Kaspa's Price Drops 15% Amid Inflation Concerns and Low Adoption

Kaspa's price has plummeted by 15% this week, falling below the critical $0.080 support level and now trading around $0.075. This decline has raised concerns within the community, which is typically optimistic and enthusiastic about technical developments. Several alarming trends are emerging, particularly related to tokenomics, inflation, and widespread adoption.

One of the most pressing issues is Kaspa’s tokenomics and inflation. The network rapidly issues new tokens due to fast block times and ongoing block rewards, resulting in a constant influx of new KAS. Critics fear that if demand does not keep pace with this supply, the steady increase in tokens could drive prices down. Additionally, the reward structure seems to favor miners in the short term, potentially leaving long-term holders at a disadvantage.

Another significant concern is the lack of widespread adoption. Despite Kaspa’s advanced technologies, such as its DAG structure and near-instant transaction finality, it has not gained traction in areas like DeFi, NFTs, or business integration. While the project has attracted developers, growth has not accelerated, and the ecosystem lacks the vibrant activity that typically signals long-term potential.

Liquidity problems are also a major concern. Kaspa often suffers from low trading volume and price volatility, even on larger exchanges. Weak liquidity not only deters institutional buyers but also makes it easier for prices to fluctuate wildly. This issue is compounded by the fact that Kaspa is not yet listed on Tier-1 exchanges, keeping it off the radar of many serious traders.

The competitive landscape and technical risks add to the challenges. Kaspa’s DAG-based system competes directly with established blockchains and other DAG platforms. While it claims security and speed advantages, some analysts remain cautious. The protocol is still relatively new and could face vulnerabilities under pressure or attack, which might shake investor confidence.

Governance and centralization concerns further complicate the situation. Although the code is open-source, a small core team drives most of the development. This concentration of power worries some stakeholders, especially since there is no on-chain voting system for community input. Without transparent, decentralized decision-making, broader stakeholders may feel left out or underrepresented.

When these issues are combined with the recent breakdown of key price levels, a bearish outlook becomes evident. The loss of support at $0.080 and the slide to $0.075 suggest further weakness ahead. If the $0.071 level fails next, prices could dip to around $0.055–$0.058, indicating a further 23–28% decline. If that level is breached, a drop to $0.043 becomes increasingly plausible, marking a total 40% fall from current levels.

On daily charts, Kaspa sits well below all major moving averages, including the 50-day and 200-day averages, which are all “sell” indicators. Oscillator signals also confirm weakness: the RSI is stuck in the low-30s, the ADX is trending down, and the MACD remains negative, all pointing to bearish momentum.

In summary, Kaspa’s current position appears fragile. High inflation, slow adoption, weak liquidity, structural challenges, and centralized governance are all contributing to downside pressure. Unless these core issues are addressed soon, the potential for a 40% correction is not just a theoretical risk but a realistically possible outcome given the current setup.