The Daily: HYPE fades as Hyperliquid experiences brief outage, Standard Chartered says ETH treasury firms could 10x holdings, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Tuesday! I’m back in the newsletter hot seat — and with the potential release of the White House crypto report tomorrow, Trump’s Aug. 1 tariff deadline, and key economic data on the horizon, it’s shaping up to be a big week.

In today’s newsletter, HYPE drops slightly as Hyperliquid experiences brief downtime and order execution issues, Standard Chartered says Ethereum treasury firms could 10x their holdings to 10% of all ETH, Linea unveils an 85% ecosystem allocation ahead of its much-anticipated token rollout, and more.

Meanwhile, eToro is launching tokenized U.S. equities, ETFs, and futures trading amid improved regulatory clarity.

Let’s get started.

HYPE fades as Hyperliquid experiences brief outage

Hyperliquid, a popular decentralized exchange built on its own Layer 1 blockchain, experienced about 20 minutes of downtime on Tuesday, during which multiple traders reported issues with trade execution.

• A representative on Hyperliquid’s official Discord server confirmed the service was back online and said the outage is under investigation, with further updates to follow.
• HYPE, Hyperliquid’s native token, dipped 3.75% to $43 during the incident before recovering slightly, according to The Block’s price page.
• One community member suggested an API malfunction caused issues with Hyperliquid’s frontends, leading to price divergence on the platform due to the inability to close positions.
• BasedApp, a trading platform built on Hyperliquid and backed by Delphi, Hashed, and Spartan, confirmed that order placement was disrupted but is now stable.
• Despite the glitch, Hyperliquid’s status page showed no reported issues, and the exact cause of the outage remains unknown.

Standard Chartered says Ethereum treasury firms could 10x holdings to 10% of all ETH

Ethereum treasury firms have rapidly accumulated 1.26 million ETH since June — about 1% of all ETH in circulation — according to Standard Chartered Global Head of Digital Assets Research Geoffrey Kendrick.

• Kendrick said this pace nearly matches the 2 million ETH inflows into Ethereum ETFs during the same period, marking the strongest buying streak on record for the funds.
• Furthermore, the analyst predicts Ethereum treasury holdings could grow tenfold to 10% of the total ETH supply, surpassing Bitcoin treasury companies’ current 4.4% share of BTC supply.
• He argues ETH treasuries are more attractive than BTC ones due to staking rewards and DeFi access — features ETFs still can’t tap.
• Firms like BitMine and SharpLink are leading the charge, with new entrants expected soon as regulatory arbitrage drives more public companies to adopt ETH strategies, Kendrick said.

Linea unveils native ETH yield, burn mechanisms ahead of token rollout

Consensys-founded Ethereum Layer 2 network Linea will introduce native ETH staking rewards, an ETH burning mechanism, and deflationary tokenomics ahead of its LINEA token launch.

• The project becomes the first Layer 2 to commit to burning ETH at the protocol level, with 20% of ETH transaction fees burned and the remaining 80% used to burn LINEA.
• An Ethereum-aligned consortium — including Consensys, Status, Eigen Labs, ENS Labs, and SharpLink (chaired by Consensys CEO Joe Lubin) — will manage 85% of the LINEA token supply through a 10-year ecosystem fund.
• The remaining 15% of the LINEA supply will be allocated to the Consensys treasury, subject to a five-year lockup.

Sen. Lummis introduces bill requiring Fannie Mae and Freddie Mac to consider crypto as an asset for mortgages

Sen. Cynthia Lummis has introduced the 21st Century Mortgage Act, which would require Fannie Mae and Freddie Mac to consider crypto as an asset in mortgage risk assessments.

• The bill aims to help younger Americans build wealth by allowing digital assets to count toward mortgage eligibility without requiring conversion to U.S. dollars.
• Lummis framed the proposal as a necessary modernization for government agencies in a digital era, emphasizing innovation and generational changes.
• Democratic lawmakers, including Sen. Elizabeth Warren and Sen. Bernie Sanders, pushed back on the proposal, warning that crypto volatility could endanger financial and housing market stability.

Billionaire investor Ray Dalio recommends 15% allocation to long-term assets like bitcoin

Ray Dalio, the billionaire founder of hedge fund heavyweight Bridgewater Associates, recommended investors allocate around 15% of their portfolios to long-term assets like gold or bitcoin to optimize risk-adjusted returns.

• Dalio warned of a looming “debt doom loop” across Western economies and said traditional currencies are likely to lose value relative to hard assets.
• While he favors gold over bitcoin, in a CNBC interview, Dalio acknowledged holding a small amount of BTC and called both assets “effective diversifiers” in times of economic crisis.

In the next 24 hours

• Eurozone GDP data are released at 5 a.m. ET on Wednesday. U.S. GDP figures follow at 8:30 a.m. The Federal Reserve’s latest interest rate decision is due at 2 p.m. A White House report on crypto is also expected tomorrow.
• A U.S. FOMC press conference is scheduled for 2:30 p.m.
• EigenLayer is set for a token unlock.

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