Kaspa (KAS) is gearing up for a transformative covenant-centric hardfork scheduled for May 5, 2026, which aims to fundamentally expand the network's capabilities from a fast payment system to a full-fledged smart contract platform. This upgrade is set to inject programmability directly into Kaspa's Layer 1, moving beyond its current identity as an ultra-fast proof-of-work network powered by a blockDAG architecture.
The hardfork introduces three major features. First, it will enable support for native assets, allowing developers to issue their own tokens (similar to KRC20 standards) directly on Kaspa. This is a foundational step for building DeFi and NFT ecosystems. Second, the upgrade includes Covenants++, which expands transaction rules to enable advanced conditions like on-chain escrows and multi-signature security, offering smart contract-like functionality within Kaspa's UTXO model. Third, the protocol will integrate zero-knowledge proof verification (Groth16) at the base layer, enabling privacy tools and secure verification systems.
To make development more accessible, the Kaspa team is also introducing Silverscript, a new high-level programming language built specifically for Kaspa covenants. The network's testnet (Testnet 12) for these features is already live.
Despite these significant developments, KAS price action has remained muted. The token was trading around $0.03081, with the chart showing consolidation and lower highs in a tight range. Key technical indicators like the CCI show neutral momentum, while ATR indicates cooling volatility. The network, however, continues to show strong usage, having recently crossed 600 million total transactions.
On the institutional front, Kaspa has gained custody support from Zodia and saw a regulated Exchange-Traded Product (ETP) launch in Sweden. The market has not yet reacted to the scale of the upcoming transformation, creating a potential asymmetry given Kaspa's sub-$1 billion valuation. Price targets for the short term are set at $0.033 for resistance and $0.030 as crucial support.
