Kava has recently sparked a lot of enthusiasm in the decentralised finance (DeFI) industry. The project aims to establish the world’s first dedicated DeFi network that will present collateralised debt and stablecoins for all major crypto assets. Investors wonder whether it has the potential to upend the entire cryptocurrency ecosystem.
The price of the Kava token was nearly $1.30 at the start of 2021, and it has since climbed nearly 380% to $6.20 as of 9 May 2021. Kava token is currently ranked 145, with a market cap of $378m according to CoinMarketCap as of 13 May.
Will the price of Kava continue to rise? In this Kava analysis, we will look at the cryptocurrency’s long-term use and adoption prospects, and explore various Kava coin price predictions and analysts’ forecasts.
But first, let’s understand what Kava is.
What is Kava?
Kava’s platform empowers its users to mortgage and lend assets without the need for a conventional financial intermediary.
In this sense, Kava is one of many emerging DeFi ventures. However, although most DeFi projects run on Ethereum, Kava is based on Cosmos, whose team claims it adds extra capacities and functionality.
To manage the crypto assets it accepts, Kava employs a Cosmos feature called zones, which represents a network of many independent blockchains. This protocol allows the project to increase the amount of crypto assets available to borrowers, such as Ripple (XRP), Binance (BNB), and Bitcoin (BTC).
The Kava DeFi platform serves as a decentralised bank for cryptocurrencies. It enables users to access different financial services, including its native US-dollar-pegged stablecoin USDX and derivatives. Using Kava, inventors can borrow USDX tokens by depositing a collateral, which helps to leverage their exposure to cryptocurrency assets.
What is KAVA Token?
The KAVA token is the native token of the Kava network, with a total supply of 122 million coins. The KAVA token is used primarily for governance and staking.
In terms of governance, KAVA holders may vote on propositions to change the blockchain or framework parameters, similar to how voting rights are granted for a company’s equity stock. On the other hand, staking empowers users to allot their voting rights to validators, which will protect the network. In return, they receive transaction fees as well as stability fees charged by users.
How does Kava work?
Users of the network may use USDX to collateralise their crypto assets. In the network, USDX serves as Kava’s stablecoin. Users need to lock up their crypto in a smart contract on the network to obtain USDX loans. This locked cryptocurrency acts as collateral against the loan.
Users can generate synthetic leverage for any funded crypto asset in the system by taking out multiple collateralised loans. Users, for example, may use the protocol to secure their BTC or XRP holdings. They will be given an equal amount of freshly minted USDX to spend on more bitcoin. As a result, the user enjoys a market-leveraged position.
Kava crypto news & highlights
In April 2021, Kava Labs released a Mainnet update, Kava 5, that allows users and institutions to receive huge bitcoin staking rewards. The crypto borrowing feature and the ability to earn interest and take out loans against multiple crypto assets are added to Kava’s Version 5 update. According to reports, the latest update would enable institutions to gain up to 45% on their bitcoin holdings while avoiding counterparty danger.
Kava also announced the acquisition of professional service provider Crank Studio in March 2021 to accelerate the adoption of security-first DeFi while enhancing the user experience.
KAVA price prediction & analyst forecast
The price of the KAVA token was $0.95 at the time of its launch in October 2019, and it hit an all-time high of $8.20 in April 2021, representing a nearly 760% rise in less than two years. Currently, the price of the KAVA token fluctuates around $6.00, and in this section we will discuss the latest KAVA forecast by different analysts.
According to DigitalCoin and Wallet Investor analyst forecasts, the stage appears to be set for all major DeFi coins, including KAVA tokens, with both rating the cryptocurrency as a strong buy.
Trade KAVA to US Dollar - KAVA/USD CFD
Kava crypto price prediction 2021, 2025, 2030
According to Wallet Investor’s KAVA coin price forecast, there will be a positive trend in the future, and KAVA could be an “awesome” long-term investment. Wallet Investor expects KAVA to reach $11.01 by the end of 2021, $15.57 by the end of 2022, $20.21 by the end of 2023, $25.04 by the end of 2024, and $29.60 by the end of 2025. Over the next five years, the investment value is forecasted to rise by approximately 343.9%.
According to DigitalCoin’s KAVA forecast, KAVA is expected to retain its bullish trajectory in the long run, but development will be sluggish and steady. According to DigitalCoin’s analysts, the price of this token will be $7.68 by the end of 2021, $8.07 by the end of 2022, $10.93 by the end of 2023, $11.52 by the end of 2024, and $13.31 by the end of 2025. Eventually, DigitalCoin believes the cryptocurrency will hit $21.66 in 2028.
If you are not yet ready to invest in the KAVA coin, you can still take advantage of its price fluctuations by using contracts for difference (CFDs). Due to its increased volatility, the KAVA token has the propensity for strong returns. Keep in mind, though, that trading in volatile assets is unpredictable. Capital.com helps you to speculate on cryptocurrency markets without buying the cryptocurrency itself. Follow the KAVA/USD pair in real time and enter long or short positions depending on your KAVA price forecast.
KAVA is a volatile asset that can provide a decent return on investment in the long term, according to Wallet Investor and DigitalCoin. However, cryptocurrencies in general are highly volatile instruments and require careful risk management strategy and a diversified investment portfolio.
Although nearly all recent KAVA forecasts are bullish, the price figures vary greatly. DigitalCoin forecast that the KAVA price would rise by at least 150% over the next five years, however, Wallet Investor is far more bullish suggesting a growth of approximately 343%.
Contracts for difference (CFDs) empower Capital.com traders to speculate on the price of KAVA without purchasing the asset. If you want to invest in KAVA cryptocurrency tokens, it has a high volume on Binance and can be traded against Bitcoin, Binance Coin, and USDT.
The KAVA token is expected to be worth $13.24 in 2023, $18.32 in 2025, and $18.42 in 2027, according to DigitalCoin's KAVA forecast. All of these predictions, though, are dependent on various metrics that can differ significantly due to unforeseeable conditions.