Analyst “𝐏𝐫𝐨𝐬𝐞𝐥𝐲𝐭𝐞” shared an intriguing Kaspa chart today on X, previously known as Twitter. He made a comparison between KAS’s growth and Bitcoin’s early days.
Rapid Growth and Stabilization
The chart highlights Kaspa’s Power Law R-squared (R²) value over time, which tracks how closely the Kaspa price action aligns with a predictable trend based on a mathematical model. This model likely relates to the power-law distribution commonly seen in financial markets.
In its early stages, Kaspa’s R² value was highly volatile, with significant fluctuations during the first few months. This period of instability saw R² values dipping to low levels, sometimes nearing zero. However, by late 2022 to early 2023, a noticeable shift occurred as the R² began to stabilize, showing a consistent upward trend.
The Cumulative Evolution of #Kaspa ‘s Power Law R^2 Over Time@KaspaCurrency $KAS
Cumulative R² Evolution: This plot shows how Kaspa’s (R²) is evolving over time. R², or the coefficient of determination, measures how well a model explains the variance in data—in this case,… pic.twitter.com/GRdlOB4unY
— 𝐂𝐫𝐲𝐩𝐭𝐨 𝐏𝐫𝐨𝐬𝐞𝐥𝐲𝐭𝐞 (@Crypt0Proselyte) October 6, 2024
One of the most notable aspects of the chart is the rapid rise in R² values starting from mid-2023. By late 2024, the R² surpasses 0.95, signaling that Kaspa’s price action has become highly predictable within a relatively short time frame.
Read also: Where Is The Bitcoin Price Headed Next? Analyst Predicts $68k per BTC ‘Next Week’
Technological Advantages Driving Growth
The analyst attributes Kaspa’s rapid growth and stabilization to several key factors:
- Faster block times
- More efficient network
- BlockDAG structure
These innovations may be helping Kaspa mature more quickly by reducing inefficiencies in its consensus mechanism. As”
Source: captainaltcoin.com