Up 67% in the past 3 months, KAVA has remained an positive outlier amongst decentralized finance protocols. Climbing from $3.88 on Mar 13th to hitting $5.38 today April 25th, and doing the majority of that climb in the past 7 days up over 20%, consistently KAVA has stayed
towards the top of the charts whilst many other defi protocols have experienced stagnation in terms of spot price.
Layer-1 blockchains such as Polkadot, Solana, Avalanche, Cardano, and Terra compete to build "Ethereum killing virtual machines (EKVM's)" By adding clone chains that run parallel to the main chain, testnet chains, and relayer protocols to compartmentalize transactions these other chains are viably creating launchpads for 1000's of projects that will attract the attention of many developers in the short term. The numbers say that we may have some divergence between forecasted protocol development and actual operable DApps. If we could read between the words and the marketing (moving pictures), we might find the answers are close to the surface. Open-source code is transparent. Most Defi & DApps are currently in alpha and beta testing modes, and they are competing for project funding and network access. The capitalization is spread very thin amongst the competing, yet intertwined, ecosystems. The forecasted vs. actual divergence should be considered when contemplating long-term investments.
Read between the words and the marketing (moving pictures) and we can find the answers are close to the surface. Open-source code is transparent.
Learning to understand coding basics will be complicated, but it is doable with the many resources available to do so. Learning to perform fundamental analysis can help one relate to over 19,000 crypto coins and tokens. Understanding a little bit about computer code may be the very thing that can help an investor detect lame or dead projects, avoid Ponzi schemes, and mitigate the inherent risks involved in the scantily regulated cryptoverse.
Before we talk about how KAVA (click to go straight to more about Kava) has combined the two most used permissionless ecosystems into one scalable network, let's examine some of the top and only somewhat funded project "assets" from the EKVM's for a fun comparison.
Avalanche Developments:
(JOE) Trader Joe (Not the retail grocery stores) - One-stop shop on Avalanche for trading, lending, borrowing, farming, & staking. $224M in market capitalization.
Cardano Projects:
(Only 1 verified project on Coinmarketcap???)
(WMT) World Mobile Token - Bringing mobile network to the 4 billion unconnected. Emotional marketing of the dream of providing the web 3.0 & a global ID to each of 4 billion people that didn't take part in web 2.0?
Other heavily marketed, over touted, under funded, and unverified projects on Cardano include defi protocol Occam and defi oracle Charli3. Sorry Charli.
Solana Top Asset:
(SRM) Serum - A protocol and ecosystem that brings outstanding speed and low transaction costs to decentralized finance. It is built on Solana and is completely permissionless. Ecosystem partners can compose with Serum’s on-chain central limit orderbook to share liquidity and power markets-based features for institutional and retail users. Market cap of SRM is currently at $582M.
Polkadot TestChains:
(KSM) Kusama - The Polka testnet of testnets. Designed to provide a backdrop for developers looking to innovate and deploy their own blockchain, Kusama can be used as a preparatory network before launching on Polkadot. Many projects are even choosing to stick with Kusama for their final product. KSM currently has a market cap of $1.34B.
Terra Lunatics:
(ANC) Anchor Protocol $636M mkt cap
(UST) TerraUSD - Terra Luna ecosystem stablecoin with an $18B mkt cap
Anchor Protocol is a lending and borrowing protocol offering up to 19.5% APY on stablecoin deposits. Lenders can deposit their UST and earn attractive rates on their investments while simultaneously benefiting from low volatility. Borrowers can turn their LUNA collateral into productive assets without giving up control of it.
In Summary of the EKVM's: Terra has started to reign supreme over the others listed. Terra (LUNA) spot price has climbed over the $100 mark recently, currently trades at $94, and has
moved to the top half of the Bollinger Bands on the daily chart. When Terra makes these moves it has previously influenced Anchor Protocol (ANC) & Mirror Protocol (MIR) to coinstride with it. Coincide - Coinstride ...you get it, right?!
These assets move together in the market with LUNA historically leading the way. The TerraUSD stablecoin and it's capitalization make this blockchain ecosystem an interesting watchlist for any crypto enthusiast. Look for a trading analysis of this ecosystem released by FNL trader & analyst Travis Harbin.
Polkadot, Kusama, Acara Network, Kurara Network , Polkastarter - this ecosystem has a steep learning curve for consumers and retail traders, but for enterprise and blockchain development they are on the DOT.
