six trading scenarios. Minting outcome tokens carries no fees, while standard trades may charge only makers—or none at all. In burn scenarios, fees can apply to both sides or just the taker. Settlement payouts are distributed proportionally, aligning incentives with final outcomes.

This design lowers entry barriers while still ensuring revenue at exit points. It also places Hyperliquid in direct competition with established players like Kalshi and Polymarket, which currently dominate a sector that recently surpassed $27 billion in monthly volume.

Meanwhile, Coinbase has also entered the space through a partnership with Kalshi, signaling rising institutional interest and intensifying competition.

XRP Sentiment Hits Two-Year High

At the same time, XRP is seeing a surge in positive social sentiment. According to analytics firm Santiment, bullish commentary has reached its second-highest level in two years.

The catalyst appears to be Rakuten Wallet’s integration of XRP, which enables millions of users in Japan to convert loyalty points into the token. This expands XRP’s real-world utility and introduces it to a broader retail audience.

However, the spike in optimism comes with caution. Santiment notes that such sentiment peaks often signal short-term overheating rather than immediate price breakouts. Similar patterns in recent months were followed by price pullbacks.

Short-Term Hype vs Long-Term Growth

Despite the current enthusiasm, historical trends suggest that XRP’s price may not immediately reflect the positive news. Analysts point out that markets often digest major developments over time, with price gains materializing after initial hype fades.

Also Read: Hyperliquid Bulls Take Control: Can HYPE Break $50 Next?

Seasonality adds another layer of uncertainty. While average returns for May appear strong, median data suggests a higher likelihood of flat or negative performance. Broader macro conditions will also play a key role in shaping XRP’s trajectory.

Hyperliquid’s entry into prediction markets and XRP’s sentiment surge reflect a market in transition—one driven by innovation on one side and adoption narratives on the other. While short-term excitement is evident, both stories underline a more important theme: sustainable growth in crypto often depends on long-term utility and market maturity, not just immediate hype.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.