There is a lot of stuff on DeFi these days. But, how about DeFi’s app store?
Sounds Interesting? Keep reading until the end to find out about an amazing project called Kava.io.
Kava delivers everything needed for seamless decentralized finance together in one place. Besides, many businesses have already partnered with Kava’s DeFi platform to enable their customers to lend, invest, and earn cryptocurrency.
App developers may quickly deploy DeFi apps at Kava.io’s platform using the platform’s framework and cross-chain technology. Harvest.io is the first Kava app that was launched in 2020. Users can experiment with various money-making ways by using assets such as USDX, Bitcoin, and others.
Kava developers want to integrate a range of proprietary technologies to streamline the decentralized lending sector. Indeed, the system was created to provide stablecoins and decentralized financing against all main crypto assets more openly and straightforwardly. As a result, Kava is a DeFi pioneer who continues to attract international media attention.
This article will discuss what Kava is, examine its historical performance, and understand Kava.io (KAVA) price prediction for 2021 and beyond.
What Is Kava.io (KAVA)?
Kava is a decentralized financial platform that allows users to get credit by securing collateral exchange for USDX. Ecosystem partitions are used in the Cosmos protocol to support and interoperability for cryptocurrencies hosted on different blockchains.
KAVA is the Kava protocol’s native governance token and shared asset. Token holders are in charge of voting on smart contracts and safeguarding the network, regulating the protocol, and acting as a lender of last resort.
Ethereum Blockchain is primarily used for DeFi projects; however, Kava is built on Cosmos, which provides additional features to this project. Users of Cosmos can borrow loans in USDX by securing cryptocurrencies in the site’s smart contracts.
Kava uses Cosmos’ zones function to control the crypto assets it takes, which are then executed in programs on separate networks. This allows the initiative to expand the types of crypto assets that borrowers can utilize, such as BTC.
The overall amount received by KAVA users is determined by the type of collateral utilized and the number of USDX a user mints.
Furthermore, there are 70,172,142 KAVA in circulation. To properly forecast future market capitalization, and thus the future price of the Cryptocurrency under consideration, a thorough understanding of predicted supply changes is required.
Kava’s CVIX is currently flashing 64, indicating that traders may expect high price fluctuation that must be managed appropriately. When trading with CVIX in any market, whether its equities or digital assets like Crypto, the most basic strategy is to create buy triggers when volatility spikes.
Keep reading to understand what Kava’s fundamentals and technical analysis display!
How Kava.io (KAVA) Works?
Developers can use Kava to create completely decentralized financial services that are supported by unique distributed governance technologies. Unlike other DeFi initiatives, the contributors to the platforms include KAVA’s team, other stakeholders, etc.
Moreover, Kava encourages a robust governance framework that gives all stakeholders the power to decide on the platform’s management and progress. It’s worth mentioning that this architecture outperforms previous options in which developers and miners couldn’t agree on core system changes, resulting in a constant standoff.
Additionally, users can borrow USDX and lock assets in specific smart contracts with Kava, which creates a collateralized debt position (CDP) on the back end. CDP is a contract that ensures the value of USDX remains tied to the US dollar.
You need to deposit Cryptocurrencies to connect to their wallets, and then the crypto asset is locked in a smart contract to create a CDP. Furthermore, USDX loans are issued based on CDP’s value and USDX is burnt if crypto is returned to the user.
On Kava, USDX is frequently over-collateralized. Borrowers must typically deposit a sum that is bigger than the USDX value generated by the protocol.
What Are the Key Modules in the KAVA Ecosystem?
There are four modules in KAVA’s ecosystem as follows:-
Price-feed module: Price-feed module is a basic oracle module. Oracles are sensors that are located off-chain and can supply data to Blockchains. A collection of white-listed oracles publishes prices for the system’s various assets.
Auction module: Users can choose from three different auction protocols while using the Auction Module. The system can use this process to turn the surplus into more stablecoins.
CDP module: The CDP module is quite important. Users can create, edit, and close CDPs for any sort of collateral. This is also the coding that is used to set the system’s global parameters. These options include things like debt restrictions and the total number of stablecoins in circulation.
Liquidator module: This is the protocol in charge of taking collateral from CDPs whose collateralization ratio falls below the collateral type’s stated threshold. The module’s ultimate choice is based on the prices obtained from the Price-feed module.
Price Analysis of the KAVA
Flashback: Historical Price Analysis of KAVA
The KAVA coin was launched in October 2019 for $0.95, and in April 2021, it reached an all-time high of $8.20 showing a roughly 760 percent increase in less than two years. The price of the KAVA coin is currently hovering around $6.00.
Let’s see if this trend will continue or not.
Kava.io (KAVA) Price Prediction 2021
The price of KAVA for August 2021 is predicted to be $7.41 and then rise to $15.54 by October 2021. Therese will be a massive rise in December 2021 and KAVA’s price will reach $19.09 by December 2021.
