As decentralised finance protocols (DeFi) take on a more prominent role in driving total cryptocurrency market cap, Kyber Network eyes the $2 high last seen in August 2020.
Currently exchanging hands at $1.33 (Binance), KNC surged 35% in 7 days.
The KNC token had been in a period of consolidation since October, but the tables quickly turned in early January when KNC closed well above the $1 mark, surpassing its local high.
At the time of writing, KNC bulls are attempting to instantiate a macro trend reversal. The next trading block of note is the $1.50-$1.70 range, where sell-side pressure from various bag-holders might increase.
To cement this next attempt at reclaiming the $2 mark, buyers will have to show up in force at the $1 mark in the event of a market turnaround. Either way, the KNC development team have provided impetus for KNC holders to be optimistic.
Kyber Network developers have been busy!
The decentralised exchange platform has struggled against rivals, but still retains a respectable ranking on defipulse.com, ranked among the top 60 DeFi projects.
Briefly, Kyber network is a decentralised liquidity protocol that allows traders to swap tokens for ether instantly without having to use exchanges. After their ICO in 2017, the project introduced various liquidity pools called “reserves”.
On the one hand, market makers such as liquidity pools and token holders provide aggregated liquidity to the reserves. And on the flip side, market takers such as decentralized app (dapps), and exchange wallets access and trade these assets.
Notably, various competing decentralized exchanges are on the market, but the protocol developers are by no means stationary.
With these improvements to the network, market makers who might be less familiar with the technicalities of on-chain smart contracting can make use of Kyber’s operation without the operational barriers to entry that can be off-putting.
In short, this means more liquidity in a growing decentralised ecosystem with an insatiable appetite.
Catch you next time.