Decentralised finance ( DeFi ) platform Kava has launched its upgraded mainnet Kava 9.With this it has implemented Cosmos’s IBC (Inter-Blockchain Communication) protocol which currently allows 29 different blockchains to talk to each other.
This is significant for Kava because it gives it access to many new potential users.
Unfortunately the launch coincided with another crypro crash and its coin, KAVA , is today (31 January) valued at $3.11 over 45% down from its value just before the upgrade.
Kava is still very much a work in progress.According to its whitepaper it aims to establish the world’s first dedicated DeFi network to present collateralised debt and stablecoins for the major crypto assets and to do this it needs to expand its ecosystem.
It says: “The Kava 9 upgrade is the first major milestone in Kava’s 2022 mission to connect the Cosmos and Ethereum ecosystems and deliver a frictionless Web3 experience for users across key verticals such as DeFi, GameFi, and NFTs.”
Also in the Kava 9 upgrade are core Ethereum modules to enable Ethereum Virtual Machine (EVM) support in the future, a staking incentives module to boost liquidity for new projects launching on Kava, and enhanced developer tools.
The number of DeFi platforms and use cases is constantly growing.According to The Block , the gross value locked in DeFi on the Ethereum blockchain has risen to about $112.5bn, as of 31 January 2022, up from $13.32bn at the start of 2021.
This article will examine Kava’s long-term usage and adoption prospects, as well as several Kava coin price predictions and analysts’ estimates.
What is Kava coin and how does it work?
Kava’s platform enables customers to mortgage and lend assets without the need for a traditional financial intermediary.
The network’s users can utilise USDX to collateralise their crypto assets.USDX acts as Kava’s stablecoin throughout the network.
To acquire USDX loans, users must store their cryptocurrency in a smart contract on the network.
The locked cryptocurrency serves as security for the loan.
The KAVA token is the network’s native cryptocurrency, with a total supply of 154 million coins.It powers the Kava network, and is used for governance and staking.
In terms of governance, KAVA holders can vote on proposals to amend the blockchain or framework parameters in the same way as voting rights are provided for a company’s equity stock.
On the other hand, staking allows users to assign voting rights to validators who protect the network.In exchange, they get transaction fees as well as user-charged stability fees.
What makes Kava unique?
Although most DeFi projects are built on Ethereum, Kava is built on Cosmos (ATOM), whose team claims it gives added functionality to the network.
Kava uses a Cosmos feature called zones to govern the crypto assets it accepts, which represents a network of many independent blockchains.
This protocol allows the project to increase the amount of crypto assets available to borrowers, such as Ripple ( XRP ), Binance ( BNB ), and Bitcoin ( BTC ).
The Kava DeFi platform serves as a decentralised bank for cryptocurrencies.It enables users to access different financial services, including USDX, its native USD-pegged stablecoin, and derivatives.
Using Kava, inventors can borrow USDX tokens by depositing collateral, which helps to leverage their exposure to cryptocurrency assets.
Kava price analysis: technical view
The KAVA token was priced at $0.95 when it was launched in October 2019.The price surged by more than 450% between June 2020 and August 2020, from $0.87 on 1 June to $5.09 on 16 August 2020, before falling to $1.29 by the end of 2020.
The rally resumed in January 2021, with the price rising from $1.30 on 1 January to the all-time high of $14.38 on 9 September 2021.
Between January and September, there were several periods of retracement, but the price recovered following the sell-offs.
Failing to hold its all-time high, Kava price gradually decreased and is now down by around 66% from that all-time high, trading at $3.11, giving it a market cap of $463m, as of 31 January 2022 putting it in 128th place on the crypto rankings.It has generated a 574% ROI for investors since its inception, according to CoinMarketCap .
Kava crypto news and price drivers
Kava mainnet upgrade and Loan Wars competition
Kava 9’s mainnet upgrade was completed on 19 January 2022.
It upgraded the Kava mainnet to Cosmos SDK version 44, enabling communication between Kava Ecosystem and all IBC-enabled (Inter-Blockchain Communication protocol) chains.
Additionally, the Kava Launchpad provides the groundwork for the Kava Ecosystem’s continuing expansion in 2022 by providing the architecture for a future Ethereum bridge, Kepler wallet compatibility and other developer enhancements.
