Kaspa (KAS) Rebounds to $2 Billion Market Cap: Market Dynamics Explored

In a surprising turnaround, Kaspa (KAS) has surged by 16% in a single day, reclaiming a market capitalization above $2 billion. This revival has captured the attention of the crypto community, especially given the broader market’s volatility.

A Rapid Recovery

Kaspa’s market cap jumped from a recent low of $1.60 billion to $2.02 billion, indicating a possible shift in market sentiment. The price chart displays a clear V-shaped recovery, with KAS piercing through significant resistance at $1.75 billion and $1.85 billion. Here are some key points:

Previous Decline: Kaspa saw a prolonged decline, breaking through multiple support levels.
Current Status: Trading just above $2 billion, hinting at potential next targets between $2.10 billion and $2.20 billion.
Lack of Major News: The surge seems driven by technical buying, sentiment shifts, or possibly a short squeeze.

Decrease in Exchange-held Supply Signals Accumulation

Simultaneously, the supply of KAS on centralized exchanges has plummeted to yearly lows. Here’s how it stacks up:

**Exchange Holdings:** From over 3.1 billion in mid-2024 to under 2.3 billion as of June 2025.
**Investor Behavior:** This indicates a trend towards self-custody, suggesting strong belief in further price increases.

This movement of KAS away from exchanges into personal wallets signals:

Reduced likelihood of massive sell-offs.
An environment ripe for potential supply squeezes if demand continues to outpace available supply.

Kaspa Exchange Holdings Stay Near Yearly Lows

Despite recent market volatility, Kaspa holdings on exchanges remain at their lowest levels this year.

Holders are not rushing to deposit or distribute, suggesting continued confidence and a strong preference for self-custody over… pic.twitter.com/Zb1R4ljhEH

— Kaspa Daily (@DailyKaspa) June 24, 2025

Market Dynamics and What’s Next?

With the price of KAS having performed below expectations through much of the past year, this latest development:

Highlights a potential pivot in market dynamics.
Suggests that significant accumulation might be occurring among stronger hands in the market.

The immediate support level to watch is at $1.90 billion, with resistance potentially at $2.10 billion. A sustained break above this resistance could indicate a substantial trend reversal in Kaspa’s favor.