Kraken has introduced kHYPE, a wrapped version of HYPE, according to an official announcement cited by Odaily. The exchange said kHYPE is backed 1:1 by HYPE held in Kraken custody, and the reserves can be verified on-chain. Kraken also said the wrapped asset can be used in DeFi applications on the Ink blockchain. Holders are able to redeem kHYPE back into HYPE at any time. The update centers on product availability and on-chain reserve transparency, with Kraken framing kHYPE as a wrapped asset tied directly to custodied HYPE.

Kraken has launched Wrapped HYPE on its Layer 2 network, INK, with the token named kHYPE, according to a post by HyperliquidNews on X. The update was presented as a brief market news item rather than a detailed product announcement. The post also noted that the kHYPE name could be confused with a token carrying the same name issued by Kinetiq. No additional rollout details, technical specifications, or listing information were disclosed in the source item. The report was published by Odaily as a 7x24 newsflash.

ChainFeeds’ Aug. 26 research brief brought together five separate discussions shaping the current crypto conversation: Michael Saylor’s argument that Bitcoin’s institutionalization does not betray its core principles; a Foresight News review of the latest market rebound and the sharp return of spot ETF inflows; Biteye’s rundown of meme and infrastructure projects inside the warming HyperEVM ecosystem; Arthur Hayes’ view that U.S. policymakers revert to liquidity expansion whenever the 10-year Treasury yield approaches 5%; and a BlockBeats take on why on-chain momentum still lags the broader market even as meme assets regain attention. The brief also listed several headline items, including reported bids for crypto custodian Copper below the previously cited $500 million level, RockawayX’s plan to raise $150 million for a crypto hedge fund, Kalshi’s roughly $1.12 billion raised through equity financing, Arthur Hayes’ planned FLOP tokenomics infographic and AMA, and a Caixin report on Zhou Guren, identified there as the largest backer of Trump family crypto project WLFI. Across the five featured pieces, the publication framed the current moment as one where macro policy, regulated products, institutional structures, and meme-driven user acquisition are all moving into the same field of view.

HYPE climbed above $80 on Aug. 22 and set another all-time high, drawing capital and attention back to the Hyperliquid ecosystem. That rebound also revived meme trading on HyperEVM, where egg and joff briefly emerged as high-market-cap tokens. The bounce, however, highlighted an old problem: HyperEVM has retail demand, but it still lacks a trading infrastructure layer that can keep pace with speculative activity, token launches and more complex onchain financial applications. Kinetiq, currently the largest liquid staking protocol on Hyperliquid with about $1.214 billion in TVL, says it wants to fill that gap with Elysium, a planned Layer 2 for Hyperliquid. Under the design outlined by Kinetiq, Elysium would keep HYPE as its gas token, aim for block speed and throughput several orders of magnitude above HyperEVM at launch, and expand the existing L1 Read connection to HyperCore so developers can access deeper order book data and fresher pricing. The project is framed as more than a performance upgrade. Kinetiq says Elysium could create a full token lifecycle inside the ecosystem, starting with issuance on Elysium, then routing liquidity through long-tail AMMs and Prop AMMs, later into HyperCore spot order books, and finally into perpetual markets through HIP-3. The team also pointed to use cases such as PaperTrade, options, automated trading systems and lending protocols that require real-time hedging and frequent state updates.

Kinetiq, a liquid staking protocol in the Hyperliquid ecosystem, said on Aug. 24 that it is launching Elysium, a high-performance Layer 2 network built specifically for Hyperliquid. The announcement sent KNTQ up more than 30% in short-term trading, with its fully diluted valuation briefly reaching $270 million. According to PANews, the launch is aimed at a long-running imbalance inside Hyperliquid, where perpetuals have led the market while spot trading and DeFi applications have lagged behind. Elysium is designed to offer a higher-throughput execution environment and let PropAMM-style applications access HyperCore order book data directly. PANews said the goal is to connect token issuance, AMM liquidity bootstrapping, the HyperCore spot market, and the HIP-3 perpetual market into one asset path. Instead of introducing a separate gas token, Elysium will use HYPE as gas, a choice tied to ecosystem coordination and asset composability across HyperCore, HyperEVM, and Elysium. The move also gives Kinetiq a potential new revenue line at a time when its core liquid staking business is under pressure. Kinetiq’s TVL is above $1.2 billion, but protocol revenue over the past 30 days was only $200,000, while kHYPE circulating supply was down about 66% year over year versus last September, PANews reported. Under the disclosed model, 50% of sequencer revenue will go to KNTQ buybacks and burns. PANews said the market now needs to watch hard metrics including daily active users, transaction count, gas consumption, spot volume, HyperCore liquidity migration, and actual sequencer revenue.

A whale address deposited two HYPE-linked staking assets into HyperLend and then borrowed USDC against the position, according to on-chain tracker Onchain Lens. The wallet supplied 873.16K wstHYPE, valued at about $47.37 million, and 627.81K kHYPE, valued at roughly $33.71 million. That brought the total collateral posted on the protocol to around $81.07 million. After opening the collateral position, the address borrowed $20.57 million in USDC. Onchain Lens said the position was showing a health factor of 2.91 at the time of monitoring, with net equity of about $60.50 million. The transaction was cited by BlockBeats in a report published on Aug. 3. The disclosed figures describe the size of the collateral, the amount borrowed, and the risk metric attached to the position, without adding any further details about the owner of the wallet.

Onchain Lens said a whale deposited two HYPE-linked assets into Hyperlend before taking out a large USDC loan. The address moved 873,160 wstHYPE worth about $47.37 million and 627,810 kHYPE worth about $33.71 million onto the platform. After those deposits, it borrowed 20.57 million USDC. The monitored transaction points to a sizeable leveraged position or liquidity move on Hyperlend, though no further details about the wallet owner were disclosed in the source. The figures cited in the report come directly from Onchain Lens monitoring data referenced by ChainCatcher.

PANews’ daily roundup covered a wide range of crypto market and on-chain developments, led by two high-profile incidents tied to social media accounts and meme tokens. According to the report, hackers who compromised the official X accounts of SpaceXAI and Starlink used them to promote the $SCATMAN token and made a combined profit of about $135,000. The same roundup also said the accounts had reposted a Robinhood Chain meme coin that briefly pushed its market cap to $2 million before a rug pull, with the posts later deleted. Robinhood Chain itself reached several milestones since launch, including more than $290 million in stablecoins attracted to the network, $134 million in total value locked, $12 million in active RWA market cap, and $4 billion in cumulative DEX trading volume. Separately, Robinhood co-founder Vlad Tenev reportedly exposed a seed phrase during a livestream, allowing attackers to seize control of an address and use it to inflate and dump meme tokens. The roundup also highlighted broader market data. U.S. spot Bitcoin ETFs recorded a net inflow of $197 million last week, ending eight straight weeks of outflows. A dormant whale moved 2,931 BTC worth about $188 million, while Galaxy Digital’s head of research said four long-term holder indicators had reached record highs.