The price of KAVA continues to rise amid growing excitement over the upcoming launch of the Ethereum and Cosmos coins.
The protocols in the Cosmos ecosystem have grown significantly in 2022 due to increased focus on blockchain interoperability and interoperability with the Ethereum network.
One of the protocols that has gained momentum since mid-March is Kava, a project that is developing a cochain architecture for the Cosmos and Ethereum networks.
Data from Cointelegraph Markets Pro and TradingView shows that the price of the native Kava KAVA token rose by 72.3% after hitting a low of $2.92 on March 13 to a daily high of $5 on April 8 and hitting $0.03.
KAVA/USDT 1-day chart. Source: Trading View
Three reasons for the rise in price and momentum of KAVA are the beta launch of the Ethereum collaborative network, the launch of a $750 million developer incentive program, and a series of partnerships and protocol launches that reflect the expansion of the Kava ecosystem.
Ethereum beta launch
One of the most anticipated events in the kava ecosystem has been the successful completion of the alpha phase of the launch of the Ethereum coin.
The Ethereum coin provides support for Ethereum Virtual Machine (EVM) smart contracts, while the Cosmos coin provides support for the Tendermint consensus mechanism and Interblock Communications (IBC). The translator module connects the chains and ensures seamless communication between networks.
The Ethereum mainnet launch is expected to take place on May 10th.
Kava Launches $750M Developer Incentive Program
The second reason for KAVA’s growing strength was the March 3 launch of Kava Rise, a $750 million developer incentive program designed to attract developers from decentralized finance (DeFi), gaming and non-gaming fungible projects to join the kava community.
Kava Rise is an on-chain rewards mechanism that will distribute 62.5% of all block rewards to developers using the Kava Ethereum and Cosmos co-chains as part of the protocol’s effort to make the network developer-owned. The remaining 37.5% of block rewards are shared among stakers.
The incentive program is expected to launch with the Kava 10 update, which will also include the launch of Cosmos and Ethereum coins on the Kava mainnet.
Related: 3 reasons why Cosmos (ATOM) price is close to a new all-time high
New partnerships and launch protocols
The third factor that helped boost demand for KAVA was the addition of new partnerships and protocols for the Kava network.
Recent protocols to be launched on the Kava cochain architecture include the OpenBiSea NFT marketplace, the DexPad decentralized finance launchpad, and the WePiggy DeFi piggy bank.
Other recent launches on Kava include the ForTube DeFi multi-chain lending protocol, the Ruby protocol enabling the first algorithmic stablecoin for the Kava Ethereum virtual machine (EVM), and the integration of the Ethereum coin with the Ren protocol.
Cointelegraph Markets Pro VORTECS™ data began pointing to a bullish outlook for KAVA on April 1, ahead of the recent price spike.
Exclusive to Cointelegraph, VORTECS™ Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS™ score (green) compared to KAVA price. Source: Cointelegraph Markets Pro.
As you can see in the chart above, the VORTECS™ valuation for KAVA started to rise on April 1, about 94 hours before the price increased by 25% over the next three days.
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