Kava Crypto project is of great potential and can transform the DeFi space. But can the project compete with the big boys in Web3?

There is no shortage of DeFi protocols that offer users decentralized collateralized loans. Still, regarding user experience and trust, only a few protocols stand out, including Kava. 

## Kava crypto project recap 

As a protocol seeking to become the de facto DeFi platform in Web3, the Kava crypto project offers its users CDP or collateralized debt positions. This allows users to borrow against their collateral which can be in one or more coins (up to four). Collateral can be in BTC, ATOM, BNB, or XRP. This is where Kava stands out, as it makes it easier for users to take out loans.

## How does lending work on Kava? 

Since Kava is built on the [Cosmos](/news/article/cosmos-crypto-explained) blockchain, users lock their cryptocurrencies on smart contracts deployed on Cosmos. Users can then borrow against their locked assets in the form of USDX. This is the stablecoin of the platform, which is pegged to the USD. Of course, all loans are over-collateralized due to the volatile nature of the crypto market.

If users want to earn interest on their assets, AKA lend them to others, they can do so and earn the interest in the shape of $Kava.

## You can use the platform to:

•	Borrow against your collateral and pay bills, buy things or re-invest that leveraged money (highly risky).

•	Earn interest on your stored assets.

This saves a lot of people from having to liquidate their sets when they need the cash urgently.

## Kava crypto: $KAVA 

The project relies on [Proof of Stake](/news/article/pos-vs-pow) as its consensus mechanism and $KAVA is the Kava crypto’s token. There are currently 320 million $KAVA circulating with no maximum supply. The token’s price is currently trading at the $1 mark (5th December 2022).

Initially a BEP-2 token, now it is living on the Cosmos Hub. [You can earn up to 38% staking $KAVA](https://www.stakingrewards.com/earn/kava/), depending on how many tokens you are staking. Delegation is available and can be done quickly via [Binance](https://www.binance.com/en), which has a validator node running for the Kava project.

## Current challenges 

Although the Kava crypto project completed [the ETH bridge launch](https://www.youtube.com/watch?v=yDQPsCr3RBg), it is yet to release the BNB chain bridge in Q4 of 2022. With the [latest developments in the market](/news/article/ftx-exchange-under-investigation), the project will face hardships in committing to its planned roadmap. So far, the project has successfully put checkmarks on almost all of its milestones, but will it survive through the current bloodbath?

Another concern is [USDX's](https://www.gate.io/blog_detail/1049/USDT--DEI---Kava-Network-Stablecoin-USDX--also-Suffer-Depeg-Amidst-UST-Blood-Bath) de peg last May which is still hurting the project as USDX never fully recovered its peg to the USD 1 to 1. 

Currently, USDX is trading at $0.88, almost 12% less than the USD's value.

The Kava crypto project holds some advantage over its competitors, especially when it comes to the [Tendermint](https://www.gemini.com/cryptopedia/cosmos-ignite-crypto-consensus-tendermint-ecosystem) consensus mechanism. 

However, the DeFi space is only getting more competitive by the day as more protocols deploy creative solutions to attract users. Will Kava’s focus on the long game and its partnerships with Binance and XRP save it from becoming the next victim of this bear market?


Kava Crypto: Does it Stand a Chance in 2023?

What is happening with the SOL to GBP price and what are the predictions for the future?

The SOL token is one of the most famous cryptocurrencies out there. This is due to [Solana’s](/news/tag/solana) scaling capabilities which allow the Solana network to process up to 75000 TP/s and compete with VISA.
 
## What is the SOL token?

The SOL token is the governance token of the Solana blockchain. The Solana blockchain is a hybrid PoH (proof-of-history) and PoS (proof-of-stake) blockchain consensus that allows for deploying smart contracts and processing transactions on-chain.

SOL is used in:

•	Staking and on-chain voting.
•	Payment of transaction fees of which a part is burned, and the other part is used as rewards for validators.

## SOL/GBP price history

Like other cryptocurrencies, SOL taken has taken a beating this year due to the bear market and the macroeconomic factors that have led to a lot of pain in the crypto market. The token has dropped by about 80% in the 2022 bear market.

Last year, SOL had a historic rally where its price increased from £1.11 on 1 January, 2021 to an all-time high of £192.06 on 7 November, 2021.

## SOL/GBP price analysis

The SOL token is having trouble recovering due to its many outages this year (five so far), including [one in October](https://fortune.com/crypto/2022/10/01/solana-back-online-after-latest-outage/). This enormously subdued the token's price below the £30 mark. The charts suggest that the SOL/GBP price has been ranging between the £24.28 support level and the £28.02 resistance level for over a week.

## SOL/GBP price forecast

In the mini relief rally over the last few days, the SOL/GBP price managed to test the £28 mark, but a rejection followed, and currently, the token is trading around the £26.51 mark.

A break in the SOL/GBP above £28 could encourage bulls to fight further and push the token back above the £30 resistance level. If it manages to maintain this level, the next test would be at the £33 resistance level, which broke due to the latest outage of October.

Solana labs is expected to release its first phone, Saga, in the first quarter of 2023. If all goes well, a rally could occur by pushing the token's price well above the £40 mark.




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Author: Mohamed Algaml

Author: Mohamed Algaml's Articles

Kava Crypto: Does it Stand a Chance in 2023?

SOL to GBP Analysis