Kyber Network (KNC) price has increased by 22 percent in the last 48 hours. There are different factors that trigger the uptrend in the cryptocurrency.
Kyber Network (KNC) rose by 22 percent in the past two days to $ 1.92. The cryptocurrency that was later corrected was trading at $ 1.76 at the time of writing. But analysts emphasize that the rise could continue.
It seems that there are three key factors behind the rally of KNC, one of the best performing altcoins of recent days. Apparently, three important factors supporting Kyber Network’s latest trend are increasing popularity in Asia, appropriate technical structure and staking.
Popularity is Increasing in Asia
According to Doo Wan-nam, Kyber Network is one of the most popular DeFi cryptocurrencies in South Korea. Pioneering Asian business development at MakerDAO, Doo said:
“It may be a surprise for some, but Kyber Network is one of the most talked about DeFi in more retail channels like CoinP in Korea.”
A strong pursuit from a large market like South Korea was one of many catalysts that fueled the recent rise of KNC.
Strong Market Structure
Popular analyst and trader Michael van de Poppe (Crypto Michael) has announced that he can continue the rally of Kyber Network on July 17. Poppe highlighted the flexible support level of KNC at 0.00017 BTC as an important line of defense. Kyber Network has remained above the 0.00017 BTC level since then and rose to 0.000203 BTC that day. Poppe used the following statements:
“I think we will continue to recover towards the highs.”
This one is acting in a very tiny range.
The breakthrough of the 18000-18250 sats level and I think we’ll continue rallying towards the highs. pic.twitter.com/huNVkbX4GT
— Crypto Michaël (@CryptoMichNL) July 17, 2020
Support from Major Exchanges
On July 6, the Kyber Network developer community announced the launch of Katalyst and KyberDAO on the main network. He marked the activation of staking in the blockchain protocol, which rewards users by joining the network.
The team said:
“KyberDAO will strengthen the Kyber and DeFi community with a real share in Kyber’s future and allow them to directly contribute to our development.”
The staking mechanism in Kyber Network was arguably the biggest factor in the last rally of KNC. Many top cryptocurrencies associated with DeFi experienced huge rallies in July. However, after the application mechanism was activated, KNC inflows to exchanges such as Binance increased. While foreign currency inflows often refer to sales pressure, researchers at Santiment explained that this may not apply to KNC.
The researchers wrote:
“Binance launches staking for #KyberNetwork. Binance staking looks smooth and doesn’t lock KNC like #KyberDAO. This is very convenient for users who want to react to market conditions. ”
Low sales pressure on KNC, solid market structure and increasing staking demand are potential factors that can maintain the momentum of Kyber Network.