Kusama price Up By 4.15% – Time To Buy KSM?
Kusama is one of the most exciting crypto protocols in the blockchain space. Serving as a testbed for the conservative Polkadot blockchain, Kusama has become a top destination for development teams looking to treat our new functionalities.
Even though Kusama has been around for some time now, many people are still unaware of its importance to the blockchain ecosystem.
This article dives deep into Kusama’s value proposition and considers if this might be an ideal time to buy KSM.
Kusama: Testbed For Polkadot Blockchain
Kusama and Polkadot share a few similarities as both blockchain platforms enable private and public blockchains to communicate in a trustless manner.
However, a few key differences see them operate on vastly different universes even though they are interoperable.
First is that Kusama is a forerunner to the Polkadot network. It was launched in 2019 by former Ethereum co-founder and CTO Dr. Gavin Wood, while Polkadot came into existence a year later.
Kusama is also in its intended use. It is a decentralized blockchain network that enables developers to experiment and test decentralized applications (dapps) before launching on the Polkadot network. In essence, it is a testbed.
Another major difference is that Kusama is way faster than the more conservative Polkadot as it is a fast-paced development environment.
Development teams looking to scale new functionalities usually turn to the Kusama network.
This has earned the Kusama network the sobriquet ‘wild cousin’ of Polkadot, given the platform’s off-hand approach towards the governance of activities on its protocol.
However, Kusama is very similar to Polkadot in several ways. It also uses the same architectural design with the Relay Chain serving as the heart of the blockchain platform.
It also uses parachains, which are blockchain platforms attached to the Kusama network but free to host separate tokens.
Kusama uses the KSM token for governance, and currently, the canary network is underlying a parachain auction exercise.
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KSM price Struggling Against Market Volatility
KSM is a top digital token with over $1.7 billion in market cap. It currently occupies the 55th position on the most valuable crypto chart. However, it is still considered a small-cap crypto-asset which means its price action is tied to Bitcoin price movement.
This has seen KSM rise and then dip along with the Bitcoin price flows. 2021 has been a great year for KSM, and it has more than tripled its initial entry price of $69.1 on Jan 1.
KSM rode on the March crypto wave and shot to $540.61. It dipped to $450 on Apr 2 but retested this price action scaling to an all-time high (ATH) of $592.69 on May 18.
It caught some tailwind surging to $236.69 on Jul 7 but soon plummeted to $148.85 two weeks later. However, its bullish momentum was cut short after that, with KSM dipping to $172.20 a month later. KSM has since rallied since hitting a six-month bottom and currently trades at $205.11, up 4.15% in the last 24 hours.
This rally has seen several investors want to buy KSM, given the unavailability of the digital token in circulation.
KSM Technical And Fundamental Analysis
KSM’s market appeal is on display on the trading chart. The digital asset is trading above the 20-day moving average (MA) support at $185.15 and may create a support level at its current price. Its relative strength index (RSI) is also something to look out for as it is above the oversold level at 53.86.
This could be a great time to buy KSM to rise with the market.
Kusama blockchain has become the hub for some leading decentralized finance (DeFi) protocols in the crypto space. Its parachain auction, which is presently ongoing, has listed five DeFi projects with more expected to join in the coming weeks.
In addition, Kusama is currently building a non-fungible token (NFT) chain called Unique Network targeted towards climate change.
Its growing use case has seen market analysts predict that KSM will double its present value by year’s end. According to Wallet Investor, 1 KSM will likely trade for $528.628.
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