Klaytn (KLAY) recently saw an unexpected surge in price, rising to as high as $0.1985 amid higher retail euphoria.
Klaytn, a public blockchain project led by the South Korean telecom giant Kakao, recently saw a 25% surge in price. Market participants were baffled by the sudden gains.
Apart from retail interest, however, there were more factors at play behind the altcoin’s price surge.
Klaytn developers back price action
One reason behind the sudden price rise could be the launch of a beta version of its decentralized governance portal, Klaytn Square. According to an update from Klaytn Foundation, the Klaytn Square portal launched in beta to advance on-chain governance.
This was coupled with Klaytn’s Klaymakers22 hackathon, which saw over 23,000 workshop participants and 174 project submissions. These events likely played in favor of the KLAY price.
One of the most notable on-chain changes in Klaytn was its development activity which witnessed a boost, likely due to the hackathon event. The development activity contributors metric for KLAY skyrocketed to an all-time high and maintained higher bounds from the end of October through November.
Notably, development activity continued to shine despite the larger crypto market’s bearish blues. Development activity for KLAY reached a local high around Nov. 9 and maintained these higher levels despite minor drops.
Retail euphoria at play
KLAY saw a significant rise in 24-hour trade volumes, which rose by 193.61% on Nov. 24. While development activity continued to outshine other on-chain metrics, KLAY whales made some moves that briefly pushed price action upwards.
The chart showing the percentage of total stablecoin supply held by whales with over $5 million noted a spike of over 1.5% in just a day.
Despite the price gains, however, social metrics saw no major pump. Social volumes maintained lower levels while weighted social sentiment was still in the negative territory.
Seemingly, development activity coupled with some whale accumulation pumped the altcoins price up.
Going forward, the $0.20 mark can play an important turning point for KLAY. A reversal could be confirmed if the KLAY price can hold above this level and convert it to resistance.
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