Kusama Price Up 2% – Time To Buy KSM?

Kusama is a top crypto project that enables developers to build cutting-edge blockchain solutions in a fast-paced environment.

Even though its KSM token has seen its value drop with the wider crypto market, it is making a comeback.
With Kusama launching its parachain auctions, many investors want to buy KSM, given its unique role in the Kusama ecosystem.

But before dipping your hand into your pocket, it is best you understand what the Kusama protocol is all about and why we consider it the perfect time to buy KSM.

Kusama: Fast-Paced Polkadot Cousin

The simplest way of explaining what Kusama is all about lies in understanding what the Polkadot protocol aims to achieve.

However, for this article, Kusama is the canary network for the Polkadot network.

Many users have termed it the ‘wild cousin’ because all projects that eventually get implemented on the Polkadot network are first tried out and vetted through the Kusama ecosystem.

In addition, Kusama is user-specific, meaning it is not meant for anyone. It is a sort of testbed where developers can check out hidden vulnerabilities in their code. Also, they can use the Kusama network to try out innovative features and finetune them for the average user.

According to the development team, Kusama differs in a few ways from Polkadot. First of all, it is an unaudited protocol, meaning that lines of code may become redundant as it is a software wild west.

Another major difference is the speed. Kusama is four times faster, which appeals to development teams looking for an environment where they can build fast-paced projects without constantly needing to address security walls.

However, it uses the same sharded technology as the Polkadot network, and it aims to create an interoperable blockchain platform for developers to transfer value seamlessly.

Kusama uses the KSM token for governance and payment settlement. It favors a nominated proof-of-stake (NPoS) consensus algorithm, which allows it to launch rapid on-chain upgrades without forking, and support cross-chain communication with other blockchains on its platform.

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KSM: Struggling Against Market Stalemate

KSM is the 50th most valuable cryptocurrency and has a market valuation worth over $1.5 billion. The total number of KSM tokens has been fully circulated, meaning that KSM token value will continue to rise in the future.

With a current price peg of $185.42, KSM is up 2.23%, riding the volatile crypto wave in the last 24 hours. This rally has impacted market sentiment, with more investors looking to buy KSM.

KSM has been on a downward trajectory lately, all due to Bitcoin’s negative price action. With the premier digital currency coming under serious scrutiny, the crypto market has been exposed to unprecedented volatility and negative reviews, and these have slowed the growth of the nascent industry.

Price-wise, KSM has seen better days surging to a record value of $592.69 before losing steam a few days later.

Meanwhile, it has continued its struggle to rise above the resistance level of $511 but with little success. Even though it dipped to $172.92 on June 26, it is still more than 100% than its 2021 opening price of $69.

KSM Technical And Fundamental Analysis

Meanwhile, the rally has had little impact on its performance in the market. The digital asset is trading below the 20-day moving average (MA) price of $206.35, pointing to a bear market. If KSM continues its upward trend, it may break above the indicator and find support at $210.

The relative strength index (RSI) is at 39.09, meaning it is trading above the oversold level.

Forecasts for the KSM token are bullish, with Wallet Investor putting its one-year price at $651.663. The five-year prediction is at $2,392.410.

The Kusama network is currently auctioning off its parachains, allowing developers to connect their decentralized applications (dApps) to the Relay Chain of the multi-chain solution. So far, over four projects have secured slots on the Kusama network, with

Moonriver already producing on the network. Moonriver, which is the sister network of Ethereum-based Moonbeam, secured the second parachain after raising $45 million from investors.

The parachain auctions are ongoing, and the project’s success will impact the upcoming Polkadot parachain auctions. With more and more protocols piling into the heterogeneous network, Kusama may become a developer’s haven in building next-generations services.

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