Klaytn (KLAY) Scores 30% Gains In The Last Week

Klaytn is an open-source, metaverse-focused cryptocurrency that has experienced impressive gains over the last week. Seven days ago, the cryptocurrency was trading at $0.21. The crypto also struggled a lot during the week, before picking up momentum on Wednesday. It has maintained a steady upward trend, with an impressive 30.80% gain since that time.

The recent Klaytn pump is one of many catalysts. This includes the current crypto market rally. The Klaytn team made several bullish moves throughout the week. These included its proposal to cut block rewards and token buybacks.

However, the token’s price doesn’t look pretty in its 24-hour charts. However, the token’s price is up 30% in the last week. This is still a significant growth.

Klaytn Loses 5% on Day One

Klaytn was part of the bullish market this week and held over 30%. However, it hasn’t faired well today as it suffers a 5.13% loss. It is trading below $0.281 at press time and at $0.262 today. Klaytn’s 24-hour trading volume has also reduced drastically. A decline of 31.91% has been recorded in KLAY’s value, which is only $125,517.796.

While KLAY still enjoys an impressive weekly gain, it’s most likely that the token has entered an overbought zone. The price of KLAY will rise, but it may not sustain the current level. Therefore, today’s drop could be a sign of a bearish reversal.

Klaytn currently ranks as the 58th most valuable cryptocurrency according to market capital. The circulating supply of the cryptocurrency is 3.09 million tokens. The token’s market cap is $810,351,883, a 5.7% drop from its value yesterday. However, it ended the October month with good gains. It may have more upside.TradingView.com has the KLAYUSD price chart

KLAY’s price is currently trading around $0.25. | KLAYUSD price chart from TradingView.com

Block-Reward and Buyback Cuts Cause KLAY To Soar

Six days ago, the Klaytn price spike began when the project approved a proposal that would reduce its block reward by 1/3rd. This proposed change would reduce the block reward from 9.6 KLAY up to 6.4KLAY. A new system would also be used to allocate newly created tokens. It goes for 50% to the GC and 40% to Klaytn Growth Fund. 10% is allocated to Klaytn Improvement Reserve.

Developers at Klaytn stated that the proposal’s goal was to “address the volatility currently experienced in the macro markets.” According to the Team:

“As a result of the negative situation in the global economy and the crypto market and the increased circulation of KLAY in the Klaytn ecosystem, KLAY price is experiencing a dramatic decrease. We need to respond to the situation by adjusting the amount of minted KLAY.”

The Klaytn Foundation’s token buyback also helped KLAY perform well. October 21st, a blog post reported an abnormal fluctuation in the token’s on-chain liquidity, prompting a repurchase to stabilize the ecosystem. The team revealed that Klaytn’s foundation stablecoin reserves would cover the buyback. However, Klaytn Foundation didn’t disclose the number of tokens it will buy or its spending.

Featured image by Pixabay, chart by TradingView.com

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