Up 75% since January, Kyber Network to Implement Protocol Upgrade and Token Staking Mechanism this Year

Since January, Kyber Network (KNC) has grown by nearly 75%. With this year's token staking mechanism set to be implemented, various data indicate that Kyber may continue its bullish trend and further expand its market share in decentralized exchanges.

• Adjusting ecosystem incentive measures, introducing token collateral mechanism
• On-chain data and liquidity continue to grow

Decentralized Exchanges (DEX)

Mainstream exchanges typically offer excellent liquidity, trading depth, and efficient customer service, meeting the needs of high-frequency traders. However, the centralized custody model of traditional banks is often criticized.

The emergence of Decentralized Finance (DeFi) has brought about non-custodial trading and various lending services. Unlike centralized exchanges, DEX eliminates intermediaries and completes transactions without the need to hold user assets.

Kyber Network is an Ethereum-based decentralized exchange project. Although its trading volume is still smaller than its main competitor Uniswap, Kyber has shown outstanding performance in terms of price and on-chain data in recent weeks.

Cryptocurrency data firm Santiment Insights has studied key data to interpret the recent price increase of Kyber Network (KNC).

Recent On-Chain Data of Kyber Network

As shown in the figure below, the number of daily active addresses has surged since December, and Santiment has noticed a strong correlation between this indicator and the price. Whenever KNC rises, there is a significant increase in active addresses.

The theory provided by Santiment is that as the price rises, more speculators engage in short-term trading. When on-chain activity starts to slow down, the price momentum is usually unsustainable, leading to a slight pullback.

In addition to the surge in on-chain activity, there is also high community engagement. According to Santiment, social media mentions of Kyber and KNC have been the highest since December last year.

According to Kyber's Blog announcement of the 2020 outlook, liquidity will be enhanced through the "Katalyst" protocol upgrade, introducing a token collateral mechanism, and launching the community platform KyberDAO. KNC holders will participate in governance for the first time, indicating that if the Kyber collateral mechanism operates smoothly, the price of KNC tokens may further rise.

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