Preparing for the IBC integration, Kava conducted the Loan Wars competition from 15 December to 29 December.
The tournament offered a total prize fund of $150,000.
AscendX launched Kava Swap liquidity event
AscendEX launched a liquidity mining event for Kava Swap on AscendEX from 1 November to 8 November, enabling users to lock up their KAVA tokens to receive a high rate of return over time.
During the event, users who deposited KAVA and USDX in the Liquidity Mining Program earned double rewards in the form of SWP tokens, including the standard SWP token award and additional SWP tokens of the same value.
Additionally, between 8 November and 25 November, there was a KAVA trading tournament with numerous incentives and prizes.
Hummingbot partners with Kava
In October 2021, Kava Labs partnered with Hummingbot , an open-source market-making and arbitrage bot toolkit, to incorporate Hummingbot into the Kava Ecosystem.
The Hummingbot ecosystem integration will link Kava Swap to the Hummingbot framework, enabling Hummingbot users to execute automated trades and market-making on Kava Swap while also reaping liquidity benefits.
Kava Labs launches Kava Swap
Kava Swap is a decentralised, cross-chain, Autonomous Market Making (AMM) protocol meant to enable an effective and robust means to swap natively across the world’s major assets.It was released by Kava Labs in October 2021.
Kava Swap provides retail and institutional users access to the Kava ecosystem’s on-chain liquidity, allowing them to exchange assets, expand earning opportunities and optimise rewards.
Kava Labs and Nervos to provide cross-chain liquidity
On 10 December DeFi platform operator Nervos announced it is integrating the Kava network with its cross-chain Force Bridge product to bridge liquidity between Kava and Nervos.It said the integration will “allow for the movement of native assets between the chains, giving $CKB holders new ways to use it on the Kava platform and bringing Kava to dApps on the Nervos network”.
The partnership will focus initially on integrating Kava with Force Bridge shortly after Kava’s EVM support is launched in 2022.
This will connect the Kava and Nervos chains, allowing for assets to be bridged between the chains.
Kava price prediction: analyst sentiment
Commenting on the Kava coin value and future prospects, Capital.com’s analyst Mikhail Karkhalev said:
“Projects like Kava will always be in demand, as cryptocurrency lending is a great way to hedge potential downside risks in the market, and to make existing assets work on a new front rather than just lying around in a wallet.In fact, users can freeze a notional bitcoin for a certain period of time and use stablecoins to buy other coins, trade and or grow capital in any other way, while the pledged asset is kept safe.
Kava forecast: Price targets for 2022, 2025, and 2030
Algorithm-based forecasting tools share bullish Kava coin price predictions, as of 31 January 2022.
According to [Wallet Investor] , KAVA will be worth $5.31 a year from now and go on to reach $14.3 in 2027.
– [DigitalCoin] believed KAVA would maintain its positive trend in the long-term.It expected the coin to average $4.26 in 2022, and $4.9 in 2023, $5.22 by the end of 2024, and $6.7 by the end of 2025.DigitalCoin predicted that the cryptocurrency could reach $13.2 by 2029.
In line with other algorithmic forecasters, [Price Prediction] was bullish in its Kava coin price prediction.It forecasted the price of the Kava token to average $4.7 in 2022, move up to $6.96 in 2023, $14.3 by the end of 2025, and $99 by the end of 2030.
When looking for Kava price predictions, bear in mind that analysts’ forecasts can be wrong.Analysts’ projections are based on making a fundamental and technical study of the cryptocurrency’s performance.
Past performance is no guarantee of future results.
It’s important to do your own research and always remember your decision to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money.You should never invest money that you cannot afford to lose.
FAQ
According to analyst sentiment and algorithm-based forecasts outlined above, KAVA has a potential value due to its fundamental value and current technical setup.However, cryptocurrencies are volatile in nature and past performance never guarantees future results.
Since September 2021, the Kava token has been on a bearish price trend.
KAVA coin price predictions from Wallet Investor, DigitalCoin and Price Prediction are bullish about its future value, as of 31 January 2022.
According to Price Prediction’s Kava price forecast, as of 31 January 2022, the price of KAVA token might hit $99 by the end of 2030.
Read more: MATIC price prediction: What’s next for Polygon?
.
