Overview of Kava Ecosystem

KAVA is a dedicated platform in the DeFi sector that offers its customers collateral loans and stablecoins for all the major cryptocurrency assets like BTC, BNB, XRP, and ATOM. The company was formed with an aim to provide financial service access to every person in the world with reliability, security, and accessibility. It can be described as the decentralized bank of crypto assets. By accessing Decentralised Financial (DeFi) services, it eliminates the hurdle of the intermediary.

Kava Overview

Cryptocurrency Kava
Ticker Symbol KAVA
Price $2.41
Price Change 24h +7.94%
Price Change 7d -9.20%
Market cap $496,314,198
Circulating Supply 199,840,865 KAVA
Trading Volume $37,620,321
All time high $9.19
All time low $0.3
Kava ROI +439.84%

KAVA customers are able to borrow USDX tokens by depositing collateral. The KAVA platform accepts BTC, BNB, ATOM as collateral. The system enables the user to create an instruction to issue the loan. These loans are issued in USD pegged stablecoin called USDX.

KAVA Labs is Kava’s parent company co-founded by Brian Kerr, Scott Stuart, and Ruaridh O’Donnell. Brian Kerr is the CEO of the platform. KAVA labs have made a blueprint with high throughput to create a curated ecosystem.

The native token of the ecosystem is called the KAVA or Kava.io. The users can vote to change the governance, staking, and validation. KAVA.io platform rewards Kava tokens while minting USDX tokens on the KAVA app. Users get Kava coin rewards when they run their own staking node, provided that they should be within the top 100 staking nodes.

Kava protocol is the set of rules and behavior which enable all the advanced options and Decentralised functionalities of KAVA. The hard protocol is an application on the Kava chain; a Hard token is given as a reward for Kava users. Kava Chain has three coins, namely KAVA, HARD, and USDX.

How Does Kava Works?

Kava Chain is a permissionless, decentralized, and censorship resistance blockchain. It has been built with a Cosmos software development kit (SDK), a framework for building blockchain applications. Like other Cosmos in the blockchain industry, it is designed to provide interoperability between chains.

Users can connect through any of their wallets and deposit cryptocurrency to the Kava platform. This cryptocurrency will be locked as collateral in CDP (Collateralized Debt Position). CDP is a system that ensures sufficient collateralization of stablecoin loans. Based on CDP value, customers are given stablecoin.

The user can pay back the stablecoin and a fee to unlock their collateral. Once the debt repayment completes, the system will burn the stablecoin and return the crypto to the user. Kava also has a liquidator module; when the borrower fails to maintain their collateral above the threshold, it will seize the collateral and send it to the auction module for sale.

Current Market Status of Kava

KAVA has $2.1 Billion assets and $1.8 Billion transactions so far, with a user base of 280K as of September 22, 2021. It has allocated $185 million funds for the first phase of development and has two more phases left for its development. KAVA ecosystem is partnered with Ripple, Cosmos, Stakewithus, IOSG Ventures, Cosmos Station, Digital Asset Fund, Node team, Figment Network, and many others. Kava.io is the most trusted DeFi platform by financial institutions.

From the news, on October 26, 2021, they announced their partnership with Hummingbot Foundation, a leading opensource trading bot and arbitrage bot toolkit project in crypto. Hummingbot helps to build centralized or decentralized trading bots on any platform.

It helps the user generate returns via automated price arbitrage and trading strategies. KAVA ecosystem will integrate with the humming lab, and they were initially planned to focus on the KAVA swap. KAVA has even announced the launch of KAVA9’s new Mainnet. It will upgrade to version 44 of Cosmos SDK, which can implement an inter-blockchain communication protocol.

Products of KAVA Platform

There are three products of the KAVA Platform.

  • MINT: Generate USDX token within seconds by connecting your wallet and borrowing for low rates, for which the user can get rewards for minting.
  • LEND: Lend or borrow cryptocurrency assets on the chain and get rewarded for it.
  • SWAP: Swap high-demand assets with fewer transaction fees; by supplying liquidity, users can earn high rewards on the same.

KAVA and KAVA hard are the governance tokens of the Kava Ecosystem and, with the governance token, users can vote to change the protocols. Automated transaction systems called smart contracts are coded in the protocol. In 2020 Kava announced the launch of Kava Lend with the title that it is the first cross-chain money market. It ensures security, can be used for lending, borrowing, and earning coins. Same-year April, they announced the launch of KAVA testnet-5000, which helps simplify the development, debug, and deployment process.

With the help of testnet, users can transfer BNB from the Binance chain to Kava directly. The new javascript SDK was launched, enabling developers and engineers to do the best projects. Recently KAVA partnered with Akash networks to bring decentralized hosting to the ecosystem. Kava and hard web apps are merged into a single application by which users can connect both protocols without reconnecting. On 2021 August 27, they announced the launch of the rebranded product portfolio.

They have created a suite of protocols whose names align with actions. With this, KAVA CDP is changed to KAVA Mint, HARD is changed to KAVA Lend, and SWAP is changed into KAVA Swap. These three protocols are built on an interoperable cross-chain feed on the same platform. It has different decentralized financial products and services, enabling the ecosystem to work entirely as a bank without an intermediary for the cryptocurrency market.

Kava Token- Market Sentiments

The current price of KAVA cryptocurrency is $4.87, down by 12%. KAVA trades with a 24-hour trading volume of $139,777,808. The current market cap of the token is $690,926,596, with a circulating supply of 147,635,274 KAVA and a total supply of 154,004,110 KAVA.

Based on historical data, on September 09, 2021, Kava reached its all-time high (the highest price) of $9.19, and the all-time low is noted at $0.287137, which was on March 13, 2020. Today it is trading in the range of $5.7743 to $4.8577. The positive trend has been lost since the last few days.

Technical Analysis of Kava

The short-term technical analysis of Kava.io price on the daily chart shows that the KAVA price pattern is changed into positive momentum, and the trend continues. After the round bottom formation, which suppressed the Kava.io price from the end of 2020 to the beginning of 2021, it changed into an uptrend, later it formed higher highs, and apart from small price corrections, it doesn’t have a major price drop in levels.

KAVA Price Prediction

The above weekly chart reflects the buy Kava signal as it holds the possibility of further recovery from the current price level. The considerable market plunge of September 2021 made a significant price drop in Kava.io price; the price of Kava has fallen from $9 to $3. However, the coin recovers slightly and managed to stay above the $4 mark. A bearish signal appeared on the daily chart, and it took support at $4.

Kava price forecast

At the current price level, investors may enter into the trade to take profit which initiated a short-term buy signal; the coin is trading above $4.5 with the resistance level of $5.6. The coin is resting on its levels before a move.