Key Insights:
- Kadena will end all business and network maintenance activities due to market challenges.
- The KDA token price dropped by over 60% after the announcement of the closure.
Kadena Announces End of Operations
Layer 1 blockchain project Kadena has announced it will shut down due to unfavorable market conditions. The company confirmed that all business operations and blockchain maintenance will stop. The team stated that the network will continue running until miners and validators complete their exit.
According to Kadena Blockchain, about 566 million KDA tokens remain in mining rewards, which are scheduled to be distributed until 2139. Kadena will continue to function as long as miners and validators remain active. The decision marks one of the most notable shutdowns among blockchain projects this year.
Market Reaction and Token Decline
Following the announcement, Kadena’s native token, KDA, saw a steep decline in value. The token dropped by about 60.21% in one day, trading around $0.088 at the time of reporting. Market data indicate that trading volumes increased significantly as investors responded to the news.
Traders expressed uncertainty about the future of the remaining ecosystem. “It is unclear what will happen to ongoing projects built on Kadena. The decline reflects broader investor sentiment amid a challenging market for blockchain ventures.
Future of the Kadena Network
Furthermore, Kadena stated that while it will no longer support development or maintenance, miners and validators may continue operations until the network becomes inactive. The team thanked its community for its support over the years, but did not provide details about asset migration options.
The blockchain’s long-term mining schedule means rewards will continue to be released gradually. However, without official maintenance, network security and activity may decrease over time. The project’s closure adds to the list of blockchain networks facing operational challenges during prolonged market downturns.
