3 Reasons Why Kaspa (KAS) Price Is Flat Following the Crescendo Update

Kaspa's long-awaited Crescendo update officially went live yesterday. It's a big technical milestone that boosts the network speed from 1 block per second to 10 blocks per second.

The long-awaited Crescendo update for Kaspa (KAS) went live yesterday, marking a significant technical milestone for the cryptocurrency. The update, which was originally announced back in March, increases the network speed from 1 block per second to 10 blocks per second, a critical step towards enabling greater scalability and throughput.

However, despite the hype surrounding the update and the potential it holds for the future of Kaspa, the price of KAS seems to be unfazed. As the dust settles on the technical upgrade, the market is still digesting the implications, and the true impact on the coin’s value remains to be seen.

The news was already priced in

The price of KAS experienced a substantial rally in the leadup to the Crescendo update. After dropping to lows of around $0.57 in March, the coin experienced a strong rebound, bouncing back to highs of over $0.10.

This rally was fueled by anticipation for the upcoming update, with traders and investors buying into the narrative early on. However, with the actualization of the event, it appears that much of the excitement had already been priced into the market.

As the update went live, the initial enthusiasm had waned, and traders, having realized their gains, began to exit their positions. This classic scenario of “buy the rumor, sell the news” played out in the market, ultimately leading to a flat price trajectory for Kaspa despite the technical milestone.

The market is pretty dull right now

While Kaspa is undergoing transformations on the technological front, the broader cryptocurrency market seems to be experiencing a period of stagnation. Bitcoin is trading sideways, altcoins are mostly in the red or confined to tight ranges, and the overall mood is dampened by a lack of hype.

In such a flat market scenario, it’s difficult for any single coin to stand out and capture the limelight, no matter how strong its fundamentals.

Generally, traders follow the overall market sentiment, and right now, there isn’t a lot of energy in the crypto space, which might be holding Kaspa back from experiencing a price breakout.

The upgrades don’t mean instant price gains

The introduction of a new technical upgrade doesn’t necessarily translate to an immediate price surge. Sometimes, it takes time for those improvements to be fully recognized and appreciated by the broader market.

We’ve seen this happen before with other cryptocurrencies. For example, Ethereum’s Shanghai upgrade, a highly anticipated event, didn’t lead to a massive price move overnight. Similarly, Cardano experienced major updates in the past, with price reactions that were either delayed or muted.

The Crescendo update is a significant development for Kaspa in the long term. It improves scalability, reduces network congestion, and opens the door for more advanced use cases down the line. However, in the short term, these changes might not have an immediate impact on the coin’s price action.

In the final analysis, Kaspa is quietly building and making real progress with its technology. While the price might not be reflecting it at the moment, the foundation is getting stronger. If the market wakes up and momentum returns, KAS could be one of the coins to benefit the most, especially now that its technology is ready for the next level.