Kaspa Analyst Breaks Silence on KAS 50% Crash– Here’s What Comes Next
Kaspa rate has continued to dip. Now around 50% down since the May high. Is KAS in trouble? That’s the big question many holders are asking as the coin continues to bleed in spite of the bullish sentiment surrounding its technology and community. In a new video on the What Is Crypto? YouTube channel, expert Matt offers his honest take on where Kaspa stands today, why he still believes in the project, and what might finally push him to cut his position. He blends genuine optimism about the tech with some hard truths about the chart and he’s not sugarcoating anything.
What you’ll discover?
- Bitcoin’s Unpredictability Adds Pressure to Altcoins
- Kaspa Price Is Struggling– And Matt Knows It
- Why Matt Still Believes in Kaspa
- Environment Development and Smart Contract Potential
- Final Thoughts on the KAS Price Outlook
Before diving into Kaspa, Matt looks at the broader crypto market. Bitcoin has been stuck in a choppy range between $101K and $110K. Although it’s been forming higher lows, the lower highs are preventing any real breakout. That indecision is making it tough for altcoins like Kaspa to gain momentum. Matt also discusses global tension and war fears, which he says often cause markets to get oversold. He points out that during the panic earlier in August, prices dumped, only to bounce sharply later. So while the war narrative adds fear, it may actually be a setup for a turnaround if the pattern repeats. He also highlights a few key indicators he’s monitoring, including Ethereum’s performance against Bitcoin, Bitcoin dominance, the US dollar index, and the stock market. ETH/BTC needs to rise to initiate an altcoin season, and a decrease in Bitcoin dominance would help too. The US stock market is performing well, and a weakening dollar could be good for risk assets like crypto.
Kaspa Price Is Struggling– And Matt Knows It
When it comes to Kaspa, Matt doesn’t hide how rough the chart looks. The KAS price has been stuck in a long range since late 2023. It fell out of that range, recovered a bit, but recently dipped below it again. Unless the current dip forms a new higher low, Matt says, we might be looking at a continued downtrend. To break that pattern, he wants to see KAS bottom above the last low and climb past $0.13. But if the Kaspa price drops below $0.05, Matt admits he may need to reconsider holding. As much as he loves the project, he’s realistic: if it keeps bleeding, he may sell. Not because he lost faith in the tech, but because there’s still money to be made elsewhere.
Why Matt Still Believes in Kaspa
Despite the chart, Matt is still strongly bullish on Kaspa because of what it represents. Kaspa is a proof-of-work project designed to be a faster, more scalable version of Bitcoin. It already processes 10 blocks per second, making it 6,000 times faster than Bitcoin. A future upgrade could take it to 100 blocks per second, making it 60,000 times faster. He sees this speed as a real reason Kaspa could succeed as a crypto payment solution. He mentions the upcoming Kaspa Experience event in Berlin, where vendors will only accept KAS for payments. That’s real-world utility, not just hype.
There’s also significant development on Kaspa Matt highlights Kazai Messaging, a peer-to-peer encrypted messaging app built on the Kaspa chain by a developer named Oz Ghosty. It’s open source, fast, and very cheap to use. Sending messages via the Kaspa blockchain costs almost nothing– just a few KAS for thousands of messages.
Environment Development and Smart Contract Potential
Another major development is the work being done by Igra Labs. They’re building a layer that will make Kaspa compatible with the Ethereum Virtual Machine. That means Ethereum smart contracts and tools will be able to run on Kaspa. It’s a big deal because it allows developers to leverage Ethereum’s ecosystem while benefiting from Kaspa’s fast, secure architecture. Matt says this EVM-compatible layer should launch around mid-July. He encourages viewers to check out the Igra Labs team, who bring a ton of blockchain experience. Their goal is to merge the best parts of Bitcoin-style security with the flexibility of modern chains like Ethereum. If they succeed, it could make Kaspa one of the most user-friendly and powerful Layer ones out there.
Final Thoughts on the KAS Price Outlook
Even with all this bullish development, Matt admits that the Kaspa price hasn’t reflected any of it. Part of the issue, he says, is the rapid token emission schedule. Kaspa released coins at a fast pace early on, which didn’t allow the same kind of slow, decentralized distribution that Bitcoin had. That created heavy selling pressure that still lingers today. Still, Matt believes the long-term vision is strong. He’s not blind to what the chart is saying. He’s sticking around if KAS price holds above the current level and starts forming higher highs. If it drops below $0.05, he’s going to think hard about exiting– even though he’s still a fan of the project.
His message to viewers: always do what’s right for your own situation. Whether you’re bullish, bearish, or just observing, this isn’t a one-size-fits-all scenario. Whatever happens next, Kaspa is definitely a project worth keeping an eye on. Sign up for our YouTube channel for daily crypto updates, market insights, and expert analysis.
