Proof-of-work (PoW) blockchain networks were all the rage in the early days of cryptocurrency when Bitcoin set the standard for security and other projects followed suit in various attempts to offer a robust, scalable network that would either support payments of efficiently transmit data.
Most protocols have now shifted to proof-of-stake, but Kadena, a scalable layer-one blockchain protocol, is still operating on the old PoW model. According to the project, the network is capable of processing up to 480,000 transactions per second thanks to the use of “braided chains.”
Data from Cointelegraph Markets Pro and TradingView shows that in the last two weeks, Kadena’s (KDA) price has rallied 1,124% to a new record high at $25.94 on Nov. 7 as its 24-hour trading volume spiked from a daily average of $3 million to more than $345 million.
Three reasons for the breakout in KDA’s price include the launch of Wrapped KDA (wKDA) on the Ethereum network, the rollout of nonfungible token (NFT) projects, new exchange listings and the addition of support for KDA staking.
Kadena joins the DeFi brigade
KDA recently launched a wrapped version of its token called wKDA, which operates on the Ethereum network and allows it to interact with all Ethereum Virtual Machine-compatible decentralized finance (DeFi) protocols.
The process was completed in conjunction with the CoinMetro exchange and will help to create a new level of token utilization for KDA, which, to this point, had been unable to cross the bridge into the interoperable world of DeFi.
As noted in the tweet above, the team behind Kadena also plans to add cross-chain support for other blockchain networks, such as Terra, Polkadot, Celo and Cosmos.
NFT projects launch on Kadena
Another reason for the increased momentum seen in KDA was the addition of NFT capabilities to the network as a way to showcase the ability of smart contracts to transact high-demand items while keeping fees low.
NFTs have been one of the hottest sectors in the cryptocurrency ecosystem and also appear to be one of the primary methods for attracting new users to a network, so it’s not surprising to see yet another project resort to this tactic.
One of the main selling points for Kadena is its ability to offer low-cost transactions in a PoW setting while still offering fast processing times.
The project has also introduced a “crypto gas station” feature that allows businesses to eliminate all transaction fees for their customers by creating accounts that exist to fund gas payments on behalf of their users under certain conditions.
New exchange listings and staking opportunities
KDA has also received support from cryptocurrency exchanges, including a new listing on Crypto.com, and CoinMetro now offers KDA staking.
After officially reopening KDA staking capabilities on Nov. 3, CoinMetro saw 730,000 KDA tokens deposited within 20 minutes to fully tap out the staking pool’s capacity.
This indicates KDA holders are excited about yield opportunities, and it could bode well for its integration into DeFi. Wrapped KDA might also contribute to reducing the circulating supply of KDA, which ideally would be additional buy pressure on the tokens’ price.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.