- Kava crypto token held quite well on Wednesday after the latest community vote.
- The network's DeFi TVL has jumped in Kava terms.
Kava price drifted upwards on Wednesday after the community members voted on a major ecosystem proposal. The token jumped to a high of $0.8315, which is a few points above the year-to-date low of $0.7650. Still, like other tokens, Kava remains significantly below its all-time high.
KAVA proposal 125 passes
The main reason why Kava crypto price is soaring is that the members of the community voted for Proposal 125. This proposal, which was submitted on February 21, will provide more incentives for validators in the network.
It simply means that these validators have an incentive to move from Amazon’s AWS or Google Cloud to Akash Network. Akash is an open network that makes it possible for users to buy and sell computing securely and more efficiently. Validators who will move to Acash will receive $1 million in AKT tokens.
This is a major milestone for the developers as they seek to decentralize the ecosystem. Unlike Google Cloud and AWS, Akash is a decentralized network that is managed by a decentralized autonomous organization (DAO).
Kava DeFi ecosystem is doing well
The other reason why Kava price is doing well is that the network’s total value locked (TVL) in DeFi is doing well. According to DeFi Llama, assets in Kava have jumped to K266 million despite the recent crypto sell-off.
This is the highest it has been since January, meaning that there is increased activity in the network. In dollar terms, however, the TVL stands at $215 million, which is close to its lowest level in months. The top dApps in Kava are Kava Lend, Kava Mint, Mare Finance, and Kava Earn.
For starters, Kava is a unique blockchain that seeks to marry two of the most popular blockchains in the world. It combines the capabilities of Ethereum, including its safety and efficiency with the speed of Cosmos. Cosmos has been used to build some of the top dApps in the industry like Band Protocol and ThorChain.
Looking ahead, Kava price will react to the broader factors that are affecting the crypto industry. The most important is the ongoing worries that the Federal Reserve, which has committed to maintaining a hawkish tone in the coming months. The support and resistance levels for the token are $0.7631 and $0.8800.
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