Layer 1 Blockchain Kava Falls Ahead of Mainnet Upgrade, Here’s Why

In a sudden turn of events, the layer 1 blockchain project Kava has experienced a significant drop in value, leaving traders and investors wondering the reason behind this downward trend.

In the last 24 hours, layer 1 blockchain native token, KAVA has plunged almost 4% along with the rest of the global crypto market. As Kava prepares for an imminent mainnet upgrade, the crypto community eagerly awaits the improvements and advancements ahead.

Reasons behind Kava’s price drop in the last 24 hours

One of the primary factors contributing to Kava’s decline over the past 24 hours is the profit-taking behavior of traders and investors. Kava had witnessed a remarkable rally in its price in the past week, up by 28%.

The rally is suggested to have caused many market participants to cash in on the gains, causing the price of Kava to plummet. Such profit-making activities are expected in volatile markets, and traders often seize the opportunity to realize their profits during price increases.

Meanwhile, it’s worth noting that Kava’s price decline is happening within the broader context of a downward trend in the overall cryptocurrency market. Many digital assets including Bitcoin (BTC) have recently experienced price corrections and volatility, potentially affected by various market factors and investor sentiment.

The interconnected nature of the crypto market means that price movements in one asset can have ripple effects on others. Consequently, Kava’s value may have been affected by the prevailing market conditions, leading to the recent drop.

Summary: The Kava 13 Mainnet Upgrade

The upcoming Kava 13 upgrade introduces several key improvements aimed at enhancing capabilities and user experience across the Kava ecosystem. This includes Kava EVM 2.0 focused on scaling and performance enhancement.

Kava recognizes the need to scale quickly to accommodate the growing traffic from both the Cosmos and Ethereum networks. The Kava EVM 2.0 upgrade addresses this demand by optimizing the full node software, ensuring faster and more reliable performance for RPC providers and validators.

Another important improvement the upgrade introduces is an improved Cosmos-Ethereum Bridging. The bridge is said to enable users to seamlessly send native Cosmos resources to a wide range of protocols deployed on Kava EVM.

By reducing reliance on third-party on-chain bridges, this enhanced bridge experience minimizes the number of steps, wait times, and uncertainty associated with asset transfers.

Advanced Vault Control is included in the improvements Kava wants to launch via the upgrade. Vault which is controlled by Kava DAO is getting a significant upgrade in the form of improved functionality.

The Kava 13 upgrade enables the DAO to handle tasks such as distributing rewards, adding liquidity, facilitating the exchange of assets, diversifying portfolios and more. According to Kava, the upgrade is due to the ecosystem registering massive growth over Cosmos and Ethereum in the first quarter of 2023.

This growth required demand in a greater need for speed, security and performance, features that the Kava 13 upgrade also known as K13 wants to offer.