The investment bank’s crypto spin-off has been pumping in the three-digit range for over a week. The market update.
While the investment bank considers cryptocurrencies to be “overvalued”, the price of its spin-off Kadena is currently skyrocketing. In contrast to the prominent supporters of Kadena, the project is still rather unknown in the crypto space. However, the coin is by no means a novelty. Of the JPMorgan– Offspring started in 2016 and emerged from the “Blockchain Center of Excellence” of the investment bank.
Kadena is currently fighting for a place in the top 50 in the crypto ranking and fluctuates between 52nd and 49th place with a market capitalization of around 3.9 billion US dollars. The coin is trading at $ 24.51 at the time of writing. While the price only climbed a modest 3 percent on a daily basis, the price change on a weekly basis can record a steep increase of over 120 percent. As a result, Kadena hit a new all-time high of $ 28.25 overnight on November 11th.
If you look around for the usual suspects in the crypto market, the atmosphere here is rather relaxed with no major outliers. Crypto leader Bitcoin (BTC) is currently at around 64,435 US dollars and thus recorded a price decline of 1.24 percent compared to the day. The price of Ethereum (ETH) hardly changed in the last 24 hours and is currently trading at $ 4,715.37. Solana (SOL) and Cardano (ADA) both lost around 5 percent compared to yesterday. The Memecoin faction is a bit divided. While Dogecoin (DOGE) shows almost no change in the last 24 hours, Shiba Inu (SHIB) recorded a slight increase of around 4 percent.
Launch of the Kadena Chainweb mining client
Although it is not always possible to make clear causal connections between certain developments in the crypto market, there is a guess as to why Kadena was able to record a big plus on a weekly basis. Because on November 8th, the crypto project launched the so-called chainweb mining client.
Kadena tries to solve the scaling problem in the Bitcoin network, but at the same time to maintain the security mechanisms. The public blockchain of the Chainweb crypto project is a Layer 1 solution that uses the proof-of-work (PoW) consensus mechanism and at the same time benefits from so-called “sharding”. This feature has the potential to reduce the processing time of transactions by dividing the data to be processed in the network into several “shards”. In the Kadena network, this is noticeable through “braided” chains, which make it possible to drive up the TPS value. Kadena currently has 20 such sub-chains. However, there are plans to increase this number to 100.
The new Upgrade could declare war on the more centralized mining pools in the proof-of-work network. Because with the Chainweb mining client it is possible for users to bypass the said mining pools.