The rest of the chains are not so impressive by the numbers. Solana - Aside from Serum, Solana is the NFT capital of the net. It will be interesting to see how that plays out since NFT's are being created everywhere. Cardano - hmmm? Mama told me that "if you ain't got nothin' nice to say, then don't say nothing at all." Sorry Charli. Avalanche - AVAX is my favorite due to a trading bias, but AVAX still has much to do in order to get the rubber on the roadmap. The competition in the metaverse has taken its toll on blockchains like AVAX that have promised so much for the web 3.0.
So, what makes KAVA so special?
Kava has been staying the course on it's roadmap with it's main net 1.0 launch scheduled for May 10th, 2022. Live liquid staking, gamefi & NFT incentive program, ETH bridge launch (pictured left), & a network incentive program all due to take place May 2022. Kava was able to launch the beta testing of the ETH bridge in April.
The full launch of the Kava Network, featuring the co-chain architecture of the Ethereum and Cosmos Co-Chains. This unlocks the ability for developers to build in both the EVM and Cosmos SDK execution environments with seamless interoperability between the two, connecting the two largest decentralized ecosystems on the planet. -from Kava Network Roadmap via kava.io
Coupled with Cosmos SDK framework, Ethereum co-chain development on Kava began in December of 2021. Kava’s unique co-chain architecture enables connections to all of the world’s most used blockchains, allowing for the free flow of users, assets, and projects into the Kava Ecosystem.
Kava has been a notable asset to stake under the care and custodianship of centralized San Francisco, California based Kraken Exchange. Kraken has an easy stake and unstake feature that can be found under the "FUND" tab of their website and offers 23% APY for KAVA stakers. By staking Kava on Kraken users enjoy no lock up nor limit and rewards are paid twice weekly. (Note that Kusama stakes at Kraken for 18% APY)
A permissionless way to use the Kava defi features would be through the actual Kava App. The decentralized Kava App boasts earnings of up to 200% APY and allows users to mint, lend, swap, and earn within one secure ecosystem. This is seemingly the easiest way to participate in earning KAVA. There is also an entire road to venture down regarding Kava Lend (formerly Hard Protocol), where Kava backed stablecoin $USDX is able to be used as collateral in $USDX loans that are 99% protected against liquidation. $USDX is the native stablecoin of the Kava Ecosystem. Kava users can acquire $USDX by supplying crypto assets to the Mint protocol as collateral. In other words, you can put up a number of crypto assets to mint $USDX. Then you can borrow $USDX against your own stake of $USDX at a low interest rate. There is no credit check for these decentralized loans, however, at first you will only be able to borrow up to 25% of your collateral $USDX. How would you use the borrowed asset? I bet you have some ideas where this is going. Please, feel free to add to the comments below to let us know your thoughts on crypto lending and spending.
TRADING KAVA
KAVA currently has a mkt cap of $956M. (4/25/2022 15:35) There has been over a 20% increase in trading volume from the average of $449K. Relatively that is about 5% of the market cap. It is set to break over the $1B cap and is over it's fully diluted market cap of $925M. So not fully...and not cap like cap, but capitalization! $$$
On the daily chart the relative strength index (RSI) is over the 70 mark for the first of what looks like may take a triple top or an h&s to turn the beat around. Retracement will be eminent but may take a Fibonacci resistance to slow down momentum. The R3 is at $6.11 while the R2 was reached at $5.44 and currently is giving slight resistance as orders get filled by sellers to supply the demand from the buyers. If you are currently staking Kava or anything else on Kraken, then remember, it has to be unstaked before you will be able to place your sell orders. Once it is sitting in limit order limbo waiting to be picked up by demand, you will not be earning staking rewards. Depth charts can help you see the limit orders that are being placed on the exchange you are using. To learn more about order flow and specifically depth charts, Check out the Coinbase understanding the depth chart video at https://fnlcryptodna/videos. Videos like these help traders understand the robust tools available to use at all exchanges and on the #1 crypto charting of TradingView (Click on the TradingView link to get started with the FNL Crypto DNA referral code and receive $30 when you upgrade to one of their paid plans. Terms and conditions apply.)
"You have to unstake it, before you can sell it. With Kava, buy it, stake it, earn more of it, then just unstake a little bit and sell it to help attract more market & network participants of KAVA!" -from a biased owner of a staked supply of KAVA
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