KAVA price prediction: Will Kava 10 upgrade boost the coin?

Kava Network, a decentralised finance (DeFi) platform for lending and borrowing crypto assets, is set to upgrade its network to Kava 10 in 2022, adding Ethereum Co-Chain to the currently used Cosmos blockchain.

Yet, despite the buzz generated in anticipation of the launch, its native token Kava (KAVA) suffered a volatile ride in 2022 amid a wider dip in cryptocurrency markets.

Can the coin regain momentum and what does the KAVA crypto price prediction for 2022, 2025 and 2030 look like?

What is the KAVA coin?

The Kava Network was founded in 2018 by Kava Labs, a company focused on making financial services easily accessible to all. On 14 November 2019 the Kava mainnet launched.

The Kava blockchain acts like a decentralised bank. It’s the first DeFi platform to offer users the possibility to borrow and lend major crypto assets without the need for a traditional financial intermediary, according to its whitepaper. It supports a number of cryptocurrencies, including Bitcoin (BTC)Ripple (XPR)Binance (BNB) and Cosmos (ATOM).

Many DeFi platforms are powered by the Ethereum network. Kava is the first to be built on Cosmos, which, according to its creators, allows Kava to operate “lightning-fast” – the platform’s major unique selling point.

The network is powered by Co-Chain architecture, which combines the flexibility and speed of the Ethereum blockchain with the interoperability of the Cosmos SDK, merging the two most used permissionless ecosystems into a single, scalable, network.

This allows users to access the most popular blockchains and establishes the free flow of assets and projects within the Kava Ecosystem.

The platform has three functions:

  • Kava Lend: allows users to earn rewards by supplying and borrowing assets from money markets.
  • Kava Swap: allows users purchase and sell assets across the Kava Blockchain and earn rewards by providing liquidity pools.
  • Kava Mint: allows users to take USD-pegged stablecoins called USDX loans by using their crypto assets as collateral.

Kava’s crypto-backed stablecoin can be minted by anyone who owns crypto assets. To mint USDX a user must deposit more crypto assets in USD value than they wish to create USDX of. Different crypto assets have a different collateralisation ration.

Users receive rewards for minting USDX in the form of Kava Network’s native cryptocurrency, the KAVA token, which can be used for governance and staking. The number of rewards an owner receives in KAVA varies Accor to the type of their owned crypto assets.

There were 100m KAVA tokens initially released by the network. According to CoinMarketCap, at of the time of writing (8 February 2022), over 152m KAVA tokens were in circulation, with their total supply exceeding 154m. The token’s market capitalisation amounted to over $562m, giving it a rank of 125.

KAVA crypto price: Latest drivers

The KAVA token was priced at $0.9646 at its launch on 26 October 2019. It surged by 32.44% to $1.2776 on 19 November 2019 following the announcement on 16 November that the KAVA mainnet had officially launched into full gear “making DeFi on Cosmos a reality”.

Through the end of 2019 and the start of 2020, the token’s price started to fluctuate. It dropped to its all-time low of $0.3438 on 16 March 2020, despite the token being listed on three different exchange platforms throughout January and February that year.

Since it’s all-time low in March, the token regained momentum in the summer of 2020. By 8 August, the token’s price reached $4.6653 – a 1256.98% surge since that all time low.

The KAVA token then kept a steady rate of growth, rising 9.12% to $5.091 on 16 August after an announcement that Kava had embarked on a partnership with Injective Protocol.

By 23 August 2021, the KAVA token reached its all time high of $8.7159, a rise of 161.1% since its low of $3.3381 on 20 July, amid anticipation of the launch of Kava Swap on 30 August.

Between 23 and 26 August the coin’s price started to decline. It gained momentum on 26 August when the platform rebranded by introducing the Kava Mint, Kava Lend and Kava Swap Protocols. This led to a 14.19% rise in the token’s price from$7.5813 on 26 August to $8.6573 on 28 August.

