The world of cryptocurrency witnessed a surge in Kaspa (KAS), with its price jumping nearly 18% in the last week. This sudden bullish trend coincides with a major announcement from industry leader Marathon Digital (MARA), stirring excitement through the crypto ecosystem.
On Wednesday, June 26th, Marathon Digital, a behemoth in Bitcoin mining, sent ripples through the crypto market by revealing they had begun mining Kaspa. This strategic move signifies a potential diversification of their revenue stream, venturing beyond the well-trodden path of Bitcoin.
Kaspa, a fellow proof-of-work cryptocurrency, boasts a unique advantage: speed. With a current value of a little over $15 million, Marathon has mined close to 94 million KAS thus far.
#Kaspa has clearly broken through the 18 cent barrier and is heading for 19 cents!
After that we can expect a new all-time high for $KAS!#crypto #pow $BTC pic.twitter.com/ruNt9kfeoL
— KASPA Enthusiast 𐤊 (@KASPAEnthusiast) June 27, 2024
Unlike Bitcoin’s 10-minute block processing time, Kaspa leverages a BlockDAG (Directed Acyclic Graph) architecture, enabling it to churn out multiple blocks simultaneously. This translates to faster transaction processing, a potential game-changer in the ever-evolving world of digital payments.
Marathon Digital’s decision to embrace Kaspa mining wasn’t solely driven by technological innovation. The company clearly sees an opportunity for increased profitability. Kaspa currently offers miners the potential for higher block rewards compared to Bitcoin.
Additionally, Marathon secured a significant amount of specialized Kaspa mining hardware (ASICs) last year, estimated to generate profit margins as high as 90% under optimal conditions.
Adam Swick, Marathon’s Chief Growth Officer, emphasized the strategic importance of this move:
“By mining Kaspa, we’re establishing a revenue stream separate from Bitcoin, one that directly aligns with our expertise in digital asset computing.”
Swick added that the organization’s existing infrastructure, strong relationships with hardware manufacturers, and a robust financial reserve positions them “perfectly to mine Kaspa and capitalize on the high margins it offers.”
Is This The Dawn Of A New Era For Kaspa?
The news of a Bitcoin giant entering the Kaspa arena has undoubtedly bolstered investor confidence in the cryptocurrency. The price surge reflects this newfound optimism, with Kaspa inching closer to its all-time high.
However, the cryptocurrency market remains notoriously volatile. While Kaspa’s technological edge and potential for profitability are undeniable, its future trajectory hinges on various factors, including wider adoption, developer activity, and overall market sentiment.
KAS Price Action
With a market size of $4.3 billion as of the time of publication, the price of Kaspa was trading at $0.1799, placing it in the top 25 cryptocurrencies. Additionally, Kaspa’s daily trade volume has increased by over 130% to $140 million. The altcoin is currently trading near its all-time highs and may be about to reach a price discovery.
Featured image from LiveAbout, chart from TradingView
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