Kava Chain is a decentralized, open-source, permissionless, censorship-resistant public blockchain built using the Cosmos SDK. In addition to the interoperability feature like other blockchains within the Cosmos ecosystem, the Kava Chain also includes Kava EVM for Ethereum compatibility, letting developers deploy their Ethereum-based dApps on its infrastructure conveniently.
The Kava blockchain offers a high throughput and low transaction fees and is a promising blockchain to develop and power the Web3 revolution. The Kava Protocol - a set of rules programmed into the blockchain, also supports advanced DeFi functionality on Kava, making it an attractive platform for decentralized finance.
Kava supports smart contracts by using modules known as CDP hardcoded into its protocol. CDP, short for Collateralised Debt Position, is a new automated loan contract that lets users use crypto assets as collateral to mint stablecoins on the blockchain.
$KAVA is one of two native crypto assets of the Kava Chain, the other being $HARD. KAVA serves as the governance token of the network and can also be staked on the Proof of Stake (PoS) blockchain to contribute to its consensus mechanism and security.
Kava is a secure and scalable Layer-1 blockchain developed with Cosmos SDK and has EVM (Ethereum Virtual Machine) compatibility. This feature lets Kava connect with other blockchains within the Cosmos network using the IBC (Inter Blockchain Communication) protocol.
Its EVM compatibility lets developers code and build dApps for the blockchain using Solidity - the leading program for Ethereum-based decentralized applications (dApps). However, using Cosmos SDK and Tendermint consensus gives Ethereum developers a platform with higher throughput and efficiency to deploy scalable and cost-effective projects.
Kava features a native stablecoin, USDX, loosely pegged to the US dollar and minted by opening a Kava CDP. Kava Chain also lets users issue other tokens, including non-native tokens in a wrapped or tokenized form representing other assets within its ecosystem.
DeFi users can mint USDX using their existing crypto assets for staking as collateral. The overcollateralized stablecoin lets lenders borrow two-thirds of the collateral amount and use it for various purposes.
Kava Labs is the firm responsible for developing the Kava blockchain and was co-founded by Brian Kerr, Ruaridh O’Donnell, and Scott Stuart. The blockchain’s mainnet was launched by the company in November 2019.
The Kava Lending Platform went live in June 2020, while “Gateway” with support for HARD Protocol was launched in October 2020. Kava’s mainnet upgrade in January 2022 enabled the IBC protocol, bringing interoperability features to the blockchain.
After its development began in December 2021, the Ethereum Co-Chain with Kava EVM went live in May 2022. Kava’s DeFi offering, Kava Earn, was introduced in June 2022, letting users put their crypto assets to work and earn interest on them.
The next significant update in the Kava roadmap was the launch of Curve Finance on the network in September 2022. This critical development encouraged more DeFi activity on the network by bringing one of the largest DeFi protocols to its ecosystem.
Kava is an attractive crypto asset with significant profit potential, especially amid the rising adoption of Web3 technologies. The blockchain offers a more scalable and affordable platform for deploying and operating Ethereum dApps, making it a good investment to consider if you wish to diversify your crypto portfolio into this sector.
In addition to increased on-chain activity through the deployment of dApps on its ecosystem, the Kava price could also edge upwards as DeFi on its network takes off. If more users participate in DeFi activities on the Kava blockchain, the value of its native token could increase in the future.
The price of Kava could also strengthen amid an improvement in the market sentiment. A bullish or risk-on sentiment could encourage buying activity in the crypto market to support the KAVA price.
While it is impossible to offer an accurate Kava price prediction over any duration, several fundamentals can provide insights into the price action in the KAVA token. These include:
As more developers design and launch their dApps on the Kava blockchain, the on-chain activity on the network could head higher. An increase in dApps on the network could bring in more users, increasing the demand for KAVA crypto and its price.
As the developers behind the blockchain roll out new upgrades that could make Kava more efficient to use, it could become even more attractive to use among developers and consumers. This could also offer a boost to the KAVA price statistics.
A favorable outlook towards cryptocurrencies in general and DeFi and Web3, in particular, could also benefit the price of KAVA. Positive sentiment in the crypto market boosts investor confidence and raises the KAVA price. However, a bearish or risk-off mood among investors could weaken the price of KAVA token.
$KAVA is one of two native cryptocurrencies used within the KAVA blockchain ecosystem and has the following use cases:
KAVA is used to transfer payments and store value within the Kava ecosystem. It is also used to pay as incentives to developers of top projects who help increase the network’s use.
As a KAVA holder, you can participate in the decentralized governance mechanism of the blockchain. You can vote on various proposals, including deciding the types of dApps and crypto assets supported by the ecosystem, debt limits, and other DeFi aspects.
You can stake KAVA on the blockchain, delegate your tokens to existing validators, and participate in securing the Kava network. Doing so can help you contribute to validating transactions and producing new blocks within the network and earn you rewards in the process.
Trade Kava crypto against other digital assets to profit from changing market conditions and volatility. You can buy or sell KAVA against other cryptocurrencies or hold it long-term if you believe in the potential of the Kava Chain project. Review the live price of Kava coin, KAVA market cap, circulating supply, 24-hour trading volume, and the latest crypto news before trading KAVA in the market.
You can grow your KAVA holdings safely and conveniently using KuCoin Crypto Lending. Visit this section to lend liquidity in KAVA and earn attractive daily interest over seven days, 14 days, or 28 days.
Staking KAVA offers a lucrative way to grow your crypto portfolio even as you help build the overall security of the Kava network. Here’s how to stake KAVA on the Kava Platform:
1. Open the Kava app and connect your wallet to its interface. Ensure you have sufficient $KAVA tokens in your wallet for staking by buying KAVA on KuCoin or other supported platforms and withdrawing your tokens to your wallet.
2. Click on Liquid Staking under the Products tab of the Kava app. Enter the number of KAVA coins you wish to supply after reviewing the app’s latest APYs.
3. Click on Stake to confirm the transaction and process it from your wallet. Now you can sit back and earn rewards without locking up your tokens through the Kava Platform’s liquid staking feature.
Kava is an attractive blockchain to build and deploy Web3 applications. Other blockchain networks with smart contract functionality and EVM compatibility could be considered Kava’s competitors.
Examples include Ethereum, Polkadot, Polygon, Solana, Avalanche, BNB Chain, and Fantom. Other blockchain networks built using Cosmos SDK and supporting the IBC protocol could also be considered potential Kava competitors.