The next major catalyst in KAVA crypto news came at the end of October 2021 when the company announced that it was planning to launch its big Kava 9 update. The token, which has been falling since September, failed to gain much momentum rising by 5.18% between 21 and 26 October, from $5.6376 to $5.9299.

The Kava 9 mainnet update successfully launched on 19 January 2022, however, the token’s price stayed in a bearish trend falling by 38.8% from $5.5258 to $3.3785 between 16 and 23 January 2022 amid a general dip in the cryptocurrency markets.

Technical analysis provided by CoinCodex showed that short-term sentiment on the KAVA token was bearish as of the time of writing (8 February), with 21 indicators showing bearish signals and nine showing bullish signals.

What’s to come in 2022?

In recent KAVA crypto news, the company uncovered plans that the blockchain will undergo another major upgrade known as Kava 10 which will introduce the Ethereum Co-Chain along with the currently used Cosmos blockchain. According to the platform, bringing Ethereum and Cosmos together will create a surge of activity on the Kava Network. The launch of Kava 10 is anticipated for 3 May 2022.

Other upcoming projects on Kava’s roadmap that could influence n the token’s price include the GameFi and non-fungible tokens (NFT) incentive program scheduled for May 2022.

BigONE Exchange’s chair Anndy Lian explained that Kava’s function to lend and borrow assets using a number of cryptocurrencies as collateral still serves as a big plus for the platform.

“[Kava’s] debt-to-collateral ratio is reasonable too. For example, based on a 300% ratio, the cryptocurrency locked in the network would be liquidated if it falls below 3 X of the USDX loaned,” he told Capital.com.

“Their codes are sound and their treasury is still holding up well.”

by Anndy Lian, BigONE exchange chair

“The slide in the price recently is due to the overall market conditions. Some investors may see steeper plunges due to the performances of their collateralised assets. In my humble opinion, there is nothing to be worried about at this point, their codes are sound and their treasury is still holding up well.”

KAVA price prediction 2022-2030

Algorithm-based forecasting service Wallet Investor gave a bullish KAVA crypto price prediction, as of the time of writing (8 February), calling it an “awesome long-term investment”.

Based on its analysis of the cryptocurrency’s past performance, the forecasting service predicted that KAVA could trade at $5.917 in 2023 and $14.649 by 2027.

DigitalCoinPrice supported the bullish Kava forecast, seeing the coin reach $5.33 by the end of 2022. The coin’s price is estimated to surpass its all-time high in November 2025 at $8.78, according to the site.

Although a KAVA coin price prediction for 2030 is not currently available, DigitalCoinPrice estimated that the token could reach $8.50 by the end of 2027, rise to $11.73 in December 2028 and jump to $16.28 in the following year.

Note that algorithm-based price predictions can be wrong. Forecasts should not be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.

 

Original Source: https://capital.com/kava-price-prediction

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Ethereum 2.0: What to expect from the long-awaited upgrade?

Ethereum 2.0: What to expect from the long-awaited upgrade?

Additional comments on top of what is quoted in the article: 

Well, back in 2020 everybody is talking about Ethereum 2.0 but now people no longer really care about it, the reason for that is based on my own observations are:

1) It is been delayed numerous times.  Till now we don’t have a trustworthy date for that,

2) A big portion of the Ethereum community is against it, especially the miners,
3) It doesn’t do much actually. If it includes sharding, many would look forward to 2.0, but since it does not matter,
4) Neither the speed nor the cost will go down a lot. This makes no difference in most instances.

As to the price prediction, when the 2.0 launches, we would most likely see a price increase, maybe a new time high. However, its just speculation, not aligned with its real value. Hence it will drop back to where it should be. This will also depend on the bigger economic and financial environment, 2022 could be a difficult year.

My final word to everyone. Crypto is very volatile. Invest with caution.

– Anndy Lian

Ethereum 2.0: What to expect from the long-awaited upgrade?

Ethereum’s native cryptocurrency, ether (ETH), saw a fruitful 2021 as the world’s second-largest coin surged by 404.21% in the last 12 months from $730.37 on 1 January 2021 to $3,682.63 on 31 December 2021.

