Kaspa, a proof-of-work cryptocurrency utilizing the GHOSTDAG protocol, has generated significant hype in recent months. However, one analyst who goes by the name “KaspaNirvana” has decided the project no longer aligns with his interests. In a post on social media, he explained the reasons behind his decision to move on from Kaspa.
Limited DeFi Options Underwhelm Analyst
“Kaspa is soooo over hyped!!” tweeted KaspaNirvana. “Nothing there. No smart contracts, no dapps, no degen plays, no launchpads, no liquidity pools!”
While praising some of Kaspa’s technological capabilities, the analyst took particular issue with its lack of decentralized finance (DeFi) offerings. Features commonplace across other blockchain networks like automated market makers, yield farming programs, token issuances, and gambling dapps remain absent in the Kaspa ecosystem.
“All you can do with it is pay stuff and send it to one another,” continued KaspaNirvana. This proved underwhelming for the DeFi degen, prompting his exit.
Fast, Secure, Scalable – But Limited Functionality
KaspaNirvana did acknowledge strengths in Kaspa’s underlying technology. As a blockDAG network leveraging the GHOSTDAG protocol, Kaspa provides security through distributed ledgers like blockchains while allowing parallel block production.
Doge2014 raises 500K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +This architecture facilitates performance metrics including high transaction throughput, minimal confirmation times down to seconds, and strong network scalability. Kaspa also implements unique features such as SPV proofs, subnetwork support, and a musical monetary policy.
However, the network’s current lack of expressive smart contract capability limits real-world functionality. For KaspaNirvana, fast and cheap payments failed to justify heavy involvement in the still-early-stage project.
Hype Cycle Common Among Emerging Cryptocurrencies
The hype cycle often observed across cryptocurrency markets frequently creates unrealistic expectations for new networks. Developers typically prioritize building secure base-layer protocols over advanced functionality meant to attract end users.
As such, analysts like KaspaNirvana who enter projects during the “hype phase” may become disappointed with actual maturation progress. This contributes to price volatility and assets being potentially overvalued during spikes of publicity.
While still a work in progress, Kaspa continues gaining traction as a payments-focused cryptocurrency thanks to its DAG architecture. But the network must still establish richer application potential to satisfy stakeholders like KaspaNirvana in the long run. For now, his interests appear aligned elsewhere in more developed DeFi ecosystems.
You may also be interested in:
- LINK Comes Back Fighting: Chainlink Technical Analysis Post Market Crisis
- Stratis’ Strax Surges Over 60% in Two Days Following This Key Announcement: Why The Move May Not Last
- Bitcoin Might Be Down, But $BTCMTX Continues Rising After Crossing $7.4 Million In Funding – Here’s Why
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
