Kaspa, a proof-of-work (PoW) altcoin, has emerged as one of the top performers in the cryptocurrency market, recording significant gains over the past 24 hours. As of January 14, Kaspa’s market capitalization surpassed $3.43 billion, while its trading volume surged by more than 14% to exceed $143 million.
The altcoin’s surge coincided with Bitcoin‘s recovery, which climbed back above $96,000 after dipping to $90,000 earlier. Kaspa was one of the top altcoin gainers, ranking alongside ai16z and Fartcoin, with other notable coins such as Lido DAO and IOTA also seeing impressive gains of over 15%.
Kaspa’s increasing popularity is partly driven by its integration into Marathon Digital’s mining operations. This partnership, which began in June 2024, marked a turning point for Kaspa, pushing the coin to an all-time high of $0.2074 on August 1, 2024. Currently, Kaspa holds the position of the seventh-largest mineable coin, trailing behind Bitcoin, Dogecoin, Bitcoin Cash, Litecoin, Ethereum Classic, and privacy-focused Monero.
Kaspa’s consensus mechanism is based on PoW, similar to Bitcoin, but it uses a BlockDAG (Directed Acyclic Graph) algorithm that allows for simultaneous block production. This contrasts with Bitcoin’s linear block production, where a new block is generated approximately every ten minutes.
Despite recent volatility in the crypto market, Kaspa has seen a 17% increase over the past week, although it has experienced a 13% decline over the past 30 days, remaining more than 35% below its all-time high.
Currently, Kaspa is testing a key resistance level above $0.13. Technical indicators, including the Relative Strength Index (RSI) at 60 and a bullish crossover in the Moving Average Convergence Divergence (MACD), suggest that the momentum may be shifting in favor of the bulls.
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