The Kadena price has rebounded in the past few days. The KDA token has jumped to $20, which is about 28% above the lowest level this week. It is slightly below the all-time high of $28, bringing its total market cap to more than $3 billion.
What is Kadena and is it a good investment?
The smart contract industry has seen strong growth this year. While Ethereum is still in a pole position, other smaller networks are gaining momentum. Most of these competing projects are attempting to win by building platforms that are easy to use and relatively faster.
While Ethereum is a good smart contract platform, it has its limitations and challenges. For example, it is one of the slowest smart contracts in the market today. It can process less than 20 transactions per second. Its transactions are also relatively expensive.
Newer projects like Solana, Binance Smart Chain (BSc), Avalanche, and Algorand are better than Ethereum in a number of ways. They are faster, cheaper to transact, and are highly interoperable with other chains.
This is also the claim being made by Kadena. For starters, Kadena is a smart contract platform that enables developers to build quality projects. The main reason why developers are turning to it is the relatively lower cost and blazingly fast speeds. For example, while Solana can handle about 2,000 transactions per second, Kadena can process about 480,000.
Kadena uses a smart contract known as pact. It describes pact as a “human-readable turing incomplete smart contract language purpose-built for blockchains with powerful security features.” This makes it one of the best platforms today.
Still, the challenge is that Kadena is still relatively new, faces strong competition, and has no major platforms to show. This means that there are no major blockchain projects built on Kadena.
Kadena price prediction
In my previous KDA price forecast, I warned that a pullback was imminent. This accurate was accurate.
The chart below shows that the Kadena price surged to an all-time high of $28.60 this month. This was a remarkable performance since it was about 33% above the lowest level in September this year. It then dropped by about 43% as some holders took profit.
As it dropped, Kadena formed what seems like a bullish flag pattern. In price action, this pattern is usually a bullish sign. Therefore, I suspect that the coin will keep rising in the near term as bulls target the all-time high. This will happen as some of the previous sellers come back in.
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