A total of 7 HYPE LST protocols have staked over 38 million HYPE, accounting for 3.81% of the total HYPE supply, and the sector is still in its early stages.

Kinetiq is staking over 28 million HYPE, capturing over 70% of the market share in HYPE LST, and is the first protocol on HyperEVM to break a TVL of 1 billion dollars.

The combination of Kinetiq with Pendle and the lending protocol HyperLend and Morpho on HyperEVM is key. Pendle, HyperLend, and Morpho are now the first, second, and fourth largest holding entities of kHYPE, respectively. For example, the PT-kHYPE after yield splitting can be used as collateral for HyperLend, and the yield boost nesting path is very clear.

The future potential of HYPE LST depends on the demand from external developers to build partitioned markets on Hyperliquid after HIP-3. After the launch of Unit, the path for listing has been opened, with established distribution channels such as the mainstream wallet Phantom and the leading trading terminal Axiom. The listing + distribution path is clear, allowing developers to focus more on market construction itself.

HIP-3 requires external developers to stake 1 million HYPE, which can be seen as the basic threshold for LST. Currently, besides Kinetiq, the staking amount of stHYPE, Liquid HYPE, and Looped HYPE has exceeded 1 million HYPE. (If there are any omissions regarding launched HYPE LST, please feel free to inform me to supplement.)