With over 119 million ETH in circulation and a market capitalisation of $384bn, at the time of writing (14 January 2022), countless ETH investors are waiting impatiently for the cryptocurrency to release its series of updates known as Ethereum 2.0 or ETH2, aimed at making the decentralised blockchain faster, safer and more sustainable.

The ETH2 process kickstarted on 1 December 2020, pushing the coin to a 5.2% daily gain from its $602.87 opening price, by launching the Beacon Chain, that introduced proof-of-stake (PoS) to the blockchain, a new means to keep Ethereum more secure and help investors earn more ETH tokens in the process.

Initially known as Phase 0 on technical roadmaps, the ETH2 process consists of three phases in total, with Beacon Chain being the first.

Miners are currently anticipating the launch of Phase 1, which is planned for June 2022.

A final date for the Ethereum 2.0 release is yet to be announced, but the final phase of the blockchain’s launch is anticipated in 2023. What should investors expect from ETH2 and what are analysts saying?

What is Ethereum 2.0?

Initially known as ‘Serenity’,  the Ethereum 2.0 set of interconnected upgrades has been an active area of research and development since 2014. ETH miners, however, were first introduced to the concept during CEO Vitalik Buterin’s speech at the Devcon conference in Prague on 31 October 2018.

“Ethereum 2.0 is this kind of combination of a bunch of different features that we have been talking about for several years, researching for several years, actively building for several years, that are finally going to come together into this one coherent whole,” Buterin said, describing what Ethereum 2.0 entails.

The vision of ETH2 is to “bring Ethereum into the mainstream and serve all of humanity” by making it more “scalable, secure, and sustainable” as the blockchain aims to target three large-scale problems; clogged networks, lack of disk space and using too much energy (which is not eco-friendly).

In general, what ETH2 will do is switch up Ethereum’s algorithm from its current proof-of-work (PoW) consensus protocol, also used by Bitcoin, towards proof-of-stake. What this means for the blockchain is that mining ETH will come with less energy consumption, less hardware requirements, stronger immunity to centralisation and stronger support for shard chains, a key upgrade in scaling the Ethereum network.

Following Ethereum 2.0 updates, the blockchain itself will become more accessible as its move towards a proof-of-stake consensus protocol also plans to drop its expensive use price triggered by its popular demand and ability to only process between 15 to 45 transactions per second.

According to crypto investor Lark Davis  on Twitter, who shared a photo from CoinMarketCap, ETH transactions fees are the highest in comparison to all other blockchains, reaching $46.22 as of 13 January 2022.

The ETH2 roadmap consists of three phases, with Phase 0, the launch of Beacon Chain, already live. Possibly one of the most vital changes to the Ethereum blockchain, the Beacon Chain, does not alter anything about the way Ethereum is mined today, but introduces the proof-of-stake algorithm.

The Beacon Chain, currently, exists separately from the Mainnet (short for main network) Ethereum chain used. However, following Phase 1, coined by the blockchain’s creators as ‘the merge’, the two will become one. Currently, more than 8 million ETH coins are eligible for the Beacon Chain.

It is estimated that ‘the merge’ will launch in June 2022, with the possibility it could be delayed further if not ready. ‘The merge’s’ launch will mark the end of proof-of-work algorithms within the Ethereum blockchain and the full and final transaction into proof-of-stake.

Phase 2, the final of the ETH2 launch, Shard chains, was originally planned to launch before ‘the merge’ was complete.However, this plan was later changed because Shard chains can only enter the Ethereum ecosystem with an operating proof-of-stake consensus mechanism.

Because ETH2 upgrades are “somewhat interrelated”, one cannot fully operate without the other being complete, so Ethereum 2.0 will entirely launch into action once Phase 2 is released.

What will ETH2 do to the Ethereum price?

