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Layer one networks recorded notable dips yesterday, and Kadena (KDA) reported a double-digit loss. However, the token has recorded a strong recovery, having gained 12% during the past 24 hours.
The recent recovery comes as the crypto market rebounds from previous lows. The cryptocurrency market cap has reclaimed the $1.3 trillion mark. With Bitcoin being back to trading at $30,000, other altcoins are following suit and reporting notable gains.
Kadena recovers from layer 1 crypto dip
KDA is the native token of the Kadena blockchain. Kadena is a proof-of-work blockchain network created by two former employees of JP Morgan. Stuart Popejoy and Will Martino worked at JP Morgan as leads for the firm's Blockchain Center for Excellence.
The Kadena network attempts to be different from the other PoW blockchains by combining the consensus with directed acyclic graph (DAG) principles. The network claims that it can offer a high level of security to the Bitcoin network. It also provides a high transaction throughput that makes the blockchain attractive for enterprises.
KDA has been one of the worst-performing tokens this year. The token reached an all-time high of $27.64 in November last year. The entire market was on an uptrend, and the global market cap hit an all-time high of above $3 trillion. However, KDA's price has registered a 90.5% decline in value since then. At the time of writing, KDA was trading at $2.69.
Data from CoinGecko shows that KDA is the 109th largest cryptocurrency, with a market cap of around $485 million. Last week, after the entire market tanked following the collapse of LUNA and UST, KDA dropped to a one-year low of $1.38 before gaining to $3.34 on Sunday.
Kadena was not the only layer 1 project that tanked on Thursday. Other layer one networks such as Polkadot, the Near Protocol, Celo, Fantom and Harmony One recorded dips. However, these projects have since recovered. DOT, NEAR and CELO have gained by 4.4%, 3.1% and 8.4%, respectively, while FTM and ONE have gained by 7.2% and 6.2%.
Bitcoin has also gained slightly during the past 24 hours, and it is back to trading above $30,000. On the other hand, Ethereum has resumed trading at above $2000. The recovery is pulling up altcoins, with most of them recording slight gains.
Kadena launches KDSwap
The poor performance of Kadena earlier this week was unexpected, given that the network announced the launch of the KDSwap decentralized exchange. The DEX was launched on Monday on the Kadena network. Such events usually trigger gains for the underlying token because traders are convinced that the coin's utility will be expanded.
While the launch of the DEX was good news to the Kadena community, the launch was not as smooth as would have been expected. The Kadena team published a blog post detailing the hurdles faced during the launch of this DEX. Users complained of bugs within the protocol that prevented normal trading.
The other issues traders face within the DEX include a lack of uniformity in the charts and prices within the protocol. Users that logged into the DEX from different geographical locations reported that charts did not illustrate the correct value of the platform's native token. These issues could be the reason why Kadena failed to surge despite the launch of the DEX.
The team has assured its users that an upgraded version of the DEX that has patched all the listed bugs has been released. The new version would contain additional features such as multi-asset staking, and additional trading pairs would be integrated within the coming weeks.
To learn more visit our Investing in Kadena guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.