Kaspa Rejects the Broader Market Trend as KAS Price Hits New ATH on +10% Daily Surge

Key takeaways:

• Kaspa rises 10% on August 3rd to form new all-time high despite bearish DeFi sentiment
• Curve Finance suffered an exploit on July 30th and has since caused concern for a liquidation cascade
• KAS bucks BTC price trend amid market uncertainty

Kaspa (KAS) has reached new all-time highs this week despite a recent pullback for most of the crypto market in the wake of the Curve exploit on July 30th. A recent bullish surge from KAS culminated in a 10% gain on August 3rd, taking the token to its new ATH at the $0.049 price level.

CRV falls 40% in the wake of recent exploit and continues to cause concern

The wider crypto markets have retraced in recent days after news broke regarding Curve (CRV), which was the subject of a $24 million exploit on July 30th. Since then, concerns have been raised regarding collateralized loans that were taken out by Curve founder Michael Egorov.

In total, 47% of the total CRV supply is being used as collateral for a $100m loan. The position was split across several other borrowing and lending platforms, including Aave (AAVE), Abracadabra (MIM), and Frax (FRAX), and it is thought that the position could be under risk of liquidation.

if pool continues to stays at max utilization

his frax position gets auto liquidated within 5 days

will likely trigger cascades onchain

will likely liquidate his aave position and nuke crv to almost zero https://t.co/Ie7lPKWwQG

— 찌 G 跻 じ MBA, CFA, FRM, CFP, NGMI, HFSP, HENTAI ?️ (@DegenSpartan) August 1, 2023

Collectively, Aave, Abracadabra, Frax and Curve have a total value locked (TVL) of $7.5 billion. Uncertainty surrounding Egorov’s CRV loan position and its rapidly declining value in the hours after the exploit, have led to fears of a liquidation cascade on the platforms.

CRV temporarily lost 40% of its value. The price of Bitcoin (BTC) has so far fallen 2% and remains 1% down during a partial recovery. However, investors are braced for further volatility as a DeFi liquidation cascade remains possible.

KAS outperforms rest of market to post new all-time highs

Since July 29th, KAS has surged 43% to break beyond its previous all-time high of $0.0434, hitting the $0.049 price level on August 3rd before a short-term retrace.

Kaspa combines a proof-of-work consensus protocol with a directed acyclic graph (DAG) to process more transactions per second at a reduced cost when compared with pure proof-of-work blockchains.

The KAS token was listed during a fair-launch ICO in May 2022 and recently announced that it is crowdfunding its next exchange listing. The token has climbed 880% YTD and now occupies a position in the top 50 most valuable cryptocurrencies when measuring market cap.

KAS price prediction

After reaching a new all-time high on August 3rd, KAS retraced 10%. The current price of KAS is $0.04448 and the CoinCodex price prediction algorithm anticipates that KAS could maintain its recent price increases over the coming 30-day period. The algorithm expects a 2.28% price increase for KAS by September 2nd, taking its value to $0.04439.