Firstly, Ethereum’s update will allow the cryptocurrency to catch up with its competitors, which are already much more advanced in terms of scalability and security. NEO , for example, can already master over 10,000 transactions per second, something Ethereum is unable to achieve due to its current proof-of-work consensus protocol.

In addition, the current cost of ETH transactions via the Ethereum Network is very high, therefore preventing a number of people from using it. The introduction of Shard chain aims to increase the transaction speed of the ETH token, potentially scaling it up to 100,000 transactions per second, thus having the possibility to lower Ethereum fees amid faster transactions.

“Technical updates usually have worked well for Ethereum’s price in the past, and the same could be expected for the 2.0 update,” said Yuya Hasegawa, market analyst at Bitbank.

News concerning ETH2 updates had also positively affected the performance of the token’s price so far.

On 20 January 2021, Ethereum Foundation Researcher Danny Ryan published a report stating that the launch of the Beacon Chain was a “resounding success”. Between the launch of Beacon Chain on 1 December 2020 and the end of January 2021, the token’s price skyrocketed by 123% from $587.32 to $1,314.

Yet BigOne Exchange chairman in Asia Anndy Lian notes that the Ethereum 2.0 price outlook could not be as bullish as it seems.

“As to the price prediction, when the 2.0 launches, we would most likely see a price increase, maybe a new time high. However, it’s just speculation, not aligned with its real value. Hence it will drop back to where it should be. This will also depend on the bigger economic and financial environment; 2022 could be a difficult year,” Lian told capital.com.

Please note that price predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.

Risks ahead for Ethereum 2.0 release

Lian notes that back in 2020 people were much more invested in the Ethereum 2.0 release than they are now for a number of reasons.

Firstly, Lian said it has been delayed “numerous times” and until now “we don’t have a trustworthy date”. Secondly, he added, “a big portion of the Ethereum community is against it, especially the miners”.

Lian said that it is likely ETH’s cost will not decrease by much, following the final launch of Ethereum 2.0, making no difference in most instances.

On the other hand, Bitbank’s Hasegawa disagreed and stressed that the two-year delay of the Ethereum 2.0 release date is “proof that the developers have been working hard to make sure no significant network failure would happen”. She said “technical risks are expected to be unlikely” once Ethereum 2.0 launches.

“An overall outlook for Ethereum is positive, with the upcoming update to 2.0, and the growing anticipation for the NFT and metaverse industries’ expansion,” Hasegawa concluded.

In a 2020 Macro Report, Crypto.com senior research analyst Kendrick Lau said that sharding, which is planned to be introduced alongside Ethereum 2.0, is “one of the most promising methods to add scalability to a blockchain network and in tandem with layer 2 scaling solutions, which can increase scalability by a factor of hundreds, if not thousands”.

Please note that analyst predictions can be wrong. Analyst comments shouldn’t be used as a substitute for your own research. Always conduct your own research before investing. And never invest or trade money you cannot afford to lose.

 

Original Source: https://capital.com/what-is-ethereum-20

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Bitcoin’s Taproot Upgrade: A Cautious Step in the Right Direction

Bitcoin’s Taproot Upgrade: A Cautious Step in the Right Direction

Bitcoin developers have spent four years developing and deploying Taproot on its mainnet. So far, there have been no reports of failures, errors, etc., to hinder the upgrade, a clear sign of a stable upgrade.

The purpose of Taproot is to improve the usability and privacy of cryptocurrencies and at lower transaction costs. Earlier this year, 90% of Bitcoin miners approved the Taproot upgrade, delivering another significant programming improvement since the 2017 SegWit upgrade patch, which improved Bitcoin’s scalability. So, what problems can Taproot now solve after going live on 14 November 2021?

 

What is Taproot?

Greg Maxwell, a Bitcoin Core developer, first proposed the Taproot upgrade in January 2018. This was followed up by Pieter Wuille who submitted a code acquisition request in October 2020, and Taproot was incorporated into the Bitcoin Core codebase.

Taproot is a Bitcoin soft fork that improves the Bitcoin script. Its goal is to enhance other relevant indicators of complex transactions while increasing privacy.

