Kusama Up By 29.35% – Time To Buy Kusama Coin?
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Kusama (KSM) has proven to be a solid investment option in the past few months, thanks to its thriving Kusama blockchain. The project’s native token has rallied in the last 24 hours, and more uptrend is expected in the future. In this article, we will consider if now is the right time to buy KSM.
Kusama – The Testbed For Polkadot’s Projects
Launched in 2019 by Ethereum co-founder and CTO Dr. Gavin Wood, Kusama is the sister network of the popular Polkadot project. The Canary Network serves as a testbed for major developments before launching on the Polkadot blockchain. Kusama’s job is to point out problems, dangers, and vulnerabilities in the code developers write.
On Kusama, developers create and launch different protocols to get the community’s feedback. After this, the community then decides if the protocol is stable enough to move to Polkadot. However, Kusama has its quirks. The network is an unaudited version of the Polkadot blockchain platform. For some, this setup is a drawback despite the technology behind it.
In terms of tech, Kusama has a separate operational protocol to Polkadot. The platform uses an improved version of the energy-efficient proof-of-stake (PoS) consensus algorithm, called the nominated proof-of-stake (NPoS). This protocol only allows a limited number of validator nodes to verify transactions.
The scalable network runs independent governance separate from Polkadot as it operates like a decentralized autonomous organization (DAO). Kusama’s native token plays several key roles in the ecosystem. This includes voting, governance, and settling transaction fees on the Kusama platform.
KSM to the Moon
The Kusama token has had a stellar year so far. KSM shot up from its start price of $69.5 in January 2021. The KSM coin surged to an all-time high of $594.44 on May 14 before the prices crashed following the market crash in May.
Following the downturn, KSM tumbled as low as $262.97 by the end of May.
The asset began to rally again in June and hit $473.07 on June 10. However, the crypto could not retain this price action and slumped hard to $175.49 on June 25. KSM began to rally again, which led it to climb to a price of $224.83 on July 6. The asset continued to move up steadily after a series of sharp lows. By August 16, KSM had reached the $301 mark.
The current price movement is a signal for savvy investors to get in and buy Kusama. The asset trades at $377.70 and is up 29.65% in the last 24 hours. KSM ranks at the 44th spot of the top valued cryptocurrencies with a market cap of $3 billion.
KSM Technical And Fundamental Analysis
On the trading chart, KSM’s fundamentals are strong. The asset’s relative strength index (RSI) is currently at 70.10, which depicts that KSM is trading in the overbought region. This indicates that several investors are keen to buy KSM.
The moving average (MA) indicator shows that KSM is currently trading above the 200-day MA support at $319.90, signaling bullish momentum.
In the short-term, KSM is also on a tear as the digital asset is trading above the 20-day MA support price of $304.10 which signals a massive bullish run.
The last few months have seen the Kusama blockchain become the hub for some leading decentralized finance (DeFi) protocols in the crypto space. The Kusama council recently announced plans to schedule five more auctions next month following the success of its debut parachain auctions in June this year.
The auctions are slated for multiple dates in September 2021. According to the announcement, the initial bidding period for the first round on September 1 will last for two days, followed by a five-day ending period.
Earlier this month, Canadian public art exhibition organization Vancouver Biennale disclosed it was working on an art installation called Voxel bridge. The bridge is a digital and visual representation of the Kusama network.
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