KNC price prediction: Boom and bust for Kyber Network Crystal?
KNC has had a buzz about it recently, but what does the KNC price prediction look like?
- What is Kyber Network?
- From the KNC whitepaper
- Using the Kyber Network: reserves
- What is KNC coin?
- KNC price history
- KNC price predictions
Kyber Network Crystal (KNC) is a crypto token that helps power a form of cryptocurrency exchange that does not rely on a company to set the rates.
The Kyber Network on which it runs is all about decentralisation, and KNC has its fair share of followers. But what about the future of the network? And what does a KNC price prediction look like?
Before we discuss these questions, let’s first take a look at the network and the token, and find out what they do.
What is Kyber Network?
The Kyber Network was set up in 2017 by its co-founder and CEO Loi Luu, a blockchain researcher and co-founder of SmartPool, together with back-end engineer Victor Tran – the former chief technology officer of Clixy and 24/7 Digital Group – and Yaron Velner, CEO of B.Protocol. The organisation is based in Singapore and employs about 60 people.
In 2017, the network organised an initial coin offering (ICO), which succeeded in raising $52m – substantially more than the aimed-for $46m. Although there was initially a lot of interest, the network did not go live on the Ethereum blockchain straight away, instead waiting until February 2018 to start up on Ethereum.
The Kyber Network is a protocol that runs on the Ethereum blockchain and supports a decentralised crypto exchange called KyberSwap. KyberSwap works like a normal crypto exchange would, but with one important difference: rather than having a standardised rate of exchange or an order book, the rates of exchange are built into the system’s protocol itself.
This means that customers on the exchange only pay fees in ether (ETH) and the transactions are settled on the blockchain. The exchange is not controlled by a company, but uses code to help carry out transactions.
There are three different parts of the Kyber Network that help create and run KyberSwap. These are: smart contracts, which allow the tokens to be traded and exchanged; takers, who remove liquidity from the network and carry out trades; and reserves, which give the network its liquidity.
From the KNC whitepaper
Kyber Network’s 25-page whitepaper states: “Kyber Core smart contracts is an implementation of the protocol that has major protocol functions to allow actors to join and interact with the network.”
It adds: “KNC is to be used as part of the transaction to facilitate ongoing system operations. For example, getting reserves to pay a fee in KNC for every trade acts as a barrier for them to perform wash trading. This fee can be incorporated into their spread. In addition, users who need instant liquidity can pay the fees in order to get the trade facilitated.”
It also states: “As the scope of Kyber expands, there are several possible mechanisms to leverage KNC as a staking mechanism, to act as a barrier for malicious actors and safeguard the integrity of the Kyber ecosystem. For example, as a requirement for reserves to stake KNC to be considered part of the network, or as a requirement for relayers and validators to facilitate cross-chain transactions between Kyber-based networks on different chains.”
Using the Kyber Network: reserves
The reserves themselves can be split into three parts.
First, there are the price-feed reserves. These, in effect, make the markets. These reserves work out exchange rates using price feeds and then use smart contracts – computer programs that execute automatically when certain conditions are met – to store the price. The price-feed reserves then send takers to the smart contracts in order to carry out trades.
Second, there are the automated price reserves. These bring liquidity to the protocol by using smart contracts to set up exchange rates for tokens.
Third, there are the bridge reserves. These reserves add to the liquidity that the automated price reserves bring, by effectively linking up with other decentralised crypto exchanges.
We’ve answered the question ‘How to use Kyber Network’, so that’s the Kyber Network explained. But what is KNC coin? And can we make a Kyber Network (KNC) price prediction?
What is KNC coin?
The Kyber Network Crystal (KNC) coin is used to help carry out actions on the protocol that are not directly to do with the decentralised exchange itself.
For instance, if someone holds KNC coin, they can stake it to vote on network upgrades and any changes to the protocol itself. KNC users can also delegate their voting rights, which are based on how many KNC they hold, in exchange for rewards.
These rewards are paid in ETH rather than KNC. In fact, you do not need to hold KNC to carry out transactions on the exchange, which is somewhat different from a lot of protocols and decentralised exchanges.
Another wrinkle in the system is that the amount of Kyber Network Crystal that is used for fees is burned over time. This means that the supply is reduced – which should, in theory, keep the KNC price high.
When the Kyber Network was first launched with an ICO in 2017, there were about 226 million KNC in circulation. As of 11 August 2022, there were 177,809,349.53 coins in circulation, representing a 21% decrease from the original amount.
Now let’s take a look at what the Kyber Network Crystal price has done since it started being traded publicly. While past performance is no indicator of future results, it is useful to have some Kyber Network price context for a KNC coin price prediction.
KNC price history
First, we should point out that KNC underwent a token migration in 2021, which it announced on Twitter. This means that, while the coin did the same thing, in effect it was a different token. Therefore, any price history before the swap is not really relevant. The other thing to note is that the swap started on 20 April and took a little bit of time to kick in.
