Cryptocurrency Market Update
Cryptocurrency prices experienced a decline on Wednesday, with Bitcoin and Ethereum leading the losses. Bitcoin fell below $27,000, while Ethereum dropped below $1,820.
Bitcoin has been trading within a narrow range this month, struggling to exceed $30,000 but remaining above $25,000. Glassnode data indicates an increase in long-term Bitcoin holdings, with 68% of BTC held for at least a year, suggesting investor optimism.
Ethereum has also gained momentum, with ETH staked for staking increasing by over 8% since the Shapella upgrade went live last month, reaching nearly 21 million. Despite these positive developments, both Bitcoin and Ethereum are on track for their worst month of 2023, with declines of 7.6% and 3.1%, respectively.
Hong Kong’s Crypto Ambitions
Hong Kong’s Securities and Futures Commission (SFC) announced plans to allow retail investors to trade certain crypto assets on registered trading platforms starting next month.
The move is part of Hong Kong’s broader efforts to become a global crypto hub. However, the SFC will require platform operators to ensure the suitability of retail clients through onboarding processes, including risk tolerance assessments and investor understanding evaluations.
Not all cryptocurrencies will be available for trading, and stablecoins will be prohibited for retail traders. The new guidelines aim to establish a framework for crypto trading while minimizing potential risks.
Altcoin Market Summary
Altcoins generally struggled to perform well, with the total crypto market capitalization falling by 1.7%. The majority of altcoins are facing resistance at their 20-week moving averages, leading to capital shifting towards Bitcoin and Ethereum.
Among the top 100 cryptocurrencies by market cap, the biggest loser was SUI, with an 8.7% decline in the past 24 hours. Other notable losers include GMX (8%), Conflux (7.2%), BSV (6.5%), Radix (6%), Litecoin (5.6%), Dash (5.5%), LDO (5.5%), Stacks (5.3%), and Pepe (5.2%).
However, a few coins managed to gain slight increases, with Ton (4%) and IOTA (3%) being the only noticeable performers.
The Rise of Kava (KAVA)
KAVA Performance
KAVA, the 75th largest cryptocurrency by market cap, has experienced a 54% increase in the past month and a 121.38% increase year-to-date.
Despite these gains, KAVA is still down over 53% from its all-time high of $9.12 reached in August 2021.
Kava Protocol Overview
Kava is a layer 1 blockchain that provides compatibility with the Ethereum and Cosmos ecosystems. It utilizes the Tendermint-based proof-of-stake consensus mechanism and offers cross-chain functionality through the IBC protocol.
The Kava network allows users to lend and borrow assets without intermediaries and uses multiple crypto assets as collateral. It also enables the issuance of the USDX stablecoin, which can be borrowed against non-DeFi assets.
Kava Team and Funding
Kava was founded by Brian Henning Kerr and Scott Stuart in 2017. Kava Labs, the company behind Kava, has raised funding from venture capitalists, including Framework Ventures.
Kava Token Supply and Issuance
The KAVA token has an unknown supply cap. However, 533.4 million KAVA tokens are currently in circulation.
Kava Labs controls 25% of the total KAVA supply, while the Treasury holds approximately 28.5%.
Kava’s issuance rate is unknown, but there is a burn mechanism in place to remove tokens from circulation when used to pay stability fees in closing a collateralized debt position.
Kava Network Growth
The Kava network has experienced growth in total value locked (TVL), which currently stands at approximately $240 million. Prominent protocols built on Kava include Kava Lend, Kava Earn, Kava Mint, Mare Finance, and Kava Swap.
Recent Developments and Market Outlook
The recent surge in KAVA price has been attributed to the removal of investment warnings by the Digital Asset Exchange Association (DAXA) in South Korea.
The Kava 13 mainnet launch, which introduced enhancements such as seamless Cosmos-Ethereum bridging, has also contributed to the price increase.
However, it is important to note that market conditions remain uncertain, and KAVA may experience a correction due to overbought conditions and declining trading volume.
Additional Information
Disclaimer: This article is for informational purposes only and should not be considered financial advice.
Investing in Kava
To invest in Kava, you can purchase KAVA tokens on centralized or decentralized exchanges, such as Binance or Uniswap.
Buying Kava
Follow these steps to buy Kava:
- Create an account on a cryptocurrency exchange that offers KAVA.
- Deposit funds into your account.
- Place a buy order for KAVA.
- Store your KAVA tokens securely.