Price Predictions

Kusama(KSM)/USDT Price Prediction: 12 February 2022

Kusama(KSM) Price Prediction

Overview

It is a common practice to experiment with any new thing on a prototype rather than the main network to check for flaws and any improvements. Kusama is one such network which is a canary network for Polkadot. Here developers experiment and test their new blockchains or any applications before releasing them on the main network. Kusama is not less than any Sandbox for the developers do not wish to directly launch their upgrades on Polkadot which may impact heavily the native token DOT. 

Despite the network being designed to overlook the scalability and the interoperability of the Polkadot network, Kusama has scripted its own identity. Moreover, its native token KSM is registered among the biggest gainers of the 2020 DeFi boom which spiked more than 1700% to hit levels beyond $600. And hence the asset was also within the top 50 crypto assets as per the market capitalization. 

Woefully, the beginning of the year 2022 was extremely bearish for most of the crypto assets and Kusama is also among them. The downtrend which began in November 2021 doesn’t seem to have eased out as of now. But will KSM price slash below $100 amid the current downtrend or will flip with a strong bullish momentum? Let’s check it out!

Introduction to Kusama(KSM)-In Brief

Kusama was founded in 2018 as a canary network by Gavin Wood, the Polkadot founder and a former CTO of Ethereum and the founder of Web3 Foundation. Kusama being a canary network resembles the Polkadot network offering a similar design and functionalities. Yet the two being independent chains, have different priorities. 

While Polkadot is more focused on governance ensuring stability, security, Kusama on the other hand offers lower economic and technical barriers for entry. And hence the projects on Kusma tend to become riskier than Polkadot. On the other hand, Kusama also follows a similar working model as Polkadot with two types of blockchains, Rely Chain and Parachain. 

The native token of Kusama, KSM as mentioned before turned out to be among the highest gainers of the 2020 DeFi boom. The asset unexpectedly spiked as high as $625 from around $68 in a very short time frame and hence established its strong presence in the crypto space. However, like many other cryptos, the KSM price is also sinking and is also feared to lose more value in the upcoming days. 

How Does Kusama Work?

Despite being the canary network of Polkadot, Kusama is much more independent and offers additional features as it welcomes new features and experiments before they are rolled out on Polkadot.  As mentioned before, Kusama also works on the Polkadot working model and allows the creation of two types of blockchains, Relay chain and Parachain. 

The Relay Chain

It is the main chain where validators are located who confirm the transactions and add them to the blockchain. The relay chain has minimal functionality and is mainly responsible for coordinating with the system. The chain works on a slightly improvised PoS mechanism called the nominated Proof-of-Stake which allows anyone to stake & lock KSM in a special contract to perform one or more following roles,

Validators:- These are the actors who validate the transactions and also take part in consensus by voting on the proposed changes

Nominators:- They secure the network by selecting the reliable validators

Parachains

On the other hand, Parachains are custom blockchains that utilize the computing resources of the relay chain. It allows the users to run separate layer-1 blockchains which possess different architectures, features and use cases depending on the project. 

Similar to the Polkadot Parachain auctions, here also the Parachains are open for auctions where the projects bid to obtain the parachains on the respective networks. 

How is Kusama Different From Polkadot?

Nevertheless, Kusama is termed as the ‘Canary Network for Polkadot’ yet both are independent of themselves possessing their functionalities having their priorities. Kusama is wild and fast, meant for risky experiments whereas Polkadot is more conservative focusing more on stability. 

Polkadot  Kusama
High Stability and Security Easy entry with low barriers and low bond requirements for validators & parachains
Conservative governance & upgrades with high validator rewards Low slashing penalties with fast iteration using the latest technology
Focuses on enterprise and B2B applications It’s an early start-up experimenting with new ideas
An extreme secured environment that offers bank-like security and stability The applications do not offer an extreme secured environment 
Its an upgrade path for early-stage applications It is a pre-production environment for Polkadot 
The governance process is pretty low which takes about a month While here in Kusama it just a matter of few days

Will KSM price hit $ in 2022?

The KSM price which roared like a giant throughout the year 2021 seems to be in a denial stage since the beginning of 2022. The price is finding not enough boost to gear up and flip the downtrend. Moreover, every attempt of the asset to rebound from its lows is currently resulting in the discovery of yet another low. 

After shedding all the gains of the 2021 bull run, it’s extremely difficult for the asset to regain the bullish momentum and propel towards its previous levels. And hence with the reduced pace and a decrease in the strength, the KSM price may hover around $550 to $600 to end the 2022 yearly trade. 

To anyone’s surprise if 2021 like the bull run is reignited, then the possibilities of the asset roaring high and surging beyond a 4-digit figure are pretty high. Yet on the contrary, if the bear takes back control, the KSM price may be restricted below $500 and constantly consolidate with minor fluctuations till the end of 2022 trade. 

Factors impacting KSM Price Today!

The Canary Network

Kusama uses Polkadot’s base code and hence the developers have almost the same building experience as Polkadot. Once built on Kusama the applications or chains can be easily moved on Polkadot. 

Kusama Governance

Governance is managed by 3 groups: the Referendum Chamber which submits the proposals and votes. The council has 13 Kusama holders as members responsible for electing the technical committee. And the Technical Committee which comprises a development team who work on the implementation of the proposals voted. 

User Roles on Kusama

The users here on Kusama have the opportunity to either be Builders or Network maintainers.  Being a builder, the user can deploy the applications on Kusama before Polkadot and a Network Maintainer can interact with all features of the network. The KSM holders usually have the privilege to be network maintainers which include staking, governance, parachain auctions, transfers, etc. 

Kusama Treasury

The treasury consists of the funds from transaction fees, lost deposits, failed bets, penalties, etc. This is used for the development of the Kusama network. 

Kusama Crowd Loans

Crowd loans work similar to a fund-raising but in the form of a loan for a duration of a parachain. The native token KSM is kept as collateral by the teams who wish to procure a part of the entire sum required for bidding and obtaining a parachain in an auction

How & Where to Buy Kusama(KSM)

Investing in Kusama(KSM) or Polkadot(DOT) or any of your desired tokens is extremely simple on CoinDCX. All you need to do is just download CoinDCX Pro App on your smartphone and enter the required details. The platform verifies your details within minutes and once done you become a proud customer of CoinDCX. Now you need to just fund your wallet and start trading. Simple!!


Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information, or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment, or tax advice by the reader. The calculations, data, risk-return formulations, performance, or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors, or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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