In this episode of BeInCrypto’s video news show, host Jessica Walker talks about Kadena.
Despite growing over 1000% over the past month, it still goes under the radar of most people in the crypto world. Kadena and her KDA token are absolutely crushing her right now, and we’ve decided to look into the reasons for that.
Data from TradingView shows that over the past two weeks, Kadena’s price rose 1,124% to a new high of $ 28.39 on November 11, as its 24-hour trading volume fell from ‘a daily average of $ 3 million to over $ 345 million.
We have identified three reasons for the price breakout of KDA. The first was the launch of Wrapped KDA on the Ethereum network. Deployment of NFT projects comes next, followed by new trade lists and the addition of KDA staking support. Let’s take a look at each of them.
Kadena and DeFi
KDA recently released an encapsulated version of its token called wKDA, which runs on the Ethereum network and allows it to interact with all DeFi protocols compatible with Ethereum Virtual Machine.
The process was completed in conjunction with the CoinMetro exchange and will help create a new level of token usage for KDA. Until now, he had not been able to cross the bridge to the interoperable world of DeFi. The team behind Kadena also plans to add cross-chain support for other blockchain networks, such as Terra, Polkadot, Celo, and Cosmos.
NFT on Kadena
Another reason for the increased dynamics seen in KDA is the addition of NFT capabilities to the network. This was done as a way to show the ability of smart contracts to keep fees low while dealing with high demand items. NFTs have been one of the hottest sectors in the cryptocurrency ecosystem and also appear to be one of the primary methods of attracting new users to a network, so it’s no surprise to see another project would use this tactic.
Although most protocols have now moved to proof of stake, Kadena, a scalable Layer 1 blockchain protocol, still operates on the old PoW model. According to the project, the network is capable of processing up to 480,000 transactions per second through the use of “braided chains”. One of Kadena’s main selling points is its ability to offer low cost transactions in a PoW framework while providing fast processing times.
The project also introduced a ‘crypto gas station’ feature that allows companies to eliminate all transaction fees for their customers by creating existing accounts to fund gas payments on behalf of their users under certain conditions.
New registrations and staking
KDA has also received support from cryptocurrency exchanges, including a new listing on Crypto.com, and CoinMetro now offers KDA staking. After officially reopening KDA’s staking capabilities on November 3, CoinMetro saw 730,000 KDA tokens deposited in 20 minutes to fully utilize the capacity of the staking pool.
This indicates that KDA holders are excited about the yield opportunities, and it could bode well for its integration into DeFi. The wrapped KDA could also help reduce the circulating supply of KDA which, ideally, would put additional buying pressure on the token price.
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