Kadena token crash: is KDA poised to take off again?

5 min read

KADENA uses a novel, parallel chain proof-of-work model (PoW) and a new smart contract language called Pact to provide enterprise-grade blockchain. After reaching an all-time high of $28.25 on 11 November, the KDA token lost almost two thirds of its gains, trading at $10.17 on 20 December.

What is kadena coin? Let’s look at the project and the latest predictions for the price next year and beyond.

Kadena (KDA) price prediction

Kadena offering: Innovation behind the project

Launched in June 2016 by two former JP Morgan executives, Stuart Popejoy and Will Martino, Kadena is known for its public blockchain Chainweb which can massively increase network throughput. The company claims that Chainweb is ostensibly the only sharded and scalable Layer-1 PoW network in production today.

Its permissioned blockchain is designed as a fully open-sourced project. It aims to solve the challenges facing existing blockchains today such as speed, scalability and security limitations. The company goes as far as to state that the Kadena ecosystem provides a security level equivalent to that of bitcoin.

Kadena’s offering includes marginal transaction fees for consumers as well as the introduction of the world’s first autonomous cryptocurrency gas station on the company’s sharded and scalable PoW blockchain.

Pact, which comes equipped with formal verification, aims to make the process of designing safer smart contracts more seamless by automatically detecting bugs.

Then there’s the network’s unique architecture, which has enabled it to become the only platform, the company claims, to be able to deliver increased energy efficiency as transactions per second (TPS) scale.

According to the company, Kadena is the only platform offering a complete decentralised infrastructure. Unlike other platforms, Kadena has been designed to power global financial systems through a protocol that continually scales to higher TPS as more chains are added to the network, thus facilitating industrial scalability.

What is Kadena coin?

KDA is the digital currency used on the platform. Its main purpose is to pay for computation on the Kadena public chain. The Chainweb public protocol functions through a braided consensus mechanism consisting of multiple individually mined peer chains that work in parallel to execute network transactions.

This architecture is capable of achieving network throughput in excess of ten thousand TPS. Each chain in the network mines the same cryptocurrency that can be transferred cross-chain via a trustless two-step Simple Payment Verification (SPV) at the smart contract level.

As a result of this design, the company reported that its hybrid platform recorded 480,000 TPS last year. In addition to massively increasing throughput, Chainweb also provides a significant increase in security.

Pact smart contracts can be updated, changed or fixed through an update mechanism in order to declare new versions of a smart contract that are applied only once the new code has been successfully executed. Any errors automatically roll-back the smart contracts to their previous state, allowing developers to fix potential errors. Meanwhile, the API functionality facilitates the extraction of data into external databases.

Pact smart contracts are comprised of three core elements:

  1. tables which support schemas and columnar history
  2. a set of public keys containing predicate functions
  3. a code module which contains function definitions, pact definitions, tables and schemas

Pact comes equipped with a powerful validation tool suite in the form of formal verification which uses Z3 Theorem Prover, an open source tool developed by Microsoft, in order to mathematically verify and test for bugs that may be present in code. The formal mathematical verification system analyses code with the use of proofs to test an intention that has been programmed into a smart contract, enabling developers to substantiate whether certain conditions can or cannot be met for a smart contract based on all given possible inputs that are available.

According to Kadena: “Pact empowers developers to implement robust, performant transactional logic, executing mission-critical business operations quickly and safely.”

Kadena token price analysis: Technical view and latest news

In the space of three months, the price of the Kadena coin rose by 2,725%, from $1 on 07 September 2021 to $28.25 on 11 November. This all-time high of $28.25 was preceded by a strong rally. It had been trading as low as $0.5712 on 11 June 2021.

The price rise followed an announcement on 29 October 2021 of NFT capabilities being introduced to Kadena’s 

Taking into account that KDA started this year at $0.1527 on 1 January, it has experienced meteoric growth.

On 24 November, Kadena announced the launch of its wrapped KDA (wKDA) on the EU-licensed cryptocurrency exchange, CoinMetro. Just before the announcement, KDA had been trading at $16.95 on 22 November 2021, but the price reached a high of $18.45 on 24 November following news of the listing. The price did however retreat to $12.25 shortly thereafter on 5 December 2021.

