Kava, a decentralized finance (DeFi) platform, has introduced Kava 9 improved. It has done so by implementing Cosmos’ IBC (Inter-Blockchain Communication) protocol, which allows 29 different blockchains to communicate with each other at the moment.
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This is significant for Kava since it opens the door to many new prospective customers.
Unfortunately, the introduction coincided with yet another crypto crash, and its coin, KAVA, is now valued at $3.11, over 45 percent lower than it was before the upgrade.
Kava is currently in the early stages of development. Its whitepaper aspires to build the world’s first dedicated DeFi network that would deliver collateralized debt and stable coins for the major crypto assets. Still, it will need to extend its ecosystem to do so.
“The Kava 9 upgrade is the first important landmark in Kava’s 2022 ambition to integrate the Cosmos and Ethereum ecosystems and create a frictionless Web3 experience for customers across key verticals like DeFi, GameFi, and NFTs,” according to the statement.
Core Ethereum modules, which will enable Ethereum Virtual Machine (EVM) compatibility in the future, a staking incentives module to encourage liquidity for new Kava projects, and improved development tools are also included in the Kava 9 release.
The number of DeFi platforms and applications is steadily increasing. According to The Block, the total value of DeFi on the Ethereum blockchain has increased to almost $112.5 billion as of January 31, 2022, up from $13.32 billion at the beginning of 2021.
This article will look at Kava’s long-term usage and acceptance possibilities, as well as price predictions and analyst estimate for the Kava currency.
What Is Kava and How Does It Work?
The Kava Chain blockchain is permissionless, decentralized, and censorship-resistant. It was created using the Cosmos software development kit (SDK), a blockchain application framework. It is aimed to facilitate interoperability across chains, like another Cosmos in the blockchain sector.
Users can join the Kava platform using any of their wallets and deposit cryptocurrency. In CDP, this cryptocurrency will be used as collateral (Collateralized Debt Position). CDP is a method that ensures that stable coin loans are adequately collateralized. Customers are granted stable coin based on their CDP value.
The user must pay back the stable coin plus a charge to unlock their collateral. The mechanism will burn the stable coin and return the crypto to the user after the loan is paid up. Kava also contains a liquidator module that will confiscate collateral if the borrower fails to keep it above the threshold and send it to the auction module for sale.
Kava’s Current Market Situation
As of September 22, 2021, KAVA had $2.1 billion in assets and $1.8 billion in transactions, with 280 thousand users. It has set aside $185 million for the first development phase and still has two more phases to complete. Ripple, Cosmos, Starkweather, IOSG Ventures, Cosmos Station, Digital Asset Fund, Node team, Figment Network, and many others are part of the KAVA ecosystem. Financial institutions trust Kava.io as the most reliable DeFi platform.
According to the article, they announced their alliance with Humming Bot Foundation, a leading opensource trading bot and arbitrage bot toolkit project in crypto, on October 26, 2021. Humming Bot assists in developing centralized or decentralized trading bots for any platform.
It assists the user in generating profits through price arbitrage and trading tactics that are automated. The KAVA ecosystem will work with the humming lab, and they were originally going to concentrate on the KAVA swap. KAVA has also announced the debut of KAVA9’s new Mainnet. It will upgrade to Cosmos SDK version 44, which allows for implementing an inter-blockchain communication protocol.
Top Crypto news and price drivers for Kava
Upgrade to the Kava mainnet and the Loan Wars competition
The mainnet upgrade for Kava 9 was finished on January 19, 2022.The Kava mainnet was upgraded to Cosmos SDK version 44, allowing communication between the Kava Ecosystem and all IBC-enabled (Inter-Blockchain Communication Protocol) chains.
In addition, by providing the architecture for a future Ethereum bridge, Kepler wallet compatibility, and other developer advancements, the Kava Launchpad lays the framework for the Kava Ecosystem’s further evolution in 2022.
