The cryptocurrency market has spent most part of the year struggling as the market has been in a downtrend that has sent many large cap and small cap cryptocurrencies to fall from regions seen as all-time highs a year ago, to trade at price points not seen since the recovery from the COVID-19 pandemic.
Although the market has been struggling, we see notable cryptocurrencies, like KNC post gains week in, week out, defying Bitcoin, the market leader, as investors continue to invest in projects with promising potentials like KNC. KNC, the native token of the Kyber Network, in what is a very bearish week, still managed to post over 60% of gains for the week, pushing its capitalization closer to $500 million.
Three reasons for the building momentum of KNC include the integration of support for ten separate blockchain networks, the launch of a liquidity mining program with Avalanche (AVAX) and an expanding list of partnerships and protocol integrations that expand the reach of the Kyber Network.
Why KNC is raising
- One of the biggest factors providing a boost to Kyber Network is the protocol’s push to integrate with the top chains across the cryptocurrency ecosystem.
- KyberSwap, the main decentralized exchange interface on the network, now offers trading across ten separate networks including Ethereum, Avalanche, Polygon, BNB Smart Chain, Aurora, Arbitrum, Fantom, Oasis, Velas and Cronos.
- Why this is important is because interoperability has become one of the main themes driving growth not just in DeFi, but in all sectors of the crypto economy because the ability to send assets and data across multiple chains is a necessary feature in the future of DeFi, the nonfungible token (NFT) sector and the Metaverse.
- Another significant development that has helped attract increased attention and trading activity on the Kyber Network is the project’s partnership with the Avalanche Network and the Avalanche Rush Phase 2 liquidity mining program.
- The liquidity incentive program kicked off on March 21 and it includes a total of $1 million in rewards for liquidity providers.
- Avalanche is one of the fastest-growing Ethereum Virtual Machine- (EVM)-compatible networks in the cryptocurrency ecosystem. It has helped to attract more users and liquidity to the Kyber Network users by offering a low-fee alternative to Ethereum.
- Another reason for the rally and building momentum behind KNC is the continued addition of new partnerships and major protocol integrations that are helping to spread the reach of the network.
- On April 7, it was announced that KyberSwap integrated with Uniswap v3 on the Ethereum and Polygon Network, bringing the most active decentralized exchange into the KyberSwap ecosystem.
- The project also revealed a new partnership with the Bondex professional network and Kyber Ventures, the investment arm of the Kyber Network, and established a working relationship with Pegacy, a popular NFT racing game.
Although there were other gainers for the week like BNB, TRX, LTC, UNI, XMR and XTZ from the top 100 by market capitalization, they do not compare to KNC, as they all only posted single-digit gains.
KNC has also seen a spike in its transaction volumes as well as interest as it is one of the top 10 trending coins in the cryptocurrency market, according to CoinMarketCap. Despite the current rally, the token is still down over 55% from its all-time high of $5.72 it created almost a month ago, as a result of the bearish market condition of the entire space. However, in just 10 days, the token has gained over 100% in value after hitting its all-time low.