Kaspa’s $3 Dream: What’s Fueling the ‘Next ETH’ Narrative After 32% Rally

Kaspa ($KAS), one of the few cryptocurrencies still operating on a Proof-of-Work (PoW) consensus mechanism like Bitcoin, is defying crypto trends with a fiery 32% surge, clawing back from Q1’s loss.

Despite a minor 2.6% dip in the past 24 hours, Kaspa has gained approximately 32% over the last two weeks. The uptick coincides with a marked increase in network activity, drawing fresh attention from its community.

According to CoinMarketCap’s Crypto Community Sentiment indicator, Kaspa ranks as the fourth most bullish cryptocurrency among the top 100, with over 93% of users expressing positive sentiment. This surpasses other well-known tokens such as Pi Coin, $XRP, and $ONDO.

After a relatively quiet period, Kaspa’s daily transaction volume sharply increased, reaching nearly 700,000 transactions in a single day.

This spike began shortly after the rollout of the Crescendo KIP-10 upgrade, which greatly improved the network’s performance by increasing block production from 1 to 10 blocks per second.

Just days before the surge, the network handled around 100,000 daily transactions. By May 6, that figure had climbed to 677,477, and it has sustained growth since.

Kaspa Sees Transaction Spike Following Crescendo Update

Kaspa network activity has surged significantly, with daily transactions nearing 700,000 following the recent Crescendo update.

The update, which enhances block processing efficiency and prepares the network for future… pic.twitter.com/rugVKVhZMx

The upgrade appears to have made the network faster and more efficient, contributing to broader user engagement.

Whale activity has also shown signs of stabilization. Since May 12, immediately after the Crescendo update, one wallet has accumulated 60 million $KAS tokens through consistent inflows from the KuCoin exchange.

This has prompted many crypto “HODLers” in the Kaspa community to believe that buying $KAS now is like buying Ethereum at $40 back in 2017, with anything under $3 per Kaspa seen as a bargain.

The team behind $KASPA is one of the most focused and capable in all of crypto. We’re talking PhDs, top-tier software engineers, even experts in quantum computing. It’s not just hype—this really is a once-in-a-generation project.

Kaspa isn’t just a win for early investors—it’s a… pic.twitter.com/1GnsDw1QaG

Meanwhile, the number of long-term holders continues to rise. Over the last three months, the number of addresses in the top 25% of $KAS holders has increased by around 6,000, reaching approximately 179,000.

Kaspa ($KAS/$USDT) is showing signs of a potential bullish reversal following a prolonged downtrend that began in late 2024.

The asset is currently trading at $0.1112 and is attempting to break through a key resistance zone formed by the Fibonacci fan levels.

A potential double bottom pattern is visible on the chart, formed by two rounded lows in March and April near $0.065.

After breaking above the neckline at around $0.085, the token has gained strength and is challenging multiple resistance levels. The Fibonacci fan lines, which had previously acted as dynamic resistance during the downtrend, are now being tested from above.

A decisive move beyond the grey and orange fans around the $0.115–$0.12 level could open the door for a further rally toward $0.14 and potentially $0.16 if the momentum continues.

Supporting the bullish outlook, the MACD indicator has crossed into positive territory. The MACD line (blue) is above the indicator line (orange), while the histogram prints green bars, suggesting a continuation of upward momentum.

This crossover occurred after a bullish divergence formed during the April lows, further reinforcing a shift in sentiment.

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