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This article talks about the Kusama Polkadot project in the Polkadot ecosystem. We will explore and gather data to know the whereabouts of the Kusama (KSM) prices surge. More so, we will discuss why Kusama’s price increased drastically from $1 to $500. Here, we are keen to dissect why many people continue to raise questions about why the KSM token price keeps growing up all day.
For example, what is the Kusama Polkadots project? A brief summary, Kusama is a sister network to Polkadot. A well-known blockchain was created purposely for testing scalability and interoperability solutions. The Kusama Polkadot project grows a hot spot for early-stage blockchain projects ready to build on a Polkadot-like foundation. This is because of its innovative nature. Join me as I deeply explain in detail what Kusama is.
What is Kusama?
Kusama is a blockchain-based project. This means that all its crypto-related activities are based on blockchain. Created in 2019 by Dr. Gavin Wood. Aside from being the Co-Founder of the Kusama project, Wood is also a Web3 Foundation and Ethereum’s Co-Founder as well.
Nonetheless, the team behind Kusama is the same as that of the Polkadot’s. The team consists of well-known and industry-respected blockchain techies. In other words, the group gives faith to the Kusama Polkadot project.
As part of Kusama’s mission, it aims to create a fair and decentralized internet like many blockchain-based projects. At the same time, it is very similar to Polkadot. Commonly known as a “canary network” to Polkadot, Kusama protocol has the ability to form many blockchains into one network of Parachains.
In terms of similarity in blockchain, Kusama is still not totally the same as Polkadot as the latter is vast by extension. It utilizes a joint governance plan that prioritizes security and network safety.
Kusama basically stands as a test network for Polkadot. In other words, it is more fit for smaller-sized projects that are natively riskier.
Kusama Polkadot Project Achievement
Kusama is the most achieving crypto among the top 100 in the weekly timeframe. Prior, the Kusama native token KSM started trading followed by the DOT token at a price of $1.17 in December 2019.
Consequently, the KSM price fell slightly to $1.20 in 2020. After jumping between $1 and $1.20 for January and the start of February price began going higher.
After that, it remained rising firmly higher in mid-August, when it hit a level above $14. Then got off great in response to the launch of the Polkadot mainnet. As a result, Kusama’s price hit a huge all-time high of $621.71 on May 18.
Nevertheless, Kusama’s price went up by 22% during that time. Also, its daily trading volume has increased to 66%. That is to say, the Kusama Polkadot project’s sharp increase is probably due to the Polkadot Parachain launch on Kusama.
Moreover, investors can lend their KSM tokens to projects. For example, those who want a space to form one of Kusama’s limited Parachains. Likewise, it uses a bicycle analogy. They are like separate spokes joined to the Kusama wheel.
Notably, the Kusama Polkadot project needs to gather as many KSM tokens as possible to win the bid. After that, the auction ends at a randomly selected moment. Hence, the associates have to make higher bids early on to win. Furthermore, this may result in KSM coins being paid up in massive amounts. As a result, lack of tokens on exchanges and a rising KSM price.
What is Parachain
Parachains are the diverse individual layer-1 blockchains that run parallel in the Polkadot ecosystem. Especially on both the Polkadot and Kusama Networks.
In particular, Parachain connects securely to the central Relay Chain. As a result, Parachains share and also profit from the security, scalability, interoperability, and governance of Polkadot.
In addition, Polkadot’s cross-chain composability allows transmission of any assets or data between Parachains. By doing this, it opens up a host of new use cases and applications. Parachains can also connect to external chains such as Bitcoin and Ethereum using cross-network bridges.
Lastly, Polkadot comprises a layer-0 multi-chain network. In other words, the central Relay Chain provides layer-0 security and interoperability for about 100 layer-1 blockchains connected as Parachains.
How does the Kusama Parachain Work?
Parachains are parallel chains that run on the main Kusama Relay chain. For example, imagine a plastic comb (as Kusama Relay chain) with a long row of thinner, plastic teeth (Kusama Parachains).
In other words, these multiple chains often interact with each other. Meanwhile, it blocks the main Relay chain from becoming congested. It does this by handling every activity on the network. Besides, this design will help Polkadot and Kusama scale into the future. However, it tells why many developers try to create on the networks.
Meanwhile, the Kusama Polkadot project gives only a limited number of Parachain. To clarify, locking up a vast amount of KSM tokens for up to two years to secure a slot. Indeed, after the chosen period, it distributes the block rewards.
At the start, they will pick only a few projects to build on the Parachains. After that, the bid starts with the highest amount of KSM in the auction that will pass just before the network goes live.
Most importantly, all competing teams for a slot will not see how much other teams are bidding. Therefore, the auction will end at a random moment.
