- Kava is a cross-chain decentralized finance (DeFi) platform that allows its users to borrow and lend assets.
- The KAVA coin is the native utility token of the Kava platform.
- Kava allows its users to lock cryptocurrencies into smart contracts on the blockchain.
Many cryptocurrencies rose to a new all-time high after the crash of the cryptocurrency market in May 2021. In contrast, some crypto assets faced a price drop and struggled to gain investors' attention.
The KAVA crypto has a different story as it entered a bearish zone when things were returning to normal in the crypto market. After clocking an all-time high of US$ 9.12 per token on August 30, the crypto token tanked but it seems to have entered a bullish zone once again.
According to CoinMarketCap, after a continuous decline for almost a month, the KAVA crypto recorded a 90 per cent surge in the 24-hour volume. At the time of writing this, KAVA crypto was trading at US$ 5.53 per token after a surge of 12 per cent in the last 24 hours.
What is Kava and why is it surging?
Kava is a cross-chain decentralized finance (DeFi) platform that allows its users to borrow and lend assets without the involvement of a third party. Unlike most DeFi projects, Kava runs on the Cosmos blockchain and not on Ethereum.
Kava allows its users to lock cryptocurrencies into smart contracts on the blockchain and this enables them to borrow loans denominated in USDX, a stablecoin pegged to the value of the US dollar. Meanwhile, this platform's native utility token is the KAVA coin.
The surge in the cryptocurrency's price could have been due to the announcement that Kava Labs has launched an Ignition Fund worth US$ 185 million. This fund will be used to support DeFi projects on the platform.
In the first phase of the Ignition Fund, Kava Labs aims to speed up the onboarding process of vetted projects to its platform. This move is expected to expand the services provided by the platform and attract more users in the future.
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KAVA crypto's price movements and prediction
In the last 30 days, KAVA's price declined by 36 per cent and 15 per cent since the past week. However, in the last 24 hours, the one-day volume and prices are rising, and it is expected that the US$ 185 million fund announcement will keep this cryptocurrency in the bullish zone.
If Kava Labs attracts more users and investors' attention, then the virtual currency could breach its all-time high by the end of 2021 and reach US$ 10 per token.
DeFi is becoming increasingly popular and there seems to be a massive opportunity for crypto enthusiasts to capitalize on this trend. Investors can bridge the gap between early adopters of DeFi and the untapped mainstream, and Kava can do this first with the help of the Ignition Fund.