In this episode of BeInCrypto’s Video News Show, host Jessica Walker talks about Kadena.
Despite shooting up over 1,000% in the last month, it is still flying under the radar of most people in the crypto world. Kadena and their KDA token are absolutely crushing it right now, and we’ve decided to look into the reasons behind this.
Data from TradingView shows that in the last two weeks, Kadena’s price has rallied 1,124% to a new record high at $28.39 on Nov. 11 as its 24-hour trading volume spiked from a daily average of $3 million to more than $345 million.
We identified three reasons for the breakout in KDA’s price. First was the launch of Wrapped KDA on the Ethereum network. The rollout of NFT projects comes next, followed by new exchange listings and the addition of support for KDA staking. Let’s look into all of them.
Kadena and DeFi
KDA recently launched a wrapped version of its token called wKDA, which operates on the Ethereum network and allows it to interact with all Ethereum Virtual Machine-compatible DeFi protocols.
The process was completed in conjunction with the CoinMetro exchange and will help to create a new level of token utilization for KDA. Up until this point it had been unable to cross the bridge into 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.
NFTs on Kadena
Another reason for the increased momentum seen in KDA was the addition of NFT capabilities to the network. This was done as a way to showcase the ability of smart contracts to keep fees low while transacting 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 for attracting new users to a network, so it’s not surprising to see yet another project resort to this tactic.
Although most protocols have now shifted to proof-of-stake, Kadena, a scalable layer-one blockchain protocol, is still operating on the old PoW model. According to the project, the network is capable of processing up to 480,000 transactions per second thanks to the use of “braided chains.” One of the main selling points for Kadena is its ability to offer low-cost transactions in a PoW setting while still offering fast processing times.
The project has also introduced a “crypto gas station” feature that allows businesses to eliminate all transaction fees for their customers by creating accounts that exist to fund gas payments on behalf of their users under certain conditions.
New listings 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 staking capabilities on Nov. 3, CoinMetro saw 730,000 KDA tokens deposited within 20 minutes to fully tap out the staking pool’s capacity.
This indicates KDA holders are excited about yield opportunities, and it could bode well for its integration into DeFi. Wrapped KDA might also contribute to reducing the circulating supply of KDA, which ideally would put additional buying pressure on the tokens’ price.
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