YEREVAN (CoinChapter.com) — Kava Labs’ native asset KAVA corrected lower by more than 20% after topping out at $9.10 earlier this week. Still, its prospect of resuming its uptrend appears high ahead of a key project launch.
Dubbed as Kava Swap, the project proposes to act as a “cross-chain liquidity hub for all DeFi apps and financial service,” i.e., an interoperable Autonomous Market Making (AMM) Protocol. In doing so, it expects to introduce capital aggregation, which, according to its May announcement, would enable users to deploy value “seamlessly” across different blockchain ecosystems via a liquidity pool.
“Our architecture connects assets and ecosystems so that anyone can earn high yields and swap seamlessly across blockchains. We are building a highly extensible, complete, and secure liquidity infrastructure to provide a safe, efficient, and streamlined user experience,”said Brian Kerr, Chief Executive Officer of Kava Labs.
The announcement marked a growing need to connect blockchains to create a scalable and more accessible global ledger system. As a result, many projects have recently seen their tokens rallying higher after announcing or launching cross-chain operable tools. For instance, THORChain and Ren have seen their values skyrocketing based on the same hype.
“In the future, CEO Brian Kerr hopes to be able to integrate Kava with institutions like PayPal and Fidelity to bring Kava to the masses,” wrote Tim Cole, a researcher at data analytics platform Messari, in a May note, adding that:
“The four financial services that Kava plans to offer in the near future in loans, a Money Market, an AMM, and a Robo Advisor have the potential to make it into a well-rounded decentralized bank.”
KAVA FOMO ahead?
The optimistic fundamentals appear to provide KAVA bulls a backstop as it corrects from record highs. Meanwhile, technicals also show KAVA/USD holding solid support at $7.42.
A breakdown move below the interim support level risks crashing the cryptocurrency to the next line of defense at $5.63. Conversely, a bounce-back would push prices towards $10.32, thereby setting a new record high.