What is more, the smaller projects that can’t stand to inhabit a whole Parachain can also rent a Kusama Parathread. To explain, Parathread is a Parachain that is shared into small chains or threads to share the cost. In short, it’s like renting a room inside a flat rather than paying to rent the entire flat itself.
Promising Kusama Polkadot Project
Kusama has a proof-of-stake algorithm. In other words, it incentivizes KMS holders to stake it for rewards. Consequently, staking on the Kusama Polkadot project has become a popular method of making passive income. At the moment, staking KSM yields an annualized return of around 14.26%. However, it is subject to change depending on a type of market factor.
Notably, if exactly 50% of all KSM in circulation was staked, validators on the Kusama network get 100% of the block rewards. Otherwise, they will put on the part of the KSM to raise the Kusama Treasury.
As mentioned already, Kusama experienced explosive growth in 2020 alongside a price surge for Polkadot’s DOT. KSM native coins grew from a low of around $1.50 to over $70 at the end of the year. Besides, it served broadly from the launch of Polkadot’s mainnet.
At the time of writing, it holds 51st by total market capitalization, according to Coinmarketcap. In addition, the current price is $198.62 with a 24-hour volume of $122,834,307.
Furthermore, the total supply of KSM is 9,651,217, but the maximum supply is not shown. Instead, Kusama has a 10% yearly inflation rate, and detracting investors keen on coins with capped maximum supply.
Kusama Price Analysis
The market view for the Kusama Polkadot project is bullish. Moreover, out of the twenty-six technical indicators, fifteen are giving out a signal of buy. However, ten shows in a neutral state and only one indicator gives out a sell signal. Overall, the oscillators are neutral. At the same time, the move means a strong uptrend.
On the other hand, a trader has identified Kusama in an ascending channel formation. KSM met the channel’s lower end amidst the market crash but now entered a safe zone. Hence, the Kusama Polkadot project is nearing a breakout from the area, which will prove the uptrend.
However, Kusama will stand strong resistance at $621.71 on May 18 – a level it has faced multiple denials. But, after reaching the ATH last month, KSM feels a huge drop. At the time of writing, the Kasuma value is $198.62 with a 24-hour volume of $122,254,777.16. But, in the long-term window, KSM is expected to climb once again.
To know more about the Kusama Polkadot project’s future price, you can also read the Kusama Price Prediction 2021.
Why Is the Kusama Polkadot Project Different?
The Kusama Polkadot project has grown into a great place for test protocols — something many other blockchains are not expressly keen on developing. Hence, the Kusama Polkadot project features smart contract support and highly scalable chains and holds both private and public blockchains. Plus, the sheer type of applications that can form on the network is staggering.
In theory and practice, developers can create anything from oracles to social networks on Kusama — and anything within. KSM is upgradable without the need for a hard fork. Special thanks to its proof-of-stake consensus mechanism doing a variant called nominated proof-of-stake, or NPoS.
As a result, anyone holding KSM coins or Parachain tokens may vote with them on governance proposals. So, this builds expedited network upgrades compared to the slow Polkadot.
As a cousin chain to Polkadot, we see great potential in Kusama. Not only because it is the same ideal mind that helped lead us to Ethereum and then went on to form Polkadot. But it also deals with the strong development team behind Polkadot and the innovative and forward-thinking code base of Polkadot.
However, there might even be reasons to like Kusama even more than Polkadot. For example, it is meant to be a springboard for projects to improve before driving on Polkadot. After that, there could be many projects to choose from in Kusama. In addition, growth is faster and more innovative. As a result, the costs for a Parachain are supposed to be far smaller on Kusama.
Apart from this, there is a link coming for Bitcoin, which proposes full interoperability just around the corner. Lastly, besides being a bigger cousin like Polkadot, there’s just so much to get inspired about Kusama. That is to say, the growing adoption and the growth of areas like DeFi are a perfect match for these projects. After that, this could be the next token to catapult to the moon or further.
Kusama is a scalable and multichain network with substrates and experiments including new features before being deployed on Polkadot.
Kusama Parachain joins individual blockchains with diverse designs together to allow them to share.
There are several user roles in Kusama; there are builders, nominators, innovators, collators, and governance actors.
Users can join the Kusama network if they hold the native coin, KSM.
Kusama comprises the newest and efficient technology that is being introduced by the Web 3.0 Foundation and Parity technologies. As a result, it allows developers to utilize the provided tech instruments to launch their blockchain with a fast iteration and well-audited process before deploying them on Polkadot. Above all, it offers the best of a Parachain and a Rely chain operation.
The difference between the Polkadot network and the Kusama network is its various benefits. Moreso, their different use cases act as parts that define them.
In order to get KSM tokens, people need to engage with the operations supported on the network. In addition, people seeking grants from the Web 3.0 Foundation can also get the KSM tokens.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.