The Kusama blockchain is expected to play a pivotal role in the hotly contested Decentralized Funding (DeFi), and this could be a good time to buy KSM for a bargain.
Kusama: Polkadot pre-production factory
Kusama was founded in 2016 by former Ethereum co-founder and CTO Dr. Gavin Wood and is a public preproduction environment for the Polkadot Network. It enables developers to experiment and test new blockchains or applications before launching them on the network.
This allows Kusama to act as a sandbox for developers to test early versions of their projects. Also, official Polkadot updates are carried out on the Kusama Network before they are released.
Development teams that want to test and run any update of their protocol can use the speed of Kusama to accelerate their developments. It offers more flexibility and looser rules than its sister network and less strict governance parameters.
However, Kusama is an advanced and unchecked version of the Polkadot version. It thus has the same architectural design as its younger version. It uses two basic blockchains – a mainnet called a relay chain and user-generated networks.
Kusama’s Relay Chain is the heart of the blockchain platform. Its job is to validate transactions in the network. Its user-generated network is known as parachain, which makes it possible to build and develop separate blockchains in the Kusama network while still leveraging its security. Parachains are customizable and are always auctioned every two years.
Like Polkadot, Kusama seeks to create an interoperable and scalable network for developers. It is built on a substrate.
KSM is the governance token for the Kusama network, and holders can vote on certain development and software upgrades for the network.
KSM: Break through the bear ranks
Kusama is the 51st most valuable cryptocurrency with a market capitalization of over $ 2.4 billion. The 24-hour trading volume is up 36.96%, which shows that investors are looking to buy KSM.
KSM had a roller coaster ride with several rallies and dips this year.
However, 2021 was his best year yet. Starting the year at $ 69.5, KSM began its rise into blockchain celebrities, breaking new records every week. It rose 60% from January to February and rose to $ 212.51 at the end of the month.
That bullish momentum continued into March when KSM hit a record high of $ 547.91 before the bears dropped the price.
However, it tested this price action twice in May before rising to an all-time high (ATH) of $ 592.69 on May 18.
This coincided with the start of the bear market when the token fell to $ 262.97 five days later. But the digital asset wasn’t ready yet, rising to $ 511.31 on June 9 before losing its balance.
This resulted in KSM experiencing its biggest slump, losing more than 50% as the bears continued to dictate market direction. It eventually found support at the target price of $ 148.85 and is slowly moving back up.
However, like several crypto protocols, KSM is heavily dependent on the price movement of BTC.
At press time, the cryptocurrency is trading at $ 285.07, up 20.44% over the past 24 hours.
This means that the upward trend in the leading digital asset recently shows that this could be an ideal opportunity to buy KSM.
KSM technical and fundamental analysis
Like its sister network, KSM has had a tailwind in the last few days.
The digital asset is trading above the 20-day moving average (MA) support price of $ 208.98. Its steady rise to the top shows that it is unlikely to fall anytime soon.
Looking at the long-term perspective, KSM is just below the 200-day employee level. This is about to change, however, as the indicator’s price point of $ 302.76 is missed by a few percent.
If the bulls continue to have a field day, KSM could break above that resistance line and hit new support at $ 310 as they struggle to break the $ 350 resistance line.
The Relative Strength Index (RSI) is currently pointing to an overbought area of 73.95, which means more investors are looking to buy KSM.
Market analysts assume that KSM will continue its upward trend. According to Wallet Investor, KSM is projected to hit $ 516.127 by the end of 2021. KSM’s five-year forecast is $ 1,710,550.
In its fundamentals, the Kusama network is slowly seeing a growing acceptance.
In a recently released version, 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 visible on Android and iOS devices and it is aptly named Voxel Bridge.
The 1,800 square meter art installation examines how public spaces can be constructed and used in both physical and digital realities.
That being said, the Kusama blockchain is currently hosting the auction of their Parachain slots. So far, more than five crypto protocols have secured a place in one of the most coveted platforms in the crypto industry. Kusama will enable the launch of the Polkadot Parachain auction as soon as the auction closes in the coming weeks.
About Jimmy Aki PRO INVESTOR
Jimmy is a UK-based economist with outstanding hands-on and face-to-face experience in macroeconomic financial analysis, forecasting and planning. He has refined his skills through a cross-continental activity as a financial analyst, which gives him intercultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him to peek under the global hood to see how the world works.