After the ‘new’ KNC came into being, the great crypto day crash of 19 May was the first important thing to happen to the markets. On this day, KNC lost nearly a third of its value – it opened at $2.7552 and closed at $1.8663. The Kyber Network price then stayed around the $2 mark for most of the summer, with a closing low of $1.2065 on 25 June being a particular nadir.
The markets recovered slowly from the losses suffered on 19 May, with the $2 barrier broken by KNC on 21 August 2021 as the coin reached an intraday high of $2.0367. The value of KNC slowly went up, and it reached $2.2658 on 24 August. However, despite a rally to $2.3073 – the highest price KNC had seen at that point since the events of 19 May – the highs were not to last.
Since early September 2021, the overall direction of travel for KNC had been downward, with the crypto trading at about $1.50 in October. There was a brief spike in late November at $1.93, but it continued down to $1.26 by 21 December 2021.
However, the New Year brought more activity. KNC bucked a market-wide downtrend with an almost 60% gain over the course of January 2022, and on 1 February it opened at $1.89. This month was a very positive one for the coin and not even market turmoil triggered by Russia’s invasion of Ukraine could stop it from growing, closing the month at $2.41.
An upbeat market, coupled with the news that KyberSwap had reached $6bn in trading value, meant that, on 3 March 2022, the Kyber Network price stood at around $2.75, more than double the $1.29 it was worth at the end of 2021. March saw the coin make steady progress upwards, closing the month at $3.25.
While it dropped to stand at around $3.15 on 1 April 2022, that still represented an increase of nearly 145% from its annual starting price of $1.29. That was good going by any measure, but it was made all the more impressive by the fact that the crypto market as a whole had shrunk by around 6% from where it had been at the start of 2021.
Then came KNC’s new all-time high of $4.80 on 14 April 2022. This followed a rally for KNC after integrating with Uniswap v3 and Avalanche Rush Phase 2. Things kept looking up for the crypto, and on 28 April 2022 it hit a fresh all-time high of $5.72.
Since then, though, the price of KNC has collapsed, as the bears evidently considered it over-valued, and by 6 May 2022 it had lost half its value in the space of a week, to stand at $2.84.
Things continued to get worse and, on 12 May, it dropped to a low of $1.13 as the market went through the turmoil caused by the depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency. After that, KNC recovered somewhat, and on 30 May it reached a high of $2.30. Since then, though, it has been on the slide, and on 7 June it closed at $1.90. After that, there was more decline and it reached a low of $1.12 on 14 June. After that, though, there was a recovery of sorts. On 23 June, it was worth $1.34. Since then, the price has ultimately risen, despite the news that part of its treasury was held in the soon-to-be liquidated Three Arrows Capital and, on 18 July, it was worth about $1.44. In the few weeks after that, though, there was further recovery and, on 11 August 2022 the token was worth around $1.70.
So what about the future? Let’s take a look around and see what kind of KNC coin price predictions other people are making.
KNC price predictions
The Kyber Network price prediction from WalletInvestor is somewhat optimistic, saying the KNC coin will rise to just under $1.93 in a year’s time and trade at a little below $3.27 in July 2027.
Meanwhile, DigitalCoinPrice’s Kyber Network price prediction for 2022 sees it hit an average of $2.21 this year. The same site predicts that the coin should reach $2.43 in 2023, before dipping to $2.33 in 2024 and then bouncing back to hit $3.22 in 2025. KNC will drop down to $2.94 in 2026 before recovering to $3.70 in 2027.
By 2028, it should be trading at around $5.48 before closing the decade at $6.89. The site’s Kyber Network price prediction for 2030 is an upbeat $7.67. In 2031, KNC coin should be trading at an average of around $8.81.
Finally, Gov Capital’s KNC price prediction suggests the KNC price should stand at $1.70 at the end of this year before it grows to $2.81 on 11 August 2023. A year from then, it should have risen to $8.91.
The site’s Kyber Network price prediction for 2025 sees it open the year at a little under $13.23 before it rises to $15.60 on 11 August. There will be more growth and it should close the year at $20.85. By 11 August 2026, it will have grown to just under $23.39 and a year from then it should be worth $32.45.
How many KNC coins are there?
On 11 August 2022, there were 177,809,349.53 KNC coins in circulation.
Is Kyber Network safe?
Probably. The network does not store any data or funds, which means that risk is reduced considerably.
As with all things crypto, however, you will need to do your own research, and be sure not to invest any money you can’t afford to lose.
Is Kyber Network Crystal a good investment?
Potentially. While the forecasts are mostly optimistic, you should remember that long-term forecasts often turn out to be wrong, so it is important to do your own due diligence before considering making any investments.
If you are thinking of investing in KNC, remember that crypto prices can be very volatile and can go down as well as up. Never invest more than you can afford to lose.
How high can Kyber Network go?
We don’t know. A Kyber Network coin price prediction from DigitalCoinPrice thinks that the maximum price it can reach is $7.44 in 2031.
However, it is quite common for predictions to be wrong, so it is also possible that the price could be much lower than that.