layer2

Most traders focus on price swings. Smart money watches the flow of institutional capital into layer‑2 rollups instead.
The signal: Standard Chartered’s latest research now projects that Arbitrum ($ARB ) could rise 70× by 2030, driven by a surge in tokenized stock liquidity and the Bitcoin Reserve’s expansion. On-chain data shows a 45% jump in $ARB liquidity over the past month, while whale activity in the $ARB /USDC pool has doubled. #ARB #Layer2 #InstitutionalCrypto
Interpretation: If tokenized equities continue to flood Arbitrum, the demand for $ARB as a bridge and settlement layer will skyrocket. The 70× forecast isn’t a speculative hype; it’s rooted in the projected $10 trillion tokenized equity market and the $5 trillion Bitcoin Reserve, both of which will funnel liquidity through Arbitrum’s cheaper, faster transactions. Price could see a sustained upward drift as institutional flows lock in.
Watch list: Keep an eye on the $ARB /USDC liquidity pool size and the daily volume of tokenized stock trades on Arbitrum. A sudden spike in either could signal the next rally. #ArbitrumWatch
Thought closer: If you’re looking for a layer‑2 that’s poised to dominate the next decade, is $ARB the one you’re overlooking?

Hyperliquid built one of the strongest on-chain perpetuals markets in crypto. Its EVM layer, however, faces a different problem: how do you give developers more execution capacity without separating them from the liquidity, assets and market infrastructure that made #Hyperliquid valuable in the first place?
That is the gap Kinetiq is stepping into with Elysium, and it is the part of the announcement I find most interesting. As I dug deeper into the architecture, I became less interested in the headline throughput numbers and more interested in the economic design underneath them. Elysium is not simply trying to become another #Layer2 . It is trying to create more execution capacity inside the existing Hyperliquid economy.
Who Is Building Elysium?
Kinetiq already has an established position within Hyperliquid through kHYPE and its liquid-staking infrastructure. Elysium represents a significant expansion of that role, moving from infrastructure around $HYPE staking into execution infrastructure designed for applications that need substantially more capacity than HyperEVM can comfortably provide today.
HyperEVM's architecture deliberately keeps execution closely composed with HyperCore, but that design also creates a throughput trade-off. Elysium is intended to address that constraint by providing a higher-throughput EVM environment while preserving the connection to Hyperliquid's native settlement and market infrastructure.
For @kinetiq_research, that makes the move particularly interesting. The company is no longer positioning itself only around what happens to HYPE after users stake it. Elysium puts Kinetiq much closer to the applications, transactions and markets that could generate another layer of activity across the Hyperliquid ecosystem.
What Elysium Actually Changes
Three parts of the design stand out to me.
1. HYPE Becomes the Gas Asset
Elysium uses HYPE as its native gas token instead of introducing another token for transaction fees. That keeps the economic relationship between HyperCore, HyperEVM and Elysium much tighter.
Users are not being asked to learn another gas economy, while HYPE gains another utility beyond staking, collateral and trading. More importantly, the choice reflects the broader design philosophy: Elysium is meant to extend Hyperliquid rather than create a parallel economy beside it.
That is a subtle but important distinction for any #DeFi ecosystem. Adding an execution layer is easy to describe. Adding one without unnecessarily fragmenting the assets and liquidity around it is considerably harder.
2. More Execution Capacity Without Abandoning HyperCore
Elysium is designed as a high-performance EVM environment using the Arbitrum Orbit and Nitro stack, with a target of 300 Mgas/s and 100–200 ms blocks.
But speed alone is not the interesting part.
The more important question is what that execution environment can access. Elysium is designed to bring HyperCore market information deeper into the EVM environment, including order books, prices, balances and positions, alongside market data such as depth, flow imbalance and expected slippage.
This becomes particularly interesting for PropAMMs. Professional market makers could quote on Elysium while accessing HyperCore market data at high frequency, creating a tightly connected execution and hedging environment that is difficult to reproduce across completely separate chains.
Instead of treating HyperCore as a distant liquidity source that applications constantly have to synchronize with, Elysium is designed to reduce the distance between EVM applications and Hyperliquid's native market infrastructure.
For builders working on trading systems, PropAMMs and other latency-sensitive applications, that distinction could matter more than the raw throughput headline.
The interesting proposition is therefore not simply that Elysium is faster. It is that Elysium is designed to make higher-throughput execution and Hyperliquid-native market infrastructure work together.
3. A Complete Token Lifecycle
The third piece is the path from token creation to deeper liquidity.
The intended lifecycle allows a project to begin on Elysium, bootstrap activity through a long-tail AMM, move into deeper PropAMM liquidity, mirror its token through HyperEVM, and potentially progress into a HyperCore spot market and eventually a HIP-3 perpetual market.
That creates something more interesting than another token-launch chain. A project does not necessarily have to choose between an EVM environment and Hyperliquid's native market structure. The intended path connects the two.
Elysium therefore becomes part of a broader #Elysium lifecycle: launch and bootstrap activity on Elysium, move through HyperEVM, reach HyperCore spot infrastructure, and potentially progress toward HIP-3 perpetual markets.
The significance is easy to miss. Elysium is not being positioned as an isolated chain where projects must build their own liquidity universe from scratch. It is being designed as an entry point into a larger market infrastructure that already exists.
The Sequencer Fee Model Is the Real Story for KNTQ
The architecture answers the execution problem, but the sequencer-fee model answers a different question: where does the economic value created by that execution go?
The proposed allocation is straightforward. Fifty percent of Elysium sequencer revenue goes toward open-market KNTQ purchases, while 25% goes to builders and 25% to Kinetiq's treasury. The purchased KNTQ is then sent to the Hyperliquid Assistance Fund for permanent removal from supply.
That creates a direct relationship between network activity and KNTQ. More Elysium activity can generate more sequencer revenue, which can increase the capital allocated toward KNTQ purchases. The mechanism therefore creates a potential connection between network usage and token supply reduction.
That is what makes the #Kinetiq value-accrual argument worth examining.
But I would make an important distinction here: a value-accrual mechanism is not the same thing as guaranteed value accrual.
The mechanism is clear. Its eventual economic significance depends on adoption. If Elysium generates little activity, the resulting revenue will also be limited. If developers build on it, traders use it, market-makers deploy on it and transaction volume becomes substantial, the same mechanism has a much larger economic effect.
That is why I think the real story is not the 50% number by itself. The real story is whether Elysium can turn additional execution capacity into sustained economic activity.
Where I Would Push Back
Elysium is still pre-launch, and that distinction matters.
Kinetiq has published a technical design covering the execution stack, target throughput, block times, gas asset and settlement architecture. But those are specifications for a network that has not yet demonstrated those targets under production conditions.
The same discipline applies to HyperCore integration. The architecture is designed around deeper access to HyperCore state and, in later stages, the ability for applications to interact with HyperCore through the planned interfaces. Those capabilities should therefore be understood as part of the roadmap rather than treated as already-proven production infrastructure.
That does not invalidate the design. It simply means we should separate what Elysium is designed to do from what Elysium has already proven it can do.
A 300 Mgas/s target is interesting. 100–200 ms blocks are interesting. Native HyperCore connectivity is interesting. But none of those specifications become an economic advantage until developers and users actually put sustained demand through the system.
For me, that is not a weakness in the thesis. It is the test of the thesis.
The Bigger Experiment
Elysium is attempting to solve a very specific infrastructure problem for Hyperliquid.
HyperEVM provides the connection to the ecosystem. Elysium adds a higher-throughput execution environment. HyperCore provides the native market infrastructure. The token lifecycle creates a path from Elysium applications into Hyperliquid's deeper liquidity structure. And the sequencer-fee model attempts to route part of the resulting economic activity back toward KNTQ, builders and the treasury.
That creates a simple but important loop:
Give builders more room to work, and applications follow. Applications bring activity. Activity feeds the sequencer, and the sequencer feeds value back into the system it came from.
Whether that loop becomes meaningful will depend on what gets built on Elysium and how much activity it attracts.
That is ultimately what I will be watching.
Elysium does not need to prove that another Layer 2 can exist. It needs to prove that an additional execution layer can extend Hyperliquid's economic surface area without fragmenting the ecosystem underneath it.
If it succeeds, the interesting achievement will not simply be faster blocks. It will be turning additional execution capacity into additional economic activity while keeping that activity connected to Hyperliquid.
And that, in my view, is the real Elysium experiment.
Continue the discussion:
Official resources: kinetiq.xyz
X Thread: https://x.com/Cryptfancier/status/2101422783909499044