Kava.io (KAVA) Price Prediction 2022
The year 2022 will be the year of KAVA as the coin is expected to surpass $25 at the beginning of January 2022. During June 2022, KAVA is expected to reach $54.16 and then rise to $91.01 by December 2022.
Kava.io (KAVA) Price Prediction 2023
During March 2023, KAVA will decline to $81.24 from $91.01 and then rise to $97.66 by September 2023. Moreover, by the end of 2024, it may surpass $100.
Kava.io (KAVA) Price Prediction 2024
At the beginning of 2024, KAVA will reach $110, meeting the 2023 expectations about its price behavior. By the end of 2024, this coin’s price will reach $190, amidst the DeFi craze among the hodlers.
Kava.io (KAVA) Price Prediction 2025
In 2025, KAVA is expected to surpass the $200 level and the coin is expected to reach $280 by the end of 2025.
Kava.io (KAVA) Price Prediction: Market Sentiment
Several media outlets have given the KAVA currency a positive long-term outlook. Let’s see what the rest of the experts has to say:-
The KAVA coin price projection by Wallet Investor seems optimistic as it has predicted a positive trend in its price behavior i.e., making it a good investment in the long run. The investment value is expected to rise during the following five years.
By the end of 2021, Wallet Investor anticipates KAVA to be worth $11.01 by the end of 2021. Then by the end of 2022, it will reach $15.57 and rising to $20.21 by the end of 2023. Furthermore, by the end of 2024, KAVA is expected to reach $25.04 and by the end of 2025, it will rise to $29.60.
Digital Coin Price
According to Digital Coin Price, the development of the KAVA platform will be slow; however, the KAVA coin is expected to follow bullish signals of the crypto market and is expected to reach $7.68 by the end of 2021.
By the end of 2022, the price of KAVA will reach $8.07 and then rise to $10.93 by the end of 2023. Moreover, by the end of 2024, the price of KAVA will reach $11.52 and then increase to $13.31 by the end of 2025, according to Digital Coin Price.
Tokeneo is pessimistic about KAVA’s price and expects it to reach $3.57, which is the maximum price for 2021.
Gov Capital is quite positive about Kava.io and expects that it will reach $7.79 by December 2021. By the end of October 2024, the price of KAVA will be $15.77.
Reddit community expects KAVA’s price to reach $7 by the end of 2021, amidst its acceptance by the crypto community.
Our Kava.io (KAVA) Price Prediction
KAVA is one of the few cryptocurrencies that has managed to hold its ground in the face of the bear market. Our KAVA price prediction for 2021 is also positive but in the long run. This year, it has a good chance of surpassing its current all-time high of $8.01. However, this occurs only when KAVA overcomes a significant amount of previous psychological opposition.
Furthermore, the KAVA ecosystem may have a bright future ahead of it in 2021, thanks to ongoing innovations and modifications. It may soon hit $9.34, and it may even reach high levels, such as $10 if investors believe KAVA is a smart investment in 2021.
It is a volatile asset that can yield a reasonable return on investment over time. Cryptocurrencies, in general, are extremely volatile products that demand a well-thought-out risk management approach and a well-diversified investment portfolio.
Holders of KAVA can participate in voting, and governance to the Kava protocol. These adjustments could include smart contract updates, global debt limit adjustments, and the inclusion or removal of collateral assets, among other things. Voting can be done manually or by delegating it to validators.
So, is it a good idea to hodl KAVA?
Despite its optimistic scenario, we suggest you do your own analysis to make your final decision.
Kava aims to become the DeFi lending protocol through its decentralized lending features, allowing users to access a wider range of crypto assets. Hodlers of the token can participate in the governance, vote on the platform, and supports the protocol by acting as a last resort to make decisions.
These services are provided by traditional financial institutions only after thorough credit checks, arduous registration procedures, and compliance with anti-money laundering (AML) and KYC requirements. Due to Kava’s decentralized design, users merely need to provide their wallet address and any supported cryptocurrency to take advantage of similar services.
To benefit from USDX minting rewards, users can lock in any of Kava’s supported collateral assets. The rewards program has been allotted 3.848 million KAVA tokens, with KAVA awarded weekly in proportion to the quantity of USDX minted.
KAVA seems an amazing asset to invest in. Right?
Based on Kava.io (KAVA) price prediction, its future seems bright and the coin is expected to reach $20 by 2021. However, please check predictions carefully before deciding to invest in any of the coins.
Trading Cryptocurrencies is not suitable for all investors as they carry a high risk of loss. Therefore, users are advised to use trading strategies at their own risk. This article focuses on the fundamental and technical analysis of REN and can be used to make future predictions based solely on past performance.