While the rest of the crypto market remained muted over the last day with losses, KAVA has gone against the trend. The cryptocurrency is currently trading in the green with double-digit gains over the last day. But what could be driving this price recovery?
Mare Finance Debuts On KAVA
The only notable event that could explain the recent price action of KAVA is the announcement that the non-custodial liquidity market protocol Mare Finance launched on KAVA. This meant that users were now able to take advantage of Mare Finance’s offerings on Kava Chain.
Yields across ETH, USDC, USDT, and DAI were also quite inviting for investors, reaching as high as a 13.13% reward APR. As a result, there was increased activity on the blockchain, as shown on DeFiLlama. This change brought the weekly change in volume on the blockchain to over $5.06 million, accounting for a 10% increase on the weekly chart.
KAVA tops gainers list | Source: Coinmarketcap
KAVA’s 13.30% rise in the last day made it the best-performing digital asset in the market in the last day. Likewise, its daily trading volume also rose to $250 million across all exchanges, putting it ahead of the likes of Shiba Inu in this regard.
Will The Price Continue To Rise?
With the current price recovery, investors are showing strong bullish sentiment toward KAVA. Likewise, the digital asset continues to enjoy increasing interest from investors and has rewarded them by breaking above the $0.8 resistance once more.
KAVA returns above $0.87 | Source: KAVAUSD on TradingView.com
However, the cryptocurrency could fall back in line with the general market which would be negative for the price. If this happens, then the digital asset could quickly lose its gains from the previous day and revisit the $0.7 level once more.
The only thing that can ensure that the asset’s price continues to climb would be for the crypto market sentiment to improve once more. If Bitcoin were to reclaim $30,000, then the rest of the market would quickly follow, which would push the coin over $0.92 once more.
For now, KAVA is trending at a price of $0.87, up from yesterday’s lows of $0.76. It is currently the 28th largest blockchain by volume after moving ahead of the likes of Algorand, Aptos, and Near. Despite this, the coin is still 90.41% lower than its 2021 all-time high price of $9.12.
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from iStock, chart from TradingView.com
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