Kadena (CCC:KDA-USD) is a $2.4 billion market capitalization cryptocurrency that has moved significantly higher in the last month. As of Nov. 2, it was trading at $6.95 per KDA-USD crypto token, but by Dec. 2 it was at $16.66. That represents a gain of 140% in the space of just one month.
In the past two months, Kadena has risen from $1.7765 per KDA token to $15.21 today, giving it a gain of 8.5 times.
This is an amazing return for investors over this period.
Moreover, this may be due to the fact that Kadena has announced changes to its protocol that will allow it to take on new use cases. For example, according to Cryptoslate magazine Kadena made changes that will give both users and developers the ability to mint and buy non-fungible tokens (NFTs).
In addition, Kadena users will be able to do token staking, which is a form of a smart contract that allows investors to earn interest on their tokens. It will also be able to deploy other types of decentralized finance (DeFi) or decentralized applications (DApps) based on the protocol changes.
Stand Out Features of Kadena
Kadena was started two years ago by two former JPMorgan (NYSE:JPM) executives, Stuart Popejoy and Will Martino. They had both previously run JPMorgan’s Blockchain Center for Excellence, the American investment bank’s in-house blockchain team.
According to Decrypt online magazine, it has both a private blockchain (where the public can’t view transactions) known as “Kuro” as well as an open source smart contract component. This second part, the public chain, is in a special smart contract language called “Pact.” It allows enables anyone with a rudimentary understanding of programming to draft their own smart contract.
Moreover, Kadena claims to be able to handle huge numbers of transactions based on its blockchain protocol. For example, Kadena claims to be able to handle 480,000 transactions per second (TPS). This dwarfs even that of its competitor blockchain, Solana (CCC:SOL-USD). Solana can only do 50,000 TPS.
This huge TPS speed is due to Kadena’s ability to combine numerous sub-chains quickly to support the main chain. The devs call this combination of 20 subchains “braided chains.”
Now, with Kadena’s new capabilities to do both NFTs and DeFi contracts, the appeal to developers to use Kadena will be even greater. This realization has been feeding through to a higher KDA-USD price.
Where This Leaves KDA-USD
Kadena soon hopes to move to a 100 subchain structure. This 5x increase in subchains should propel its already rapid transaction speed even higher. Once that happens, the KDA-USD price will also likely move substantially higher. The reason is that it will have the ability to capture a large market share in both the DeFi and the NFT space.
However, this could take some time.
In the meantime, it appears that some KDA-USD holders are doing tax-related selling. That is likely why Kadena has come well off of its Nov. 11 all time high of $28.25.
This selloff could go on for some time. However, once investors realize that Kadena could end up taking a huge market share in the NFT and smart contract arena, the crypto’s price could turn around.
After all, Kadena’s website has a great marketing line for developers: “Kadena makes blockchain work for everyone. Our ecosystem provides the security of Bitcoin, virtually free gas, unparalleled throughput, and smarter contracts.”
The ability of Kadena to offer no-fee transactions at very fast speeds is going to attract many more users and developers. Developers in particular will likely find all kinds of new use cases for the coin’s new decentralized feature set.
Taken all together, this will propel Kadena much higher than where it is today.
On the date of publication, Mark R. Hake did not hold any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.