KNC price prediction: What is kyber network crystal?

KNC is a buzz token at the moment, but what is the KNC price prediction looking like?

Contents

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 coin 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 (CTO) of Clixy and 24/7 Digital Group – and Yaron Velner, CEO of B.Protocol. The organisation is based in Singapore and employs about 50 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, but 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 have 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.

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 automatically execute 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.

So that’s the Kyber Network explained. But what is a 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 6 October 2021, there were 174,329,616 in circulation. That is a drop of a less than a third over the course of a little more than four years.

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 chart
KNC price chart – Credit: Currency.com


KNC price history

First, we should point out that KNC underwent a token migration in 2021, which it announced on Twitter. That 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, 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, the highs were not going to last and, despite a rally to $2.3073 – the highest price KNC has seen since 19 May’s events.

Since early September, the overall direction of travel for KNC has been downward, with the crypto currently trading at about $1.63 at time of writing on 6 October. But what about the future?

Let’s take a look and see what kinds of KNC coin price predictions other people are making.

KNC price predictions

The Kyber Network price prediction from WalletInvestor is optimistic, saying the KNC coin will reach about $3.87 in a year and $9.20 in five years’ time.

Meanwhile, DigitalCoinPrice’s KNC price prediction for 2021 sees it hit $3.01 at the end of the year. The same site predicts that the coin should reach $3.08 in October 2022 and get to $4.09 a year after that.

In the medium to long term, the price should remain stable, it says, sitting at $5.73 in October 2024 before rising to $5.84 a year after, then hitting $7.22 in October 2026. In October 2027, KNC should fall down to $5.78 before rising to $8.93 12 months later. 

Finally, gov.capital’s KNC price prediction is that the token will close 2021 at around $1.67. In October 2022, it suggests that the KNC price should stand somewhere in the region of $1.75.

FAQs

As of 6 October 2021, there were 174,329,616 KNC coins in circulation.

Probably. The network does not store any data or funds, which means that risk is reduced considerably. As with all things, though, you will need to do your own research.

Potentially. The long-term forecasts are positive, although long-term forecasts are very often wrong.

If you are thinking of investing in KNC, remember that crypto prices can be very volatile and that they can go down as well as up. Never invest more than you can afford to lose. 

We don’t know. A Kyber Network coin price prediction from DigitalCoinPrice thinks that it can reach $9.54 by the end of 2028. However, it is entirely possible the price could be much lower than that, and it is quite usual for predictions to be wrong.

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with crypto or fiat
iMac Image