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3 reasons why Kadena (KDA) price went on a 500% parabolic frenzy

diffrint by diffrint
November 9, 2021
in Market & Analysis
0
3 reasons why Kadena (KDA) price went on a 500% parabolic frenzy

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Proof-of-work (POW) blockchain networks had been all the craze within the early days of cryptocurrency when Bitcoin (BTC) set the usual for safety and different initiatives adopted swimsuit in varied makes an attempt to supply a sturdy, scalable community that may both assist funds of effectively transmit knowledge.

Most protocols have now shifted to proof-of-stake however Kadena (KDA), a scalable layer-one blockchain protocol remains to be working on the outdated proof-of-work mannequin. In line with the mission, the community is able to processing as much as 480,000 transactions per second due to using “braided chains”.

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Information from Cointelegraph Markets Pro and TradingView exhibits that  within the final two weeks, KDA worth has rallied 1,124% to a brand new document excessive at $25.94 on Nov. 7 as its 24-hour buying and selling quantity spiked from a every day common of $3 million to greater than $345 million.

KDA/USD 4-hour chart. Supply: TradingView

Three causes for the breakout in KDA worth embody the launch of wrapped KDA on the Ethereum (ETH) community, the rollout of nonfungible token initiatives, new change listings and the addition of assist for KDA staking.

Kadena joins the DeFi brigade

KDA not too long ago launched a wrapped model of its token referred to as wKDA which operates on the Ethereum community and permits it to work together with all EVM-compatible decentralized finance protocols.

The method was accomplished along side the CoinMetro change and can assist to create a brand new degree of token utilization for KDA, which thus far had not been in a position to cross the bridge into the interoperable world of DeFi.

As famous within the tweet above, the group behind Kadena additionally plans so as to add cross-chain assist for different blockchain networks like Terra, Polkadot, Celo and Cosmos.

NFT initiatives launch on Kadena

Another excuse for the elevated momentum seen in KDA was the addition of NFT capabilities to the community as a method to showcase the good contract potential to transact excessive demand objects whereas protecting charges low.

NFTs have been one of many hottest sectors within the cryptocurrency ecosystem and likewise seem like one of many major strategies for attracting new customers to a community so it isn’t stunning to see one more mission resort to this tactic.

One of many essential promoting factors for Kadena is its potential to supply low-cost transactions in a POW setting whereas nonetheless providing quick processing occasions.

The mission has additionally launched a “crypto gasoline station” function that permits companies to get rid of all transaction charges for his or her prospects by creating accounts that exist to fund gasoline funds on behalf of their customers below sure situations.

New change listings and staking alternatives

KDA has additionally obtained assist from cryptocurrency exchanges, together with a brand new itemizing on Crypto.com and CoinMetro gives KDA staking.

After formally reopening KDA staking capabilities on Nov. 3, CoinMetro noticed 730,000 KDA tokens deposited inside 20 minutes to completely faucet out the staking pool’s capability.

This means KDA holders are enthusiastic about yield alternatives and it might bode nicely for its integration into DeFi. wKDA may additionally contribute to lowering the circulating provide of KDA, which ideally would further purchase strain on the tokens’ worth.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it is best to conduct your individual analysis when making a call.