Many people believe that DeFi platforms like Kava must rely on bull markets to explode. However, after observing for the past year, I found that Kava's value is even more apparent in bear markets.
First is the borrowing demand. During a sluggish market, many people choose to mortgage BTC and ETH to obtain stablecoins for circulation. I have checked the data, and from the end of 2024 to the beginning of 2025, the number of collateralized loans on Kava did not decrease; instead, it grew by 15% at price lows. This indicates that Kava's role as a 'financing tool' is becoming more prominent.
Secondly, the performance of the stablecoin USDX. When the market declines, the price of USDX still fluctuates around 1 dollar, with volatility maintained within the ±1.5% range, which is much more stable than some algorithmic stablecoins. This 'anti-risk property' is even more precious in a bear market.
Looking at ecological activity, I observed that Kava's governance forum still has users discussing parameter adjustments and risk control models. Even with low prices, the community has not fallen silent, which is rare in many projects.
From my perspective, Kava's stability is a kind of 'counter-cyclical advantage.' It is not maintained by bull market speculation, but rather has a set of stablecoins and lending systems that help users survive even during downturns. That's why I prefer to write about it during bear markets, as that’s when you can see if a project truly has resilience.
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