The quest to scale Ethereum without compromising its foundational security has long found its most elegant answer in zero-knowledge technology, and ZKsync stands at the forefront of this frontier with its native utility asset, $ZK . Designed by Matter Labs, this token fuels an expanding network of ZK Chains known as the Elastic Network, unlocking lightning-fast, hyper-scalable, and mathematically verified execution.
At its core, ZKsync leverages advanced zk-Rollups to bundle hundreds of off-chain transactions into a single succinct validity proof verified directly on Ethereum. The ZK token serves as the primary governance engine, protocol fee abstraction currency, and staking asset designed to align long-term network participants. Through the ZK Stack framework, enterprises and decentralized applications can deploy custom, sovereign ZK Chains that interoperate seamlessly, driving structural token demand through cross-chain settlement and shared liquidity pools.
Real-world utility shines through its institutional-grade implementations, such as the Prividium permissioning engine and tokenized real-world asset platforms currently being explored by global banking institutions. Upgradability is engineered into the protocol via modular smart contract architecture, allowing seamless transitions-such as the deprecation of legacy Lite infrastructure toward unified Elastic Chain interoperability. Completely bypassing traditional hardware mining and halving cycles, security is anchored by Ethereum’s underlying Proof-of-Stake validator base and advanced zkVM proof generation systems like Airbender.
Long-term market analysts view ZKsync as a cornerstone infrastructure play within the Ethereum ecosystem, acknowledging its cutting-edge cryptographic engineering while carefully monitoring scheduled linear token vesting schedules. Supported by a deeply technical developer community and expanding institutional adoption, ZK embodies the shift toward a unified, private, and boundless multi-chain web.
#ZKsync #Layer2 #ZeroKnowledge #CoinVahini