KDA Drops More Than 60% – Should You Buy?

Kadena (KDA) has seen a massive crash of over 60%, falling to around $0.09 after the Kadena Organization announced it would cease all business operations due to “challenging market conditions.” 

This marks one of the sharpest single-day declines in the project’s history and has left investors questioning whether KDA’s long-term future is still viable.

Despite the closure of the organization, Kadena’s decentralized Layer-1 blockchain remains active through its miners and node operators. The team also plans to release a new software update to ensure network stability, allowing the blockchain to continue running without centralized oversight.

Kadena’s Collapse: What Triggered the 60% Drop

The price crash followed the Kadena Organization’s official statement confirming it would shut down due to unsustainable financial conditions and competitive market pressures. The news caused panic selling, erasing nearly $70 million in market capitalization within hours.

Kadena’s token, once a top Layer-1 project with a market cap nearing $4 billion during the 2021 bull market, now trades around $25–30 million. The sudden decline highlights how dependent smaller blockchain ecosystems are on active development and centralized leadership for maintaining market confidence.

Kadena Blockchain Still Runs Without the Core Team

While the Kadena Organization is winding down, the blockchain itself remains operational thanks to its proof-of-work consensus and decentralized infrastructure. Independent miners and community validators continue to secure the network.

The organization has confirmed a forthcoming software release to ensure the blockchain’s continued functionality, even in the absence of formal oversight. This transition could turn Kadena into a fully community-driven network if the ecosystem mobilizes effectively.

Tokenomics: Supply, Distribution, and Market Outlook

Kadena has a maximum supply of 1 billion KDA tokens, with around 335 million currently circulating. Approximately 566 million tokens are reserved for mining rewards that will be distributed through 2139, providing long-term supply incentives for network participation.

The Kadena Organization still holds about 83.7 million tokens locked until 2029. While this adds future supply risk, it also prevents immediate dumping on the market.

Market analysts currently maintain a bearish outlook in the near term due to the halted development and unclear governance. Price forecasts suggest possible stabilization between $0.21 and $0.40 by the end of 2025 if the community can sustain and rebuild trust.

Read more: AI Agent Hype, The Emergence of AI Layer 1 in Crypto and Beyond

Should You Buy KDA After the Crash?

Buying KDA now is a highly speculative move. The project faces significant uncertainty with no official team backing, unclear governance, and diminished investor confidence. However, contrarian traders may see potential in the token’s deeply discounted price if community-led efforts succeed.

Investors should approach KDA with caution, focusing on the following factors:

• Whether the community successfully coordinates development and marketing efforts
• Network activity levels among miners and validators
• Future governance proposals or foundation reboots
• Any signs of renewed ecosystem partnerships or listings

While a recovery to $1.50–$4.00 by 2030 is possible in an optimistic scenario, it depends entirely on community resilience and adoption.

Conclusion

Kadena’s 60% crash underscores the fragility of crypto projects dependent on centralized teams. The blockchain continues to function, but the long-term success of KDA now hinges on whether the community can step in to lead.

For now, KDA remains a high-risk, high-reward asset. Conservative investors should stay on the sidelines, while risk-tolerant traders may find speculative opportunity in the current low-price environment.

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FAQs

Why did Kadena (KDA) drop over 60%?

The price crash occurred after the Kadena Organization announced its closure, leading to widespread panic selling and a loss of investor confidence.

Is Kadena still running after the shutdown?

Yes, the Kadena blockchain remains operational through miners and node operators, even though the founding organization has ceased operations.

How many Kadena tokens are in circulation?

Approximately 335 million KDA tokens are currently circulating out of a maximum supply of 1 billion.

Will KDA recover in 2025?

Short-term forecasts remain bearish, but recovery to $0.21–$0.40 by late 2025 is possible if the community maintains the network effectively.

Is it a good time to buy KDA?

Buying KDA now involves high risk due to halted development and governance uncertainty. Only speculative investors comfortable with volatility should consider entry.