Kinetiq Launches Elysium, a New Layer 2 Built for Hyperliquid’s HyperEVM

The new network uses HYPE as its gas token and aims to extend Hyperliquid's on-chain infrastructure. Kinetiq has unveiled Elysium, a layer-2 network built to work alongside Hyperliquid's HyperEVM. The announcement was reported across multiple outlets in late August 2026, marking a new step in Hyperliquid's expanding technical stack. Elysium uses HYPE, Hyperliquid's native token, as its gas currency. This design choice ties the new layer directly into Hyperliquid's existing token economy. Users transacting on Elysium will pay fees in HYPE rather than a separate native asset, a structure common among layer-2 networks that want to reinforce demand for their base-layer token. Hyperliquid has built a reputation as a fast-growing decentralized derivatives exchange, and its HyperEVM component allows developers to build smart-contract applications on top of the same infrastructure. Kinetiq's Elysium appears intended to extend that developer environment further, offering another execution layer that can process transactions while settling back to Hyperliquid's core systems. Details on Elysium's specific technical architecture, throughput, or launch timeline were not disclosed in the initial announcements. Coverage from Bankless, Crypto Economy, and CryptoBriefing confirmed the core facts: a new L2 named Elysium, built by Kinetiq, using HYPE for gas, and designed to work with HyperEVM. Beyond these points, further specifics about validator design, sequencing, or interoperability with other chains have not yet been made public. Kinetiq's move fits into a broader pattern within crypto infrastructure, where projects build additional layers on top of established base chains to add functionality without competing directly for liquidity. By anchoring Elysium's gas mechanism to HYPE, Kinetiq positions its new chain as complementary to Hyperliquid rather than a rival network. This kind of integration can also simplify user experience, since participants already holding HYPE would not need to acquire a new token to interact with Elysium. The timing of the announcement, coming as Hyperliquid continues to draw attention for its exchange volumes and expanding EVM compatibility, suggests Kinetiq is aiming to capture developer interest while the underlying platform is still growing its ecosystem. Layer-2 launches tied to major derivatives platforms have become more common as teams look to offer additional throughput or specialized environments without fragmenting liquidity away from the main chain. Market Impact The introduction of Elysium could reinforce demand for HYPE if the token becomes the standard gas asset across an expanding set of applications tied to Hyperliquid. Analysts often watch such integrations for signs of increased on-chain activity, since additional layers can drive more transactions denominated in a base token. For Hyperliquid's broader ecosystem, a new L2 focused on HyperEVM could attract developers seeking infrastructure that ties directly into an already active trading platform.