Kinetiq, the leading protocol in the Hyperliquid ecosystem with over a billion dollars in TVL, is set to introduce its governance token, KNTQ, on November 27th. This TGE (Token Generation Event) is highly anticipated in the DeFi sphere as 2025 comes to a close.
In a market where capital efficiency is paramount, Kinetiq has established itself as the essential infrastructure for liquid staking. The principle is fundamental to modern DeFi: enabling HYPE holders (the native token of the Hyperliquid Layer 1 blockchain) to secure the network while maintaining their liquidity.
In practical terms, by depositing their assets on the protocol, users receive kHYPE, a Liquid Staking Token (LST). This derivative not only allows them to capture staking yields, but also remains usable throughout the Hyperliquid DeFi ecosystem (lending, derivatives trading, yield farming).
The project’s fundamentals are impressive. With market dominance capturing approximately 75% of on-chain staking, Kinetiq displays a Total Value Locked (TVL) exceeding $1.6 billion. This massive adoption is explained by the native integration of HyperEVM and HyperCore technology, ensuring seamless transfers and full composability with partner protocols like Hyperlend or Pendle.
The KNTQ token is not merely a speculative asset; it constitutes the cornerstone of the protocol’s decentralized governance. Token holders will have the power to vote on critical updates, such as fee adjustments or reward distribution, thereby strengthening network decentralization.
The supply structure is capped at 1 billion tokens. The distribution was designed to align long-term interests between the team, investors, and community:
The official launch (TGE) is scheduled for November 27 at 12:00 UTC. Unlike traditional launches on CEX (Centralized Exchanges), Kinetiq prioritizes a native on-chain approach.
The token will be listed on the Hyperliquid Spot market. The distinctive feature of this launch lies in its exclusive pairing with USDH, the native stablecoin of the ecosystem, issued by Native Markets. This configuration leverages the Aligned Quote Asset (AQA) framework, which offers major structural advantages:
To position yourself on KNTQ from market opening, investors must interact directly with the Hyperliquid blockchain:
The arrival of the KNTQ token comes at a particular market juncture. The Hyperliquid ecosystem, while young (approximately one year old), is experiencing notable institutional traction. With HYPE currently trading between $30 and $35, correlation with the broader market remains strong.
If the launch proceeds without technical issues, KNTQ valuation could benefit from rapid price discovery. Analysts often compare Kinetiq to giants like Lido or Jito on other chains. With a TVL exceeding one billion, an initial Fully Diluted Valuation (FDV) between $250 million and $1 billion would seem consistent with sector standards. The future integration of USDH perps via the HIP-3 update could act as a powerful liquidity catalyst.
However, caution is warranted. Launching a token via massive airdrop (25% of supply) mechanically generates extreme volatility in the first hours. A portion of airdrop recipients will likely seek to take immediate profits, creating temporary selling pressure.
Nevertheless, such a leading Hyperliquid protocol at a $250 million market cap presents a unique opportunity. Caution will simply be required during the launch.
In conclusion, KNTQ represents a direct bet on the growth of the Hyperliquid ecosystem. For investors, the key will be to monitor the stability of the USDH peg and the market’s ability to absorb the initial distribution.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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