By releasing time locks and requiring multiple signatures, transactions on the Bitcoin network can become more complex. Anyone can detect transactions that use complex functions, which necessitate the creation of various transactions, without Taproot. The upgrade may conceal some activities associated with such transactions. So now even when these functions are used in a transaction, they appear to be a single transaction. This is a significant change for Bitcoin users who value their privacy.

Taproot has the ability to make people completely invisible to the Bitcoin scripts that are running. For example, after implementing Taproot, different Bitcoin payment methods look the same, whether they are Lightning Network channel transactions, peer-to-peer transactions, or through complex smart contracts. Only peer-to-peer transactions are visible to the monitors of these transactions. However, it is worth noting that Taproot has not changed the fact that the wallet information of the sender and the ultimate recipient is exposed.

 

Bitcoin’s urgent problems

People’s attitudes toward Bitcoin have shifted in recent years. Many people appear to be more willing to use Bitcoin as a tool to combat inflation, and I believe it indeed has superior properties as a store of value.

On the other hand, millions of Bitcoin owners want to see it used more as an accounting unit and payment method; the other two primary functions are defined as currency. The adoption of Bitcoin as a national currency in El Salvador, the first nation to adopt the digital asset officially, is the clearest example of its potential as a currency to date.

Although Bitcoin is regarded as an elegant solution for person-to-person financial transactions, its coding has remained essentially unchanged since its inception in 2008 by a person or a group of people under the pseudonym of Satoshi Nakamoto. These purposefully simplified programming parameters of Bitcoin limit the number of transactions per second, network bandwidth, and settlement speed, enabling a typical block size regardless of data size, reducing efficiency, and increasing transaction costs.

With the introduction of other blockchains, such as Ethereum and Cardano, which can speed up actual transaction payments and provide more complex services, such as DeFi and NFT, the advantages of Bitcoin are becoming less clear.

 

The improvements Taproot provides for Bitcoin

Taproot is a collection of three separate Bitcoin improvement protocols, technically titled BIP 340, 341, and 342. In addition, they will collaborate to provide the following enhancements to the creator of this digital asset:

⦁ Bitcoin transactions will be bundled together during the verification process, reducing total transaction volume while automatically sharing costs among the bundled user transactions.

⦁ Binding features are used in one of the BIP upgrades to improve transaction privacy.

⦁ The most recent Taproot upgrade improved the features and functions of smart contracts in each Bitcoin block.

Schnorr signatures used by the Taproot upgrade will also reduce the amount of data needed for multi-signature transactions, which are more complicated to process than standard ones. And with lesser data involved, transactions will become more time-efficient, thereby making the transactions cost-efficient.

Although Taproot’s upgrade has accelerated Bitcoin’s progress, it still falls short of smart contracts functionality common to Ethereum, Cardano, and Solana, which have many built-in functions and mechanisms to deal with ‘just in case scenarios.

 

Breathing new life into Bitcoin

Some may question the value of the Taproot upgrade regarding these programming enhancements as little more than a coding ‘catch-up’ by the Bitcoin developer community.

However, a more balanced view is to regard this as “an overwhelmingly positive upgrade to the Bitcoin protocol, but it is not itself enough for investors to get excited.” This is echoed by Anndy Lian, intergovernmental blockchain expert, and Chairman, Asia at BigONE exchange: “Bitcoin Taproot is indeed promising to tech guys like me. But investors’ enthusiasm over the upgrade seems to be neutral as reflected by the price. I am sure over time, everyone can see its impact clearer.” The key to this thesis is that the idea that Bitcoin as a smart contract blockchain is over-exaggerated. What positives there are related to the fact that the upgrade has been accomplished without any technical mishap, and through a successful community consensus process that bodes well for the future. It also lays the foundations for valuable use cases in the future, for example in the growth of payments rails for the metaverse.

 

Original Source: https://hackernoon.com/bitcoins-taproot-upgrade-a-cautious-step-in-the-right-direction

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j