Kaspa has seen a meteoric rise this past week, with its price increasing by around 67% over the last seven days. This comes even after the coin dropped 6% over the last 24 hours.
Kaspa (KAS) is a new blockchain network that aims to be the fastest and most scalable cryptocurrency. It utilizes a novel blockDAG (directed acyclic graph) structure and proof-of-work consensus to allow for near-instant transaction confirmations at high throughput.
According to its website, Kaspa was created to embody the core principles outlined by Bitcoin’s (BTC) creator, Satoshi Nakamoto, like proof-of-work mining, deflationary monetary policy, and no central governance. However, it claims to improve Bitcoin’s speed and scalability limitations.
According to a Nov. 20 analysis by CryptoJon, the recent price surge for KAS can likely be attributed to growing interest and awareness around the project. Kaspa launched its mainnet earlier this year and has steadily gained traction and adoption in the crypto community.
As CryptoJon mentions, many investors are excited about Kaspa’s potential long-term outlook. If the project succeeds in becoming a widely used cryptocurrency with fast and cheap transactions, its market cap could grow substantially in the years ahead.
While short-term volatility is expected, CryptoJon claims that Kaspa proponents are focused on where the coin could be by 2025 or 2030. As more users and developers build on Kaspa, the fundamental value of the network should increase over time.
This assumes the core technology works as intended and can reach sufficient scale. There are substantial risks around competition from other fast, scalable cryptos.