In more recent Kadena coin news, the first wrapped bitcoin kBTC was minted on testnet on 10 December 2021, which saw the KDA price rise to $12.33 that same day.

The Kadena crypto is currently (20 December) trading at around $10.32. It ranks 72 in the list of cryptocurrencies by market capitalisation at $1.6bn, according to CoinMarketCap.

Kadena (KDA) all-time performance chart

Kadena price drivers: Unparalleled network throughput and a thriving ecosystem

The recent launch of wKDA provided a boost to the project since the token operates on the Ethereum blockchain, allowing it to interact with all Ethereum virtual machine-compatible decentralised finance (DeFi) protocols.

Also, the project addressed a major barrier facing the broad use of decentralised applications (dApps) – the requirement for participants to pay cryptocurrency gas fees upon onboarding. The creation of the world’s first crypto gas station on Kadena’s blockchain allows gas stations to pay user onboarding costs, which can remove the friction of acquiring tokens in advance of signup.

What’s more, CoinMetro saw 730,000 KDA coins deposited within twenty minutes of KDA staking relaunching on the exchange on 3 November 2021.

Finally, Kadena reported last year that it had clocked in 480,000 TPS on its hybrid blockchain platform, beating competitors. For example, solana has a transaction capacity of 50,000.

The risks for Kadena lie in the fact it is still a relatively new project, launched only six years ago and operating within an emerging cryptocurrency industry that is subject to upward and downward trends.

Popejoy believes that Kadena’s explosive growth can be attributed to the company’s unique technology.

“Kadena has built the only Layer-1 proof-of-work blockchain that scales with Pact, the safest smart contract language, from the ground up. Kadena finally enables projects to innovate without having to worry about gas fees, scalability and security. Examples of groundbreaking innovation include the first gas-free DEX operable on multiple blockchain platforms, the ability to mint NFTs, wrapped assets like bitcoin and Ethereum, as well as other valuable protocols. I believe that Kadena will become mainstream in 2022 as we roll out our ecosystem with game-changing dApps, bridges to other protocols, integrations to leading cryptocurrency exchanges, wallets and even more,”  he told Capital.com.

Kadena (KDA) price prediction: Buy, sell or hold?

Technical analysis provided by CoinCodex showed that short-term sentiment on KDA was bearish as of 20 December, with 11 indicators displaying bullish signals compared to 17 bearish.

The 3- to 50-day simple and exponential moving averages were giving ‘sell’ signals, while the 100- and 200-day MAs were giving ‘buy’ signals. The Hull Moving Average, the stochastic RSI and the volume weighted moving average (VWMA) provided ‘sell’ signals. The relative strength index (RSI) and the moving average convergence divergence (MACD) remained neutral.

CoinCodex’s short-term Kadena crypto prediction indicated that it may not be the best time to buy the kadena token. The KDA/USD price could trade at $10.26 on 25 December 2021.

In terms of a longer term Kadena crypto prediction, algorithm-based forecasting service Wallet Investor shared a positive view. Based on historical data, Wallet Investor saw the price rising to $31.890 by December 2022, $73.726 in December 2024 and hitting $94.713 by December 2025.

DigitalCoin supported the bullish KDA crypto forecast, expecting the token to grow to $16.73 in December 2022, $20.51 in 2025 and hit $43.98 in 2028.

According to Price Prediction, the average price of KDI could reach $13.14 in 2022, $39.91 in 2025 and $273.91 in 2030.

Anndy Lian, chairman of BigONE Exchange and chief digital advisor for Mongolia’s national productivity agenda, told Capital.com:

“The company’s recent launch of its wrapped KDA (wKDA) on the Ethereum network is an added advantage to Kadena’s current offering. The benefits are that they offer zero fee transactions, they leverage on sharding and offer faster payments using Kuro which boasts 480,000 TPS. I am a strong advocate for enhanced crypto governance and Kadena’s unique ability to separate names from a set of public keys caught my eye early on. This specific feature allows enterprises to better govern crypto usage”.

When looking for Kadena price predictions, bear in mind that analysts and algorithm-based forecasters can be wrong. Their KDA projections are based on fundamental and technical studies of a cryptocurrency’s past performance. Past performance is no guarantee of future results.

It’s essential to do your 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.

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