The announcement of the SEC’s (Securities and Exchange Commission) investigation into Binance has caused thousands of cryptocurrencies to crash severely and all at once. While the total market capitalization of all cryptocurrencies has decreased by 3.66% to $1.09 trillion, certain altcoins, such as KAVA, are displaying a startling bullish resilience and are defying the general market bearishness.
At the time of writing, KAVA has maintained growth of 9.65% over the last 24 hours, a pattern that has helped it recoup the steep declines it had over the previous seven days.
As a point of comparison, over the past 24 hours, Bitcoin has fallen by more than 6%, and the growth rates of several of the digital currencies named in the indictment have also been drastically discounted. Given that the protocol has not made any distinctive announcements that may influence sentiment, it is difficult to understand why KAVA has grown so quickly.
The power of the KAVA communities is demonstrated by this. The realisation that the token had survived being classified as a token by the SEC may have piqued the curiosity of current HOLDers and potential investors.
The decline in the cryptocurrency market shows that investors are unwilling to buy into the uncertainty surrounding these tokens, which feeds enthusiasm for cost-free digital assets like KAVA.
Does KAVA have worthy fundamentals?
Although it is still true that KAVA has no obvious upcoming development updates, the coin has been on many people’s radars as one of the most forward-thinking cryptocurrency projects available.
The system is marketed as a Layer 1 blockchain that combines the developer power of Ethereum with the speed and interoperability of Cosmos, however its fundamentals cannot be regarded good enough to support sustained positive price movement in the short term.
Since KAVA has had a string of price increases since the beginning of the year, the lack of a strong fundamental supporting it has fostered the hypothesis that its future rise would be dependent on chance.
