New Kind of Network’s native cryptocurrency token NKN has seen its price surge by over 1300% in the past month alone.
What Happened: NKN rose to a high of $0.7749 on April 6, gaining 160% overnight as the blockchain reported over 62,900 full consensus nodes, as first reported by Cointelegraph.
Measured by consensus nodes, NKN is essentially the largest blockchain network operational in the world today.
By comparison, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which are the largest cryptocurrency blockchains by market cap, each has about 10,000 full consensus nodes at the moment.
In a recent blog titled “Why billions of nodes matter,” Zheng “Bruce” Li explained, “NKN is fundamentally a data communication network. So the more nodes, the higher the network capacity.
Imagine it is Vodafone in Europe, AT&T in the US, or China Mobile in China, the more cell towers they have, the better the user experience on their smartphones. It applies to NKN as well, since each node is doing the data relay and bandwidth sharing.”
Why It Matters: NKN is an open-source protocol for public blockchain-based peer-to-peer networks to share network bandwidth and internet connectivity. The decentralized proof-of-work (PoW) network was launched in 2018 but has gained the most traction in the past few weeks.
According to data from Binance Research, the number of daily transactions on the NKN blockchain spiked to an all-time high of 729, compared to earlier months, where it recorded an average of 20 to 30 transactions a day. The number of large transactions, that is the on-chain transactions, exceeding $100,000, also witnessed a sudden uptick over the past month.
The project’s increased momentum took shape shortly after crypto exchange Binance announced that NKN “hodlers” could earn up to 20% APY on their holdings through their Binance savings account.
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