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 fad within the early days of cryptocurrency when Bitcoin (BTC) set the usual for safety and different tasks adopted swimsuit in varied makes an attempt to supply a sturdy, scalable community that will both help 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 previous proof-of-work mannequin. Based on the undertaking, the community is able to processing as much as 480,000 transactions per second because of using “braided chains”.

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Knowledge from Cointelegraph Markets Pro and TradingView reveals 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 each 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 embrace the launch of wrapped KDA on the Ethereum (ETH) community, the rollout of nonfungible token tasks, new trade listings and the addition of help 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 trade and can assist to create a brand new stage 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 staff behind Kadena additionally plans so as to add cross-chain help for different blockchain networks like Terra, Polkadot, Celo and Cosmos.

NFT tasks launch on Kadena

One more reason for the elevated momentum seen in KDA was the addition of NFT capabilities to the community as a strategy to showcase the good contract potential to transact excessive demand gadgets whereas holding 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 most important promoting factors for Kadena is its potential to supply low-cost transactions in a POW setting whereas nonetheless providing quick processing instances.

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

New trade listings and staking alternatives

KDA has additionally acquired help from cryptocurrency exchanges, together with a brand new itemizing on Crypto.com and CoinMetro presents 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 also contribute to decreasing the circulating provide of KDA, which ideally would further purchase stress on the tokens’ worth.

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