Amid the bearish crypto market, the KAVA token emerged as the top daily gainer with a 10.29% over the past 24 hours. The crypto market is currently dancing to tunes played by the bears as depressing sentiments push coin prices toward bottoms. But the bearish season is also a time for cryptocurrencies to prove resilience, probably by finding other support systems to help them defeat market pressure.
In Kava’s case, the newly launched validator incentives are responsible for its recent price actions. These ecosystem funds have successfully pushed the token price as more validators run their node on the Kava blockchain. This is evident in the coin’s recent price surge and rises in trading volume amid the market downtrend.
Factors Influencing Token’s Price Today
The token recently incentivized its validators to migrate their cloud infra from AWS and Google Cloud to Akash. Akash also pledged $1 million in AKT (Akash Network’s native token) to Kava Strategic Vault to advance decentralized infra on Kava.
This incentive must have motivated users on Kava while increasing the network activity. The reward which Kava gives its contributors is another factor that could be fuelling its price rally.
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According to a March 8 tweet, the token has recorded a 135.2% bullish sentiment among the Kava community. Social activities on the Kava network have increased, with the number of social contributors and social dominance climbing to 89.8% and 125.8%, respectively.
Kava is a decentralized blockchain that combines the speed and interoperability of Cosmos with Ethereum’s developer power. The Ethereum co-chain supports EVM Smart Contracts, while the Cosmos co-chain enables a lightning-fast Tendermint consensus engine.
Integrating the two most-used blockchain development environments makes Kava highly scalable and supports seamless interoperability. This feature could be one of the factors sustaining Kava’s price since its launch.
Price Outlook Of Kava Token And Other Cryptocurrencies Of Ecosystem
The token is trading at $0.8653, with a 194.44% increase from its all-time low of $0.3 recorded on March 13, 2020. However, it is still over 90% down from its September 2021 all-time high.
Despite the token’s connection to Ethereum and Cosmos, its price rally did not rub off on Ether and Cosmos’ ATOM. Ether is currently down by 1.5%, while Cosmos (ATOM) is down by 7% over the past 24 hours. Meanwhile, the Kava ecosystem houses three kinds of tokens, Kava token, USDX stablecoins, and HARD token.
USDX has recorded a 0.29% price gain over the past 24 hours, with a 0.12% rise in trading volume. USDX is the stablecoin issued by the Kava blockchain. The stablecoin is trading at $0.840534, with a more than 84% increase from its May 2022 all-time low.
On the other hand, the HARD token is the governance token of Kava Lend, a decentralized money market built on its blockchain. The HARD token is trading at $0.1805, 1.47% down over the past 24 hours. It has lost all past-price gains while succumbing to the bearish pressure on the market. At press time, HARD has observed a 13.5% decline in a week.
Featured image from Pixabay and chart from TradingView.com