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In a sudden turn of events, the layer 1 blockchain project Kava has experienced a significant drop in its value, leaving traders and investors wondering about the cause behind this downward trend.
Over the past 24 hours, the layer 1 blockchain native token, KAVA has plunged nearly 4% along with the rest of the global crypto market. As Kava gears up for an imminent mainnet upgrade, the crypto community is eagerly awaiting the improvements and advancements that lie ahead.
Reasons Behind Kava’s Price Drop In The Last 24 Hours
One of the primary factors contributing to Kava’s decline in the past 24 hours is the profit-taking behavior of traders and investors. Kava had witnessed a remarkable rally in its price over the past week up by 28%.
The rally is suggested to have prompted many market participants to cash in on their gain, causing the price of Kava to plummet. Such profit-taking activities are expected in volatile markets, and traders often seize the opportunity to realize their profits during price surges.
Meanwhile, it’s worth noting that Kava’s price decline is occurring within the broader context of a downward trend in the overall cryptocurrency market. Many digital assets including Bitcoin (BTC) have recently experienced price corrections and volatility, potentially influenced by various market factors and investor sentiment.
The interconnected nature of the crypto market means that price movements in one asset can have ripple effects on others. Consequently, Kava’s value may have been influenced by the prevailing market conditions, leading to its recent drop.
Summary: The Kava 13 Mainnet Upgrade
The upcoming Kava 13 upgrade introduces several key improvements that aim to bolster the capabilities and user experience across the Kava ecosystem. This includes Kava EVM 2.0 focused on Scaling and Performance Boost.
Kava recognizes the need to scale rapidly to accommodate the growing traffic from both the Cosmos and Ethereum networks. The Kava EVM 2.0 upgrade addresses this demand by optimizing the full node software, ensuring faster and more reliable performance for RPC providers and validators.
Another key improvement the upgrade introduces is an improved Cosmos-Ethereum Bridging. The bridge is said to enable users to seamlessly send native Cosmos assets to a wide range of protocols deployed on Kava EVM.
By reducing the reliance on third-party middle-chain bridges, this enhanced bridging experience minimizes the number of steps, waiting times, and uncertainties associated with asset transfers.
Advanced Vault Control is included in the improvements Kava is looking to launch via the upgrade. The Vault which is controlled by Kava DAO receives a significant upgrade in the form of enhanced functionality.
The Kava 13 upgrade empowers the DAO to handle tasks such as distributing rewards, supplying liquidity, facilitating asset swaps, portfolio diversification, and more. According to Kava, the reason for the upgrade is due to the ecosystem recording massive growth across Cosmos and Ethereum in the first quarter of 2023.
This growth called for demand in a greater need for speed, security, and performance, features the Kava 13 upgrade also known as K13 is looking to offer.