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Kava network’s governance token, KAVA, has registered massive gains amid the ongoing market-wide rally. The token has risen drastically, even when most coins surrendered to the just-faded bearish trend.
KAVA has outperformed most top coins by observing a nearly 37.27% price increase over the past 30 days, and could still see more gains. At the time of writing, KAVA’s price has increased by 15.05% over the past 24 hours. Whether it would sustain its rally depends on the market sentiment in the coming days.
Ecosystem Funding And Improved Sentiment Voted For KAVA’s Price Rally
A recent tweet showed that KAVA emerged as a top gainer in Cosmos IBC Networks over the past seven days. Its developer incentive funds have been among the factors sustaining its price rallies over the past few days. On March 10, the Kava network launched a $750 million incentive fund for developers that want to build on blockchain. The rewards would be distributed among top protocols monthly, depending on their network usage.
Related Reading: Jim Cramer Remains Bearish Despite BTC Rally, Here’s Why
Another factor influencing KAVA’s price action is the recent increase in market sentiment after US bank stocks plummeted. The Fed’s latest approval of a lending initiative to troubled banks suggests that the much-anticipated interest rate hike bps might not be as hawkish as expected.
Many speculate that the US Federal Reserve would soften its inflation-curbing strategy in response to the current economic conditions. This outcome might be obtainable now that three top US banks collapsed due to liquidity issues.
According to data released on Friday, March 10, the US recorded 311,000 additional jobs, and the unemployment rate remained at 3.6%. Despite the massive employment, the wage push inflation is reducing. However, analysts stated that the US inflation rate for February only slightly reduced.
Even at that, the recent bank issues and the Fed’s interference suggest the hawkish rate hikes might reduce.
A Sustainable Market Sentiment Could Set KAVA Up For More Rallies
More so, a drop in bank stock could water the grounds for mainstream cryptocurrency adoption since it can provide an alternative investment option. Dwindling confidence in traditional financial institutions and increased demand for safe investment options can drive more traction to crypto and boost market sentiments. Today, crypto market sentiment has improved in response to these factors.
Cryptocurrencies are basking in the current favorable atmosphere as the global crypto market cap recorded an 11.94% increase over the past 24 hours. This improvement came after several days of steady decline in value.
KAVA is trading at $1.18, depicting a 16.32% increase in the last 24 hours. Historical data suggest the coin observed notable price gains since February, before the downturn. KAVA might gain more wins if the market sustains the bullish sentiment in the coming days.
