The Decentralized Finance (DeFi) world has been all over the news in 2021 and touched an evaluated value of over USD 11 Billion LOCKED in the DeFi lending market only. Many have already noticed high-interest rates on DeFi platforms announced for various cryptocurrencies. This post is all about one promising cryptocurrency called Kadena coin (KDA). Let’s take a look at it in more detail.
Kadena (KDA) : What is Kadena Coin?
KDA is a cryptocurrency. The unique thing about this crypto is that is utilized to compensate for computing power on the Kadena public chain. This works just like how ETH works on Ethereum. The KDA on Kadena is how miners are paid for mining blocks on the chain. KDA is that transaction fee that users spend or pay to own their transactions involved in a block.
In other words, Kadena is a public blockchain. Its purpose is to work for scalability and highlights a unique smart contract style, called Pact. This Pact contains approved confirmation and upgradeable smart contracts. Kadena also utilizes a unique Proof-of-Work (PoW) consensus mechanism named Chainweb. This Chainweb is made up of various exclusively mined chains running in parallel to achieve network transactions. This outline maintains a high-transaction throughput at the base-layer without the requirement for any second-layer scalability solutions.
Kadena has also created a separate blockchain that uses its unrestricted smart contract platform. The private blockchain is described as Kadena Kuro (previously ScalableBFT). It utilizes a Byzantine Fault Tolerant (BFT) consensus mechanism. After 2018, Kadena Kuro has been utilized by the healthcare world to assist in decreasing the energy needed to accumulate and manage insurance provider data. This blockchain can be utilized just like a side-chain with an unrestricted blockchain network (such as Kadena’s public platform) to advance the transaction speed and methods and build new marketplaces for data.
Kadena Coin (KDA) Price Increased by almost +650%: What’s The Reason?
In the last month, the Kadena coin price has increased by almost +650%. What could be the reason behind this price rally? There are multiple reasons behind this price rally. The first one is the new staking opportunities in the DeFi sector or the migration to the Ethereum network. As mentioned earlier, the Kadena (KDA) is a scalable protocol that is still running on the traditional proof-of-work design. According to its whitepaper, the network can process up to 480,000 transactions per second.
The second reason behind this price rally is the launch of wKDA. The Kadena has just launched a wrapped variant of its token named wKDA. This wKDA runs on the Ethereum network and enables it to communicate with all EVM-friendly decentralized finance contracts.
Wrapped Kadena, $wKDA, has been submitted to @ethplorer!
Soon you'll find Wrapped $KDA on an Ethereum-based #DEX near you!
Along with bridging to #ETH, @kadena_io is committed to expanding to other layer-1 protocols such as @terra_money, @Polkadot, @CeloOrg, @cosmos, & more! https://t.co/xCExLkLcX5
— Kadena (@kadena_io) November 6, 2021
As mentioned in the above tweet, the KDA team is also planning to combine cross-chain assistance for other blockchain protocols like Terra, Polkadot, Celo, and Cosmos. This could be one of the main reasons behind the massive KDA price rally.
Apart from this, KDA has also added the NFT to display the smart contract capability to accomplish high-demand objects while maintaining low fees.
.@TheUFOtoken will be building their #NFT gaming platform on @Kadena_io!
UFO will utilize Kadena’s unique features from our scalable layer 1 #PoW #blockchain & Pact, our safest smart contract, to create the next generation #blockchain gaming experience!https://t.co/itO3QF3Xet pic.twitter.com/Rx1IgZQdX4
— Kadena (@kadena_io) October 29, 2021
The KDA project has also been listed by various cryptocurrency exchanges such as Crypto.com and CoinMetro offering KDA staking.
What’s So Special about Kadena Coin (KDA)?
According to its whitepaper, the total supply of KDA is planned at 1 billion tokens to be mined in the next 120 years. Kadena has outlined a token business practice that reflects the incentives of all members. As Kadena is a public blockchain platform, the major allotment of coins is issued via mining. The following image is displaying the KDA token allocation.
Kadena Coin Token Alllocation: Image Source: Kadena
At the time of writing this, the KDA price is sitting at $17.15. The following points are highlighting the key features of Kadena:
KDA/USD Monthly chart – TradingView
Right now, the investment in Kadena could be profitable in the next few weeks and months. The only thing to identify here is that the investment in KDA should be a long-term investment. The bull market is in full action and could develop as it did at the end of 2017 when we noticed big changes. KDA’s monthly ROI (Return On Investment) is almost +650% while its 3 months ROI is almost +2800%. The reason the long-term investment is crucial is that the yearly ROI is almost +7600% and this is huge.