3 reasons why Kadena (KDA) price went on a 500% parabolic frenzy

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.

KDA/USD 4-hour chart. Source: TradingView

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