Kusama Price Up By 20.44% – Time To Buy KSM?

The Kusama blockchain is expected to play a crucial role in the hotly contested decentralized finance (DeFi), and this could be a great time to buy KSM for a bargain.

Kusama: Pre-Production Factory For Polkadot

Founded in 2016 by former Ethereum co-founder and CTO Dr. Gavin Wood, Kusama is a public pre-production environment for the Polkadot network. It enables developers to experiment and test new blockchains or applications before launching them on the network.

This makes Kusama act as a sandbox for developers to test early versions of their projects. Also, official Polkadot updates are run on the Kusama network before they are released.

Development teams looking to test and run arbitrary updates to their protocol can leverage Kusama’s speed to fast-track their developments. It gives more flexibility and has looser rules than its sister network and lesser tough governance parameters.

However, Kusama is a more advanced and unaudited version of the Polkadot version. This sees it running the same architectural design as its younger version. It uses two base blockchains – a mainnet called a relay chain and user-generated networks.

Kusama’s Relay Chain is the heart of the blockchain platform. It has the duty of validating transactions on the network. Its user-generated network is called a parachain which allows separate blockchains to build and develop on the Kusama network while leveraging its security. Parachains are customizable and are always auctioned off every two years.

Like Polkadot, Kusama seeks to create an interoperable and scalable network for developers. It is built on Substrate.
KSM is the governance token for the Kusama network, and holders can vote on certain development and software upgrades for the network.

KSM: Breaking Through The Bear Ranks

Kusama is the 51st most valuable cryptocurrency with a market cap worth over $2.4 billion. Its 24-hour trading volume has picked up by 36.96%, which shows that investors want to buy KSM.

KSM has had a rollercoaster ride this year with several rallies and dips.

However, 2021 has been its best year yet. Coming into the year at $69.5, KSM began its ascent into blockchain prominence, breaking new records weekly. It surged 60% from January to February, surging to $212.51 at the tail end of the month.

This bullish momentum continued into March as KSM moved to make a record value of $547.91 before the bears caused its price to drop.

However, it retested this price action in May twice before surging to an all-time high (ATH) of $592.69 on May 18.

This coincided with the beginning of the bear market, with the token dipping to $262.97 five days later. But the digital asset was not yet done, and it rose to $511.31 on June 9 before losing equilibrium.

This saw KSM experience its biggest dip, losing more than 50% as the bears continued to dictate the market direction. It finally found support at the $148,85 price target and is slowly picking its steps back to the top.

However, KSM, like several crypto protocols, is hugely dependent on the price movement of BTC.

At press time, the cryptocurrency is trading at $285.07, up 20.44% in the last 24 hours.

This means that the uptrend of the premier digital asset recently shows that this may be an ideal opportunity to buy KSM.

KSM Technical And Fundamental Analysis

Like its sister network, KSM has caught some tailwinds in the last few days.

The digital asset is trading above the 20-day moving average (MA) support price of $208.98. Its steady upward climb shows that it is unlikely to drop anytime soon.

Looking at its long-term prospect, KSM falls slightly short of reaching the 200-day MA level. However, this is set to change soon as it is a few percent shy of reaching the indicator’s price point of $302.76.

If the bulls continue to have a field day, KSM could break above this resistance line and make new support at $310 while wrestling to break above the $350 resistance line.

The relative strength index (RSI) currently points to an overbought zone of 73.95 which means more investors are looking to buy KSM.

Market analysts believe that KSM is set to continue its upward climb. According to Wallet Investor, KSM is expected to reach $516.127 by the close of 2021. Its five-year forecast puts KSM at $1710.550.

On its fundamentals, the Kusama network is slowly seeing a growing adoption.

In a recent release, the Kusama blockchain supported the installation of a blockchain-based augmented reality (AR) experience in Vancouver, Canada. According to the team, this project will be viewable on Android and iOS devices, and it is aptly named Voxel Bridge.

The 1,800 square meter art installation explores how public spaces can be constructed and leveraged in both physical and digital realities.

Aside from this, the Kusama blockchain is currently holding the auction of its parachain slots. So far, over five crypto protocols have secured a place in one of the crypto industry’s most-coveted platforms. Kusama will enable the rollout of the Polkadot parachain auctioning once it concludes its auction in the coming weeks.