Klaytn has started the week excellently after the team proposed a block reward reduction over the weekend.
KLAY, the native coin of the Klaytn blockchain, is the best performer amongst the top 100 cryptocurrencies by market cap so far today.
KLAY has added 25% to its value in the last 24 hours, outperforming the broader cryptocurrency market.
The rally comes after the Klaytn team announced a governance proposal to reduce block reward on its blockchain by 1/3. The block reward reduction is in order to optimise the level of KLAY emission.
According to the team, if the proposal is approved by the Governance Council, the inflation adjustment will be reflected on-chain by the middle of next month.
KLAY’s rally also comes as the broader cryptocurrency market starts the week in a positive manner. The total cryptocurrency market cap stands at $931 billion, up by 1% in the last 24 hours.
Bitcoin has regained its value above $19k after slipping toward the $18,800 mark over the weekend. BTC is now up by nearly 1% so far today.
Ether is also trading above $1,300 after spending the best part of last week trading below that threshold and is now up by more than 2% today.
Key levels to watch
The KLAY/USDT 4-hour chart is extremely bullish, as Klaytn has been performing well over the past 24 hours.
KLAY/USDT Chart By TradingView
The MACD line is above the neutral zone, indicating that Klaytn has been performing well over the past few hours. The 14-day relative strength index of 78 also shows that KLAY is heading into the overbought region if the momentum is sustained.
At press time, KLAY is trading at $0.1864. If the rally continues, KLAY could cross the first major resistance level at $0.2234 before the end of the day.
However, it would need the support of the broader cryptocurrency market to reach the $0.2540 resistance level for the first time since August.