The fast-rising cryptocurrency Kaspa has achieved two major milestones, reaching a price of $0.05 and a $1 billion market capitalization, according to community members.
The achievement comes on the back of explosive growth in Kaspa’s hashrate, which measures the computational power of its blockchain network. Within just one month, Kaspa’s hashrate surged from 1.4 to 4.05, an increase of nearly 300%.
The rise in hashrate has spurred mixed reactions from the Kaspa community. Some see it as a sign of accelerating adoption that bodes well for future gains. However, others note that the rapid hashrate growth has negatively impacted individual miners’ profits as rewards per block have decreased.
Users on forums expressed excitement about Kaspa hitting the $0.05 mark and $1 billion market cap, with many anticipating further price increases due to Kaspa’s technological advantages like its GHOSTDAG protocol and blockDAG structure. However, some comments emphasized price volatility and the challenges of sustaining growth.
Kaspa, which fair launched in 2019 without pre-mining, is a proof-of-work cryptocurrency created by Yonatan Sompolinsky, a Harvard postdoc researcher. It currently has a circulating supply of 19.18 billion coins and a max supply of around 28.7 billion.
At the time of writing, Kaspa’s price is $0.04902976, up over 3% in the last 24 hours and nearly 35% in the past week, according to data sources. With a market cap of $981 million, Kaspa now joins the ranks of billion-dollar cryptocurrencies.
While further gains are possible given Kaspa’s innovative technology and growing community, its meteoric rise in recent days may not be sustainable in the long run. The cryptocurrency will need to navigate issues like dealing with diminished returns for miners and stabilizing its price volatility.
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