Kaspa, the decentralized Layer-1 blockchain, has announced significant updates focused on enhancing its network scalability and speed throughout 2025. The project, which operates without central leadership or institutional funding, is implementing initiatives like Crescendo and DAGKnight within its decentralized, community-driven framework. These upgrades aim to maintain high scalability and security, positioning Kaspa as a key player in blockchain efficiency by redefining transaction speed and market dynamics.
The development follows a Bitcoin-like decentralization model, emphasizing a purely community-led approach. "Our focus remains on scalability and energy efficiency to enhance the user experience," commented an industry observer. The crypto community has reacted positively to these scaling enhancements, which are seen as strengthening Kaspa's competitive edge and reaffirming its role in decentralized networks.
Concurrently, on-chain data reveals a notable shift in Kaspa's holder composition. Analysis shared by Kaspa Daily shows that the share of holders who have held KAS for more than three months dipped slightly in December 2025. However, medium-term holders (6+ months) and long-term holders (1–2+ years) have steadily increased their share. This indicates a rotation where short-term traders are exiting, likely due to frustration with sideways price action, while longer-term conviction continues to build.
This holder rotation matters because short-term holders tend to sell quickly into volatility, while long-term holders are less reactive. As weak hands exit and conviction holders take over, sell pressure often thins, potentially reducing the risk of sharp downside moves caused by panic selling, though it doesn't guarantee an immediate price rally.
From a technical perspective, the Kaspa price remains in a consolidation phase. Trading around the $0.04–$0.045 area, momentum indicators like the Williams %R show indecision, and the On-Balance Volume (OBV) has flattened, suggesting volume-driven distribution has slowed. The Average True Range (ATR) is trending lower, indicating compressed volatility and a market waiting for a trigger—either from broader market moves or a Kaspa-specific catalyst.
The combined narrative suggests Kaspa is undergoing a fundamental strengthening through technological upgrades and a shift toward a more stable, long-term oriented holder base, which could lead to less fragile price action dependent on real demand rather than speculation.
