Kyber Network: Multi-Chain Crypto Trading and Liquidity Hub

Kyber network acts as the hub of liquidity protocols and aggregates liquidity from multiple sources.
Blockchain network
Blockchain network
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The current strata of DeFi platforms and dApps face some liquidity issues. This is because DeFi infrastructure, though revolutionary, is still in its nascency and lacks a mechanism to prevent the liquidity present within a platform’s ecosystem from flowing elsewhere. A majority of these dApps also have no access to liquidity pools outside the ecosystem. This drawback makes systems vulnerable to slow transaction speeds and security issues. Today we look at a solution: Kyber Network, which is built to solve this liquidity issue in DeFi.

Kyber Network: Introduction

Kyber network acts as the hub of liquidity protocols and aggregates liquidity from multiple sources to provide secure and instant transactions on any dApp. Its main objective is to provide dApps, DEXs, and other users easy access to liquidity pools that give the best rates. Kyber Network has built three tools to achieve its goal: 1) A protocol for decentralized exchange 2) An API (Application Programming Interface) for asset conversion and 3) KNC cryptocurrency. Kyber network is built over the Ethereum blockchain.

KNC Token: Fundamentals and Purpose

KNC or Kyber Network Crystal connects different stakeholders in the Kyber ecosystem. It is the native cum governance token of the KyberDAO. KNC holders stake and vote to receive trading fees from the network. As more trades happen and protocols are added to the platform, more rewards are generated. KNC can be upgraded, minted, or burned by KyberDAO to add to liquidity and growth. More than 177 million KNC tokens are in circulation today.         

Short-Term Technical Analysis

KNC token is priced at $1.78 today, a decline of 4% in the last 24 hours, and is currently ranked among top 200 cryptocurrencies by market cap. KNC had a bullish start to February but has now is in a descending parallel channel, giving several opportunities to scalp traders. It hit a high of $2.17 this month before rejecting hard and losing the golden pocket of its rise.

Source: TradingView, Binance

KNC now trades at the .786 retracement support level, back inside the parallel channel. If this support is lost, it may visit its monthly pivot at $1.69. Should bullishness resume, it will need to reclaim the golden pocket that has now turned to resistance, at $1.81 and $1.84.

Future Potential

DeFi has immense utilities and use cases. As such, no standalone protocol has the potential to serve the needs of all kinds of liquidity providers. Kyber Network’s architecture is built to sustain DeFi and its possibilities in the future. The network launched Kyber DMM, the world’s first dynamic market maker protocol, in April 2021. As DeFi’s possibilities expand further, Kyber’s DMM is designed to react to market conditions and will help in optimizing fees and enable high capital efficiency for liquidity providers. The use cases are promising. Can KNC be a top 100 crypto soon?

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Disclaimer:This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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