Kaspa Supply Hits All-Time High in 1Y+ Holders as Covenants Promise Programmable KAS

Kaspa just passed 2.1 billion transactions. That is a lot. People are using it more and more. The network can handle 10 blocks every second. That makes it one of the fastest Proof-of-Work coins out there.

Also, most of the supply is already mined. 95.55% of 28.7 billion KAS is out. The reward for mining one block is now down to 2.75 KAS. That tighter emission structure reduces future sell pressure and gives the asset a stronger supply foundation. 

Attention is also turning to the upcoming Toccata hard fork expected between June 5 and June 20, 2026, which will introduce KRC-20 tokens, SilverScript smart contracts, and zero-knowledge verification features. Even with the KAS price trading near the $0.038 area after a 15.67% monthly climb, the market appears to be consolidating ahead of those major network upgrades.

Kaspa Long-Term Holder Supply Reaches Record High as Conviction Strengthens

A new chart shared by Kaspa Daily shows that the percentage of KAS supply held for more than one year has climbed to a fresh all-time high. The blue line tracking dormant supply continues moving upward even through periods where price action weakened. That matters because coins held for over a year are usually controlled by investors with stronger conviction and lower selling activity.

The chart also shows a major divergence between price and holder behavior. From the end of 2025 to the start of 2026, the price fell from above 15 cents down to about 3 cents. But here is the interesting thing. 

The amount of supply that has not moved in over a year kept going up. That means a lot of people just held on. They did not sell even when the price dropped. In crypto markets, that kind of supply tightening can reduce available liquidity during future demand spikes.

Another important detail is the pace of accumulation. The dormant supply metric moved from nearly 15% in late 2023 to almost 50% by May 2026. That is a huge increase in coins leaving short-term circulation. Markets usually become more sensitive to demand when available liquid supply shrinks, especially during periods where network activity is expanding at the same time.

The tweet also points to a cleaner accumulation structure than speculative trading activity. Short-term traders move in and out quickly, but wallets holding for over a year tend to represent patient capital. With Kaspa transaction count passing 2.1 billion and mined supply nearing completion, the rise in dormant supply adds another strong fundamental factor behind the KAS price structure.

Kaspa Covenants Could Unlock Smart Money Features Without Slowing the Network

A post shared by Crypto Proselyte focused on Kaspa Covenants, one of the most anticipated features tied to the Toccata hard fork. Covenants allow users to attach programmable conditions directly to KAS transactions. Instead of coins being freely spendable at any moment, wallets can define rules enforced directly by the network itself.

The examples shared in the post show how flexible this system could become. Users may lock funds until a future date, restrict transfers to approved wallets, create automatic refunds if conditions fail, or require multiple signatures before spending. Those functions are already common in advanced smart contract ecosystems, but Kaspa aims to integrate them without slowing transaction processing or creating a heavy global-state system.

What makes this development important is Kaspa’s architecture. The network uses a BlockDAG structure combined with Proof-of-Work security and a UTXO model similar to Bitcoin. Covenants are designed to work directly inside that model, allowing programmable features without sacrificing the speed that helped Kaspa stand out in the first place. That balance could become a major advantage if developers begin building financial applications on the network.

The upcoming hard fork could also expand Kaspa beyond simple peer-to-peer payments. Smart wallets, escrow systems, recurring subscriptions, inheritance vaults, native assets, and DeFi applications become possible once programmability enters the ecosystem. If developer activity increases after launch, the KAS price could start reacting more to ecosystem growth instead of pure market speculation.

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Here’s What the Kaspa Chart Is Showing

We had a look at the chart, and price action shows a market cooling down after a strong rally earlier this month. The KAS price pushed from near $0.032 toward the $0.041 area before sellers stepped in aggressively. That rejection created a lower high structure over the past few sessions, with price drifting back toward the $0.037 region.

The RSI indicator has also weakened sharply. It dropped under the neutral 50 level and moved close to 40, showing fading bullish strength in the short term. 

the RSI histogram, turned deep negative. That tells you the push higher lost steam after the last breakout try. Trading activity has also slowed down over the last day.

But even with that, the price keeps making higher lows compared to where it was in April. Buyers stepped in to defend the $0.36 to $0.37 zone more than once. So that support has not broken yet. If buyers can hold that area, the price could settle down and try to push toward 4 cents again. A clean move above $0.4 would probably open the door back to the last peak near $0.41 cents.

The bigger story is still about the basics. More transactions every day. More supply sitting idle. And the Toccata upgrade coming up. All of that gives people reasons to pay attention, even when things cool off for a bit. The market seems to be waiting for something bigger to happen before making its next real move.

Kaspa is entering an important phase where both network activity and protocol development are accelerating at the same time. The rise in one-year holder supply shows that many investors continue accumulating through volatility, even after major corrections. Meanwhile, Covenants and the Toccata hard fork could push Kaspa deeper into programmable finance without sacrificing its fast BlockDAG infrastructure. For now, the KAS price remains in consolidation mode, but the underlying network data continues pointing toward a much larger ecosystem transition in 2026.

Frequently Asked Questions

Why is KAS price down today

Kaspa is likely pulling back after a strong recent rally, with many traders taking profits around current levels. At the same time, lower trading volume and the lack of fresh catalyst news are leaving the market with less buying pressure in the short term.

Will Kaspa ever reach $1

Kaspa reaching $1 is possible, but it would require much higher adoption, stronger demand, and a supportive overall crypto bull market. It would also mean a significant increase in market cap, so it’s more of a long-term scenario than a near-term expectation.