Kusama Price Up By 14% – Time To Buy KSM?

Kusama’s wild nature has appealed to developer-focused projects looking to deploy their protocols faster and try out innovative features without any limits.

Because its parachain auctions are currently underway, this might be a great time to buy KSM.

Headed by the co-founder of Ethereum Gavin Wood, Kusama has become a playground for tech-focused projects. It has often been called Polkadot’s wild cousin, and it has grown exponentially in the last few months.

This article will dive deep into what Kusama has to offer to the blockchain ecosystem and if this could be the right time to buy KSM.

Kusama: A Polkadot Experiment

Investors may just be coming across this blockchain protocol, but the Kusama network has been around since 2019.

Popularly referred to as the wild cousin of the Polkadot network, Kusama is a development environment that performs the same procedures as its more secure twin.

However, it differs in its user base and speed. The Kusama network is more focused on the developer community, so you should not be thinking of going anywhere near it if you do not know what you want to do.

Regarding speed, Kusama is four times faster than Polkadot, making it an ideal reconnaissance network.

Most of the development that eventually filter down to the Polkadot blockchain come from Kusama, and many development teams use it as a testbed for their products.

It serves as a sandbox version of the Polkadot network enabling developers to better experiment and tests decentralized applications (DApps). Like its permissioned twin, Kusama uses a relay chain architecture through which other blockchain platforms connect to transfer value in a trustless manner.

Built on Substrate, Kusama is a multichain heterogeneously-sharded design that uses an upgraded nominated proof-of-stake (NPS) consensus algorithm, which allows it to validate transactions faster while consuming less energy.

This consensus protocol allows it to perform rapid on-chain upgrades without the need for a fork while supporting cross-chain message passing (XCMP).

Meanwhile, Kusama also uses on-chain governance capabilities through its native token, the KSM. This allows anyone with the tokens to vote on governance proposals, changes to the platform, and feature requests.

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KSM: Set For A Major Rally

Kusama stands at the tail-end of the top 50 most valuable cryptocurrencies on the global crypto chart ranking. It boasts over $1.9 billion in market cap with a 96.06% increase in its 24-hour trading volume. This shows that more investors are looking to buy KSM.

With a $237.76 current price peg, KSM has increased 14.06% on the daily trading chart. This one-day rally has brought more attention to the canary network as the crypto market rallies.

But this does not mean that KSM has had a smooth ride all through the year. Starting the year at just $69.5, KSM has surged more than 5,000% in 2021, rising to an all-time high (ATH) of $621.71 on May 18.

However, the crypto market crash that was occasioned by a backlash from Chinese authorities and Tesla boss Elon Musk saw KSM lose about 49% of its value and trading at $313.81 on May 22. It has struggled to make a comeback but has seen resistance at the $511.31 level for much of June.

It fell further to a mid-year low, finding support at the $175.49 price peg. However, the downturn has since reversed, with KSM rallying 10% since the beginning of July.

KSM Technical And Fundamental Analysis

This uptrend has pushed KSM back into the limelight. The digital asset is trading above the 20-day moving average (MA) support indicator at $217.31, indicating a bullish trend. The relative strength index (RSI) currently stands at 44.97, meaning that KSM is trading over the oversold level and trading below the overbought margin.

This recent RSI was an improvement from two days earlier when the oscillator stood at 37.62, trading dangerously close to the oversold level.

Market analysts also predict that KSM is set for the big stage, making it attractive for those who want to buy KSM. According to a Digitalcoin analysis, KSM will end the year at $353.33 while it will surge to $1,037.61 by 2028.

Wallet investor is even more bullish and believes 1 KSM will trade for $719.731 by the end of 2021. Its five-year forecast puts KSM at a whopping $2,760.790.

The Kusama network is currently auctioning its parachain slots, and several blockchain firms have already secured spots on the heterogeneous platform. The first is the Kaura network, a sister network of Acala network, which raised over $100 million in crowdloans to win the first parachain slot.

Other blockchain firms like the Shiden network have also secured a space in the hotly contested auction exercise.
Kusama is also looking to integrate non-fungible tokens into its relay chain network. It calls this new combination ‘art legos’ and launching it on its RMRK NFT system.

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