Kaspa (KAS) Rallies 12% in 24 Hours as Network Activity Cools

Kaspa [$KAS] has been one of the leading tokens making waves in the market of late. The asset posted a 12% gain over the past 24 hours, and its weekly performance has also stayed strong, with a 23% increase. For context, Kaspa is a proof-of-work layer-1 network built on a blockDAG (block-directed acyclic graph) architecture designed to process blocks in parallel.

Yet even as $KAS extends its upswing, data points to weakening activity and liquidity positioning that could pressure the asset in the short term. Sentiment is also in play, and it is currently reshaping the market dynamics.

$KAS Rally Faces Weakening On-Chain Activity

On-chain activity has not supported the price expansion Kaspa has recorded in recent weeks. Daily Active Users (DAU), a measure of the unique addresses active on the chain, has fallen sharply between September 17 and press time.

According to data from Kaspalytics, the figure dropped from36,570 to roughly 7,910 — a 78% decline within a week. Transactions have followed a similar path.

The count of standard transactions over the past 24 hours also declined, from about 208,480 to 113,530 — a drop of more than 94,000 transactions in a single day.

One notable exception is that Kaspa transactions via Coinbase have held at nearly similar levels, suggesting that U.S. investors still hold a stronger bullish outlook.

Taken together, the numbers describe a rally that has been carried more by sentiment and derivatives positioning than by broad network usage — which is what makes DAU and transaction counts the data points to watch in the sessions ahead.

Liquidity Clusters Leave Room for a Pullback

An analysis of $KAS using the Liquidation Heatmap flags the potential for a decline based on liquidity clusters.

Liquidity clusters are areas on the chart where orders concentrate, including buy orders below the price and sell orders above it, with depth indicated by the intensity of the coloration.

At the time of writing, the clusters line up below the price, with only a few above it. The nearest cluster carrying the most depth sits around the $0.038 level, which could act as the next support $KAS trades toward if momentum changes. For now, with momentum remaining on the bullish side, the chance that the price drops to this zone stays slim.

What Is Driving $KAS Higher?

Several factors have contributed to the asset's performance despite the weakening on-chain activity in the market. One of the major drivers of the recent price action has been sentiment. CoinMarketCap reports sentiment at 4.81 at the time of this report.

The sentiment metric uses a scale from -10 to 10, and at its current reading, there is a strong chance that bullish momentum is maintained and the asset continues to rally.

Perpetual Market Capital Flow has also contributed, with the Funding Rate — the periodic payment exchanged between traders in the perpetual futures market, typically positive when long positions dominate — and Open Interest, the count of outstanding perpetual contracts, remaining in bullish territory. Until there is a clear shift in sentiment, the bullish momentum remains.

Bottom Line

$KAS gained 12% in 24 hours, but declining daily active users and transaction counts point to weakening on-chain activity. Strong sentiment and bullish derivatives positioning continue to support $KAS, although liquidity clusters leave room for a pullback toward $0.038.

Sources: CryptoNewsNet; original reporting via AMBCrypto