Decentralized and open source computing platform Akash Network has attracted considerable attention in the cryptocurrency market as its original token, AKT, has outperformed the top 100 cryptocurrencies with a 2400% year-to-date price increase.
While Bitcoin (BTC) and other major cryptocurrencies are experiencing price corrections, the Akash Network and its native token are rising at a remarkable rate. To understand the driving forces behind this upward trend, it is essential to dig deeper into what the Akash network represents and its underlying technology.
What is the Akash Network?
Founded by Overclock Labs in March 2018, the Akash Network originated as a distributed cloud computing marketplace with the goal of decentralizing cloud computing. Originally focused on building a traditional multi-cloud deployment platform, Overclock Labs decided to launch Akash.
According to for Messari, the network facilitates the connection between server owners who need computing power to host applications and users who offer cloud computing resources through the Akash Marketplace, where computing resources are bought and sold.
She lies at the core of the Akash network blockchain infrastructure known as Akash, built using the Cosmos SDK and based on the Tendermint consensus mechanism.
Since the launch of Akash Mainnet in September 2020, the network has undergone significant upgrades to increase its functionality. These upgrades include the introduction of the Akash Marketplace, flexible bid pricing, Inter-Blockchain Communication (IBC) compatibility, implementation tools for improved user experience, audited features and Tendermint’s State Sync.
Subsequent upgrades introduced features such as persistent storage, authorized spending, an inflation decay curve, fractional uAKT to eliminate minimum cost deployment, IP leases, provider service splits, Cosmos IBC3 update and Interchain Accounts (ICA).
Messari points out that the most recent upgrades have positioned Akash as a prominent player in the cloud computing and artificial intelligence (AI) development space. Mainnet 6 introduced support for GPUs and stable payments, establishing Akash as an open source marketplace for high-density GPUs and a distributed cloud for large language models (LLM).
In conjunction with this upgrade, Overclock Labs introduced Akash ML, a cloud infrastructure that offers AI developers GPU local instances, with plans to provide on-demand access in the future.
Subsequent upgrades focused on enforcing minimum validation commissions, improving GPU visibility, and ensuring validated bids on multi-service deployments.
AKT Token breaks key trend line
In terms of price action, the Akash Network’s native token, AKT, has seen a notable recent one breakthrough. Over the past 24 hours, AKT has experienced a significant surge of 15.63%, pushing its trading value to $5.64.
One key indicator of this positive development is the ticker’s ability to surpass a diagonal trendline in the 4-hour time frame. Breaking this trend line indicates a potential reversal of the previous downward trajectory and opens the possibility of further bullish market sentiment for AKT.
Moving forward, the focus for AKT is to maintain the previous week’s high of $5,095 as a crucial level of support. By maintaining this level, the sign aims to consolidate its recent gains and strengthen its position in the market.
In summary, the price increase of AKT can be attributed to several factors. The success of the Akash Network’s underlying technology and its value proposition in the decentralized cloud computing space contributes to the positive sentiment around the sign. As the network gains recognition and attracts users, demand for AKT may increase, putting upward pressure on the price.
Additionally, the successful break of the diagonal trendline represents a potential shift in market dynamics as investors may take it as a bullish signal, leading to increased buying activity and further price appreciation.
Featured image from Shutterstock, chart from TradingView.com
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