Analyst âđđŤđ¨đŹđđĽđ˛đđâ posted an interesting Kaspa chart today on X, formerly Twitter. He actually compared KAS growth with early Bitcoin days.
Rapid Growth and Stabilization
The chart showcases Kaspaâs Power Law R-squared (R²) value over time, which measures how closely the the Kaspa price action follows a predictable trend based on a mathematical model. This model is likely tied to the power-law distribution often observed in financial markets.
Initially, Kaspaâs R² value was highly volatile, with significant dips during the first few months. This early phase, characterized by instability, saw the R² fluctuating between low values and occasionally approaching zero. However, around late 2022 to early 2023, a notable shift occurred as the R² began to stabilize and show a consistent upward trend.
The most striking aspect of the chart is the rapid increase in R² values from mid-2023 onwards. By late 2024, the R² reaches a level above 0.95, indicating that Kaspaâs price action has become highly predictable over a relatively short period.
Read also: Where Is The Bitcoin Price Headed Next? Analyst Predicts $68k per BTC âNext Weekâ
Technological Advantages Driving Growth
Analyst attributes Kaspaâs accelerated growth and stabilization to several key factors:
- Faster block times
- More efficient network
- BlockDAG structure
These innovations could be enabling Kaspa to gain maturity more quickly by reducing inefficiencies in its consensus mechanism. As a result, Kaspaâs price appears to be following a more predictable trajectory, as evidenced by the high R² values towards the end of the chart.
The âBitcoin on Steroidsâ Comparison
The analystâs description of Kaspa as âBitcoin on steroidsâ stems from the observation that KAS is following a similar trajectory to Bitcoinâs early growth, but at a much faster pace. While Bitcoinâs early volatility took years to stabilize, Kaspaâs chart suggests itâs achieving similar stability in a fraction of the time.
This rapid stabilization is reflected in the chartâs color gradient, which transitions from red and orange (indicating low R² values) to dark green (signifying high R² values) over a span of about two years. Such a quick transition from high volatility to high predictability is unusual in the cryptocurrency space and suggests that Kaspa may be maturing at an unprecedented rate.
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