Kaspa (KAS) is almost always in the spotlight, but this time it’s because of on-chain scarcity and technical strength.. With just 0.78% of the circulating supply moving in the past 24 hours, daily active supply is approaching record lows, setting the stage for what many are calling a looming supply shock.
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Supply Shock Brewing: What the Data Shows
According to Kaspa Report, the percentage of active supply has dropped steadily since late April, now sitting below 1%. This means less and less KAS is being moved or sold, so holders are getting tighter with their coins. That kind of behavior typically precedes major price moves, especially when paired with growing demand.
Adding to the bullish case, Kaspa’s stock-to-flow ratio doubles every year thanks to its unique emission schedule. Unlike Bitcoin’s halving every four years, Kaspa cuts its block reward annually, ramping up scarcity at a much faster rate. Yet, because Kaspa runs on a block-per-second DAG architecture, it still functions as a fast, feeless medium of exchange – a rare balance between usability and long-term value.
Kaspa’s daily active supply is once again approaching record low levels, setting the stage for continued supply shock.
— Kaspa Report (@KaspaReport) May 23, 2025
Kaspa will persist in a constant state of extreme marketplace scarcity as its stock-to-flow ratio doubles every year.
Yet, despite this state of extreme and… pic.twitter.com/gAUNBcsmah
The Kaspa price is currently trading around $0.115, up slightly on the day. More importantly, it’s holding firmly above its 200-day moving average at $0.109, which now acts as key support.
After breaking this long-term resistance earlier this month, KAS has entered a period of consolidation. The RSI is hovering in the mid-50s, signaling neutral momentum with a slight bullish lean. If bulls defend the 200MA, a retest of the $0.125 to $0.13 zone could come quickly.
Kaspa Price Prediction: Short-Term Outlook
If KAS stays above $0.109, upside targets are:
- $0.125 (first resistance)
- $0.13 (previous high)
If it breaks down below support, watch for:
- $0.102 (mid-range support)
- $0.095 (structural demand zone)
But given the combination of low active supply, rising stock-to-flow, and solid technical footing, the path of least resistance seems to be up.
Kaspa’s narrative is catching fire again – not through hype, but through data. The chain is showing signs of extreme holder conviction, and its monetary model continues to strengthen. With circulating supply movement at near-record lows and price sitting above the 200-day moving average, KAS could be setting up for a sharp move.
Read also: Is Kaspa Price Ready for a June Rally? These Signals Say Yes
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