Kaspa is not performing as it once did. While many altcoins, such as Aptos, have seen a healthy recovery this week, the KAS price has dropped by 8.5%, now trading in the $0.13-0.135 range.
So, why has the Kaspa price been moving sideways lately? Crypto YouTuber Phil Prince has shared his thoughts on the current situation surrounding KAS.
Kaspa has been trading sideways and is currently at range lows, despite the broader market showing strength and positive news for Kaspa. This sideways movement has persisted since June, continuing through the summer, a period typically marked by low activity in the crypto markets.
Despite the stagnant price, there have been positive developments within the Kaspa ecosystem. The KC20 token standard has officially launched.
Although its beta version encountered technical issues, it was successfully relaunched with improvements, including a Telegram bot that streamlined transactions. KC20 meme coins like Natur have seen significant gains, with some tokens experiencing 6x to 7x increases from minting prices. This indicates potential for more activity in the future, especially as the broader crypto market becomes more dynamic.
Read also: YouTuber Says Kaspa (KAS) Is ‘Easily’ Top 5 Crypto – Here’s Why
Factors Contributing to Kaspa Price Stagnation
One key reason for the sideways price movement is capital rotation. Funds from Kaspa have been moving into KC20 tokens, creating internal circulation within the Kaspa ecosystem rather than attracting new capital. This has put bearish pressure on Kaspa’s price, contributing to its stagnation.
Additionally, market dynamics have shifted. Although Kaspa experienced a significant rally during the bear market (up 4,400%), it is now more closely following Bitcoin’s price movements, unlike previous periods when it moved independently.
Future Outlook and Potential Catalysts
Looking ahead, several potential catalysts could impact Kaspa. A partnership with Change is expected to introduce a decentralized exchange (DEX), allowing direct swaps between KC20 tokens. This could simplify trading and create arbitrage opportunities, leading to more liquidity in the ecosystem.
On the exchange front, Kaspa is now available on Pionex for U.S. traders, offering a fiat (USD) trading pair for the first time. This could help drive further adoption in the U.S. market.