The native token of crypto trading platform KuCoin erupted for a 32% price gain over the last 24 hours. The surge vaulted KuCoin Token (KCS) into the top 60 largest cryptocurrencies while exchange volumes bounced back to top 10 levels.
- KuCoin Token (KCS) surged 32% over 24 hours, now ranked 56th largest crypto with $1.25B market cap
- KuCoin exchange saw trading volumes bounce back over $1.2B, reentering top 10 exchanges
- KCS price spikes coincide with big jumps in trading volume, social volume, and buy signals
- But relative strength index over 80 predicts potential for pullback if momentum stalls
- Separately, KuCoin Labs strategically invested in Bitcoin layer 2 solution Dovi to advance BTC ecosystem
KCS now trades around $12.91, equating to a market valuation exceeding $1.25 billion. The stark single-day performance easily outpaced broader crypto markets. It comes as KuCoin volumes resuscitate closer to summer 2022 heights.
Data shows the exchange handled more than $1.21 billion worth of trades in the past day. That figure represents a sixth-place rank among all centralized exchanges after KuCoin slipped out of the top 10 in recent months.
The trading uptick appears tied to a renewed investor appetite for KCS that saw its daily volume spike 188%. Prices also responded to a substantial 108% burst in social volume discussions around the formerly laggard exchange token.
But analysts caution the technicals might be overheating for KCS despite the fundamental tailwinds. Its relative strength index now hovers above 83, implying some signals of short-term overbought conditions opening the door for pullbacks.
Still, momentum could continue gathering steam from here if lower network activity doesn’t drag prices down in the near-term. KCS remains over 40% divorced from price and daily active addresses, flashing an ongoing buy opportunity in Santiment’s view.
Meanwhile, KuCoin is strategically deploying resources to cultivate longer-term ecosystem growth by backing key players. Its investment arm KuCoin Labs recently funded Bitcoin layer 2 protocol Dovi to spur innovation improving BTC scalability, costs and security.
We are delighted to announce our strategic investment in and partnership with @Dovi_L2, an innovative BTC L2 solution aiming to optimise transaction efficiency . We will continue to assist Dovi in achieving its pivotal milestones to bring an efficient application for users! pic.twitter.com/uMCYHw1Res
— KuCoin Labs (@KCLabsOfficial) December 10, 2023
The Dovi financing aligns with stated goals to keep advancing the Bitcoin landscape. KuCoin Labs head says the firm will maintain investing in layer 2 solutions to unlock the next generation of applications that a broader user base demands.