Kinetiq, a burgeoning liquid staking protocol linked to Hyperliquid’s HYPE token, is experiencing a remarkable surge in user activity following the launch of its airdrop points campaign. The total value locked (TVL) in Kinetiq has skyrocketed from approximately $458 million in mid-July to a staggering $2.1 billion as of now, according to data provided by DefiLlama.
This meteoric rise can be attributed not only to a substantial 20% increase in the pricing of HYPE during this same period, but also to a significant uptick in direct deposits. The amount of HYPE tokens staked has seen a fourfold increase, growing from under 10 million tokens in July to nearly 40 million today. The introduction of Kinetiq’s points program, which commenced in mid-July, is a critical factor driving heightened activity across its ecosystem.
The rapid accumulation of deposits underscores Kinetiq’s emerging status within the decentralized finance (DeFi) landscape, as it garners increasing liquidity, trading volume, and demand for staking within its platform. Points programs, in particular, have proven to be particularly appealing to yield-seeking crypto investors. By staking HYPE through Kinetiq, users are not only eligible for standard staking rewards but also for points that could lead to future allocations of a potential Kinetiq token airdrop.
The dual opportunity for yield that Kinetiq offers has captured the attention of many DeFi traders, who have vocalized their enthusiasm on platforms like X. As Kinetiq continues to evolve and attract a growing user base, it further solidifies Hyperliquid’s position as a formidable player in the decentralized finance arena.
