Ahmet R.
Ahmet R.
May 31, 2022

Karura Coin: An All-in-One DeFi Platform

tl;drKarura Coin platform is the sister network of Acala on Kusama that provides a scalable, EVM-compatible network optimised for decentralised finance. Karura Coin platform offers multiple DeFi solutions, such as Karura Swap, aUSD, and much more. Regarding financial matters, Karura price has fallen over the last six months. Keep reading to deeply delve into Karura Coin, Karura price prediction, and Karura tokenomics to see if it is a good investment.
Karura Coin: An All-in-One DeFi Platform
Karura Coin: An All-in-One DeFi Platform
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What Is Karura Coin?

Karura Coin platform is Kusama's all-in-one DeFi hub. Karura Coin platform is a scalable, EVM-compatible network suited for DeFi founded by the Acala Foundation. It is developed to serve as a hub for decentralised finance on the network, similar to Acala's function on Polkadot. A trustless staking derivative (liquid KSM), a multi-collateralized stablecoin backed by cross-chain assets (aUSD), and an AMM DEX are among the financial applications available on Karura Coin, all of which include nominal gas fees that can be paid in any cryptocurrency. The name of Karura Coin is inspired by "Karura," a fire-breathing bird from Japanese mythology that is said to resemble a phoenix!

What Is the Difference Between Karura Coin and Acala?

Acala and Karura Coin work in parallel. Karura Coin, in particular, is implementing DeFi on Kusama in the same way as Acala does on Polkadot. Karura Coin has roughly the same codes as Acala; both bring scalable, easy-to-use and fast DeFi cross-chain ecosystems for Kusama and Polkadot. Karura Coin and Acala will be fully interoperable once Kusama and Polkadot are bridged.

How Does Staking Work on Karura Coin?

Karura Coin offers staking as one of its financial services. Users can lock up KSM tokens in return for LKSM (Liquid KSM) as collateral and interest using Karura's basic Liquid Staking product. This mechanism works similarly to staking LDOT on Acala. LKSM has multiple functionalities on the Karura Coin platform. The LKSM coin is fungible, meaning it may be exchanged on exchanges, used for payments, and even used in DeFi apps. The token can extract residual value from KSM as a derivative without affecting the network's security. It also increases the platform's liquidity and unlocks a broader range of Proof-of-Stake use cases.

Why Is Karura Coin On Kusama?

Karura Coin is built on Kusama, the faster cousin of Polkadot and is a multi-chain network for breakthrough innovation. Kusama and Polkadot are separate and self-contained networks developed similarly. However, Kusama has faster governance parameters and can tolerate a higher degree of risk. Karura Coin platform can push the boundaries of innovation by working on Kusama, enabling the Acala Foundation team to launch ambitious new financial ideas. Karura Coin platform will be able to use Kusama's plug-and-play security while also benefiting from high-capacity processing speeds, nominal gas fees, and interoperability across numerous networks, all of which will be eventually connected to Polkadot.

What Is Karura Swap?

Karura Swap is a product of the Karura Coin platform and is a cross-chain exchange that allows users to trade in a trustless manner. An automated liquidity provisioning protocol powers Karura Swap. Karura Coin platform will enable users to become liquidity providers on Karura Swap and earn passive incomes in two ways, i.e., earning exchange fees from Karura Swap and receiving stability fee profit-sharing from the aUSD stablecoin protocol. The following image is a preview of Karura Swap.

Karura Swap In Karura Coin Platform
Karura Swap In Karura Coin Platform

What Are Karura Coin Use Cases?

Karura Coin (KAR) is the native cryptocurrency of the Karura Coin platform with multiple use cases. It can be used for 

  • paying transaction fees,
  • node incentivisation,
  • governance of the Karura Coin platform,
  • algorithmic risk adjustment, and
  • pallet deployment.

Karura Price

Karura price has seen an overall decreasing trend over the last six months. Karura Price was $6.24 on Nov 30, 2021, and constantly dropped below $0.6 when writing this post on May 30, 2022.

Karura Coin Market Cap and Liquidity Score

The data at Cryptologi.st shows that Karura Coin market cap rank followed the same negative trend as its price from Dec 2021 to Mar 25, 2022. However, Karura Coin market cap rank saw a sharp jump between Mar 25, 2022, and Apr 2, 2022, peaking at the rank of #410. After that, the trend got reversed to follow its previous negative path. Karura Coin liquidity score is 26%, which is lower than the market’s average score, making it a challenging sale if the market is falling. 

Karura Coin Development Stats

We analysed the GitHub account of Karura Coin to see how the progress of its development is. Data on Cryptologi.st shows that there are more than 30 contributors to the development of Karura Coin, who committed approximately 55 code commits in May 2022. 

Disclaimer: Don’t take this article as financial advice. You need to DYOR (Do Your Own Research) before investment.

Karura Price Prediction

As an investor in a highly unstable market like the crypto market, you need to know financial experts’ opinions and price predictions of a crypto project. We will go through the report published on Priceprediction.net about Karura Coin. You need to keep in mind that these are not financial advice but only predictions. Before making any financial decision, you should do your own research.

Karura Price Prediction For 2022

The reports claim that the Karura Coin price will be at least $0.73 in 2022, and it can potentially go up to a maximum of $0.86. The experts predict that the average trading price of Karura Coin would be $0.76.

Karura Price Prediction For 2023

It is forecasted that the Karura Coin will be traded at a minimum price of $1.06 throughout 2023. Optimistically, the price can touch a maximum of $1.32. Moreover, financial experts believe that Karura Coin would be traded with an average price of $1.09.

Karura Price Prediction For 2024

Crypto experts expect the Karura Coin price to be at least $1.53 in 2024. However, the price can peak at $1.86, while the average trading price is expected to be $1.58.

Karura Price Prediction For 2025

It is expected that the Karura Coin price will be traded at a minimum of $2.09 in 2025, with a maximum expected trading price being $2.65. Karura Coin is forecasted to be traded for an average price of $2.17 in 2025.

Karura Coin Tokenomics

Taking about Karura tokenomics, we should say that Karura Coin (KAR) has a fixed supply of 100,000,000. The entire supply is minted in the genesis block at launch. In the following image, you can see the distribution of the Karura Coin (KAR).

Karura Coin Tokenomics
Karura Coin Tokenomics

Is Karura Coin A Good Investment?

It is a fact that the Karura Coin platform is a high-tech DeFi platform that offers a wide variety of financial services. However, the crypto market is a high-risk market by nature, and especially projects with low liquidity scores are considered riskier. Karura Coin’s liquidity score is 26%, making it a non-safe investment. It is not a buy or sell signal, but we are here to help you make sound decisions by providing a watchlist for you to put your selected coins and monitor their growth. You can also access the news of the Karura Coin and the top 1500 crypto projects to stay attuned to the market. Last but not least, Cryptologi.st provides a free screener tool for you to compare various crypto projects. Introduce us to your friends!

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