2022-4-8 12:08 |
The Kava (KAVA/USD) price jumped sharply on Friday as investors cheered the growth of its ecosystem. The coin is trading at $4.78, which is about 86% above the lowest level on February 24th. Its market cap has risen to more than $822 million, making it one of the leading cryptocurrencies in the world.
What is Kava and why is it rising?Kava is a unique blockchain project that uses the Tendermint consensus to boost its transaction speeds and lower costs.
The network then uses two unique blockchain platforms that have their strengths. First, it has an Ethereum co-chain, which is the biggest platform used by developers. Second, it has the Cosmos co-chain that promotes interoperability of its applications. These two co-chains are then linked together by the Tendermint consensus.
By joining Ethereum and Cosmos, Kava has combined two of the most useful forces in the industry. Ethereum is powerful because it has been embraced by most developers. For example, in DeFi, the network has a total value locked of $122 billion, meaning that it has a dominance of over 52%.
Cosmos, on its part, is an important platform that has been used to build prominent ecosystems like Terra, Thorchain, and Osmosis. It also owns Terra UST, one of the biggest stablecoins in the world.
Terra’s ecosystem is made up of the leading platforms in the industry. It has partnered with Chainlink, which provides price feeds for its DeFi platform. Other partners are Akash, Celer Network, and Nervos among others.
According to DeFi Llama, Kava has a TVL of over $652 million. The three DeFi apps built in its ecosystem are Kava, Kava Lend, and Kava Swap. This ecosystem will likely keep growing because of Kava Rise, a $750 million developer incentive program. These funds will come from block rewards. 62.5% of KAVA emitted per block is allocated to developers while the rest goes to staking rewards.
Kava price predictionLike most cryptocurrencies, KAVA declined sharply in the first quarter of the year. At the time, it reached a key support at $2.550. Now, it has started a bullish trend and is approaching the 50% Fibonacci retracement level. It has also moved slightly above the 25-day moving average. A closer look shows that it has struggled to move above the descending trendline shown in green.
Therefore, more upside will be confirmed if KAVA manages to move above this trendline. Unless that happens, we should assume that the coin is still in a bearish trend.
The post Kava price prediction: Rebound faces strong resistance appeared first on Invezz.
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