From the 15th to the 29th of December, Kava hosted the Loan Wars competition in preparation for the IBC integration. A total prize pool of $150,000 was available for the tournament.
AscendX launched the Kava Swap liquidity event.
From November 1 to November 8, AscendEX hosted a liquidity mining event for Kava Swap, allowing users to lock up their KAVA tokens and earn a high rate of return over time.
During the event, users who deposited KAVA and USDX in the Liquidity Mining Program received double SWP token incentives, including the usual SWP token payout plus additional SWP tokens of the same value.
A KAVA trading contest with several incentives and prizes was also held between November 8 and 25.
Hummingbot has teamed up with Kava.
Kava Labs and Hummingbot, an open-source market-making and arbitrage bot toolkit, teamed in October 2021 to integrate Hummingbot into the Kava Ecosystem.
The Hummingbot ecosystem integration will connect Kava Swap to the Hummingbot framework, allowing Hummingbot users to automate trades and market-making on Kava Swap while simultaneously benefiting from liquidity.
Kava Swap is a new product from Kava Labs.
Kava Swap is a dispersed, cross-chain Independent Market Making (AMM) system that allows users to swap natively across the world’s most important assets. Kava Labs introduced it in October of 2021.
Kava Swap gives retail and institutional users access to on-chain liquidity in the Kava ecosystem, allowing them to trade assets, increase earning opportunities, and optimize rewards.
Price Predictions for Kava: 2022-2026
KAVA is an important addition to digital currencies and blockchain technology. Due to its continual developments, it has a significant long-term earning potential in the cryptocurrency market.
According to historical statistics, the currency provided a good return to many dealers within the stated period. It produced huge gains last year, and the latest Kava price estimates for the future are as favorable.
Price Forecast for Kava in 2022
According to the KAVA price forecast, the Kava.io price might reach a high of $10 in the middle of 2022, with a price correction in the following year. The average price level at which Kava.io is traded in 2022, according to Kava.io price forecast 2022, is $9.13.
Price Forecast for Kava in 2023
The price of Kava is expected to be $10-$12 in 2023. According to our Kava.io price estimate, the highest price will be $12.81. However, according to the long-term Kava.io price forecast, the coin may encounter resistance at a price mentioned above level, and the currency may trade sideways. The year’s average price level is predicted to be $11.28.
Price Prediction for Kava.io in 2024
In 2024, the cryptocurrency industry is forecasting a bullish trend, with crypto aficionados predicting that digital coins would gain widespread public acceptance and popularity. Kava price forecasts are optimistic, with the price starting at $12 and rising to an all-time high of $14.86 by the end of the year, nearly three times the current price. According to the forecast, the average price will be $13.67.
Price Predictions for Kava in 2025
According to the Kava forecast for 2025, the maximum price of Kava will be $17.41 in 2025. According to prior Kava price estimates, the coin’s worth increases every year. As a result, long-term algorithms predict that it will trade in the $14-$17 range, with an average price of $16.12. According to our price estimate, there is good earning potential, indicating that investing in the currency for 2025 is a good choice.
Price Forecast for Kava in 2026
In 2026, Kava.io is expected to trade in the $17-$21 range, according to price predictions. The coin will reach a maximum price of $21.987 by the end of the year if the positive trend continues. According to predictions, the coin’s minimum and average prices will be approximately $18.92 and $19.060, respectively.
FAQ
Is it wise to invest in KAVA cryptocurrency?
According to analyst sentiment and algorithm-based forecasts, KAVA has potential value because of its intrinsic value and current technical setup. On the other hand, cryptocurrencies are highly volatile, and previous performance does not promise future outcomes.
Will the price of KAVA rise or fall?
The Kava token has been on a downward price trend since September 2021. As of January 31, 2022, the price predictions for KAVA coin from Wallet Investor, Digital Coin, and Price Prediction are optimistic.
What will the highest KAVA price in the future be?
According to Price Prediction’s Kava price estimate, the price of the KAVA token could reach $99 by the end of 2030 as of January 31, 2022.
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