Kinetiq, a liquid staking platform built on the Hyperliquid blockchain, launched its KNTQ governance token in November. The token is currently trading at $0.13, marking a nearly 19% increase over the past 24 hours on trading volume of $27.7 million.

This price gives the token a market capitalization of $35.3 million and implies a fully diluted valuation (FDV) of approximately $130 million. According to the project’s token economics, 25% of the supply is allocated to early users, with 30% reserved for protocol growth and rewards. The remaining portion is designated for contributors, investors, and the Kinetiq Foundation.

Platform Growth and TVL Fluctuation

Liquid staking protocols like Kinetiq allow users to lock up their tokens to secure a network and earn rewards while receiving a liquid token that can be used elsewhere in the ecosystem. Kinetiq’s main product, kHYPE, represents a liquid version of staked HYPE, enabling users to maintain asset utility while earning staking yields.

After launching in late 2024, Kinetiq experienced rapid growth, becoming the largest protocol on Hyperliquid by total value locked (TVL). However, the platform’s TVL has since declined significantly, falling about 60% from a peak of $2.63 billion in early October to its current level of $1.1 billion.

This sharp decrease is likely driven by “airdrop farmers”—users who had staked assets to qualify for the token launch—unwinding their positions now that the KNTQ token has been distributed.