Kava’s utility token, KAVA, has been on a strong upward trend in recent days, despite the pessimistic market sentiment of the past week. The cryptocurrency has maintained this momentum and recorded an impressive price increase of 31%. To cap off a largely positive week, the Layer-1 ecosystem submitted a proposal to initiate Phase 1 of Kava Horizon.
The KAVA token has seen a positive price increase lately, gaining more than 30% of its value over the past seven days. For long-term investors, this could be seen as a kind of recovery, as the coin did not perform well until a week ago.
To put this into perspective, the token has only risen 1.6% in the last month. In fact, KAVA’s price was steadily declining until May 8, losing almost 29% of its value in three weeks.
However, an upward movement in the price that began a week ago has pushed the token back up to its previous high of $0.96. At the moment, KAVA is valued at $0.969, which represents a 4.7% increase in the last 24 hours.
This recent price increase has been linked to the upcoming mainnet upgrade. Scheduled for May 17, 2023 (3 p.m. UTC), the upgrade, known as Kava 13, aims to bring architectural improvements to the security, scalability, and functionality of the network. As a result, this will help developers scale and speed up their protocols and improve the user experience throughout the ecosystem.
According to CoinGecko data, KAVA has a market capitalization of $495.5 million, making it the 90th largest cryptocurrency in the market. However, it is worth noting that the token’s daily trading volume decreased by 51.7% to $21.9 million in the last 24 hours.
On May 13, Kava announced its plans to implement the first phase of Kava Horizon. The proposal, known as “Proposal 141,” is now available for community voting. If this proposal is approved, all emissions (including POS rewards, Rise rewards, grants, and other bonus emissions) will be permanently stopped until December 31, 2023.
However, before this is implemented, two independent foundations will be established to oversee the continuous development and maintenance of the permissionless and decentralized blockchain. These two foundations will receive the bulk of emissions until they are permanently stopped by the end of the year.
A future software upgrade introduced after Proposal 141 will control the flow of all rewards accumulated from the above-mentioned foundations.