Kaspa (KAS) has seen some recent downward pressure, with the price slipping below the $0.10 support level and now sitting around $0.075. At the same time, the network hashrate has declined from nearly 1.50 PH/s to around 1.19 PH/s over the past month. While this might raise concerns at first glance, it’s not a sign of weakening fundamentals.
The drop in hashrate is likely driven by simple miner economics. As block rewards gradually decrease and competition increases, some miners — especially those with higher operating costs — are scaling back or shutting down. This doesn’t reflect a loss of confidence in Kaspa but rather the natural result of shifting profitability in mining. In many cases, exiting miners also sell their KAS holdings to cover costs, which can add short-term selling pressure.
However, this is a typical supply-side market dynamic, not a red flag. Kaspa’s fundamentals remain strong, development is ongoing, and community interest continues to grow. What we’re seeing now is a short-term adjustment, not a sign of long-term weakness.
