As a platform, Kava is very promising: it’s a flexible and fast-growing project in one of the most exciting parts of the crypto world — DeFi. Does Kava token enjoy the same success? Judge for yourself with the Kava crypto price predictions we have gathered below.
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Kava Fundamental Analysis
Kava is a cross-chain DeFi platform for lending USDX stablecoins. Platform users can borrow stablecoins while depositing their collateral and purchasing a variety of other digital assets to start profiting from it. It was launched in 2019. As the official website says, Kava aspires to make democratized financial services available for everyone.
Kava DeFi hub is functioning as a decentralized bank of digital assets providing users with access not only to stablecoins, but also other financial services such as synthetics and derivatives. To use the assets across different chains they need to be wrapped as BEP-20 tokens. Also, users can mint their USDX stablecoins and then contribute it to the platform's money market (HARD Protocol) and thus earn APY while the collateral is secured by the network.
The project is built on the Cosmos blockchain and uses a collateralized debt position system (CDP) to ensure that stablecoin loans are sufficiently collateralized. If the borrower couldn’t keep their collateral higher than a defined threshold limit, the Kava liquidator module will take collateral from the failed CDPs and redirect them to the auction.
The platform is fueled by utility Kava tokens which also grant the governance of the platform and could be used as a reserve currency if the system is undercollateralized. Kava is an inflationary token with a total supply of 111.5 million tokens that grows every year from 3% to 20% depending on the staking proportion. The current circulating supply is 91 million coins.
Kava Live Price Chart
Kava token started the year with a bearish trend that lasted the first two weeks of 2021 and after that following the major crypto bull run started to climb up reaching the first milestone of $5 on February 12. The price went through the correction on February 23 and then started to rise again.
By March 14 the token reached its new all-time high, but then overperformed itself on April 4 with the value reaching $7.42. From this position, the token slowly started to go into a downtrend where it stayed until the end of July. As a result, Kava reached an all-time high of $9.12 on August 30 and has been declining with slight price rises ever after.
Overall Kava is considered to be one of the most emerging coins this year mainly due to the constant project development. This year Kava token has seen higher bullish moves than before. At the moment of publishing the token price is $5.85 which has been stable for the last week.