Thursday, August 11, 2022

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

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Proof-of-work (POW) blockchain networks have 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 will both help funds of effectively transmit information.

Most protocols have now shifted to proof-of-stake however Kadena (KDA), a scalable layer-one blockchain protocol continues to be working on the previous proof-of-work mannequin. In keeping with the undertaking, the community is able to processing as much as 480,000 transactions per second because of the usage of “braided chains”.

Information from Cointelegraph Markets Pro and TradingView exhibits that  within the final two weeks, KDA price has rallied 1,124% to a 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.

<em>KDA/USD 4-hour chart. Supply: TradingView</em>

Three reasons for the breakout in KDA price embrace the launch of wrapped KDA on the Ethereum (ETH) community, the rollout of nonfungible token initiatives, new change listings and the addition of help for KDA staking.

Kadena joins the DeFi brigade

KDA just lately 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 new degree of token utilization for KDA, which up to now had not been capable of 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 help for different blockchain networks like Terra, Polkadot, Celo and Cosmos.

NFT initiatives launch on Kadena

One more reason for the elevated momentum seen in KDA was the addition of NFT capabilities to the community as a approach to showcase the sensible contract potential to transact excessive demand objects whereas conserving 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 shocking to see one more undertaking resort to this tactic.

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

The undertaking has additionally launched a “crypto gasoline station” characteristic that enables companies to get rid of all transaction charges for his or her clients by creating accounts that exist to fund gasoline funds on behalf of their customers underneath sure situations.

New change listings and staking alternatives

KDA has additionally obtained help from cryptocurrency exchanges, together with a 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 may bode properly for its integration into DeFi. wKDA may additionally contribute to decreasing the circulating provide of KDA, which ideally would extra purchase strain on the tokens’ price.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you need to conduct your personal analysis when making a choice.