Should I buy Kusama (KSM) in June?

crypto market’s recent performance

The interesting part about Kusama KSM/USD is the fact that it was actually developed by the same team that developed Polkadot, a company that goes by the name Parity Technologies.

Kusama stands out from other blockchain platforms as it is predominantly built for developers that want to launch ambitious projects at a fast pace in terms of development.

That being said, it is built on a multichain- heterogeneously-sharded design that uses nominated proof-of-stake (NPoS) as its consensus system. 

Kusama was mainly funded by grants from the Web3 Foundation which was launched to help technologies as well as applications in the fields of decentralized web software protocols. 

Should you buy KSM?

Through a report by BTCManager on May 31, Karura (KAR), which is the DeFi hub of Kusama, released details about its parachain auction and is offering participants 12 KAR tokens for every KSM token they contribute. Here, we saw it jump from $274 on May 29 to $335 on May 31.

On June 2, Kusama hit a significant milestone as the first Parachain Auction nears launch. At this point, it got to $464 in value, where it increased from $359 on June 1.

Kusama made an announcement on Twitter which stated that the network council has passed a vote to upgrade “Shell” to “Statemine”. They also made it the network’s first live as well as fully functional parachain. The primary function of a shell parachain is to test the functionality of the Kusama parachain system. With this upgrade, it will be able to support a wide range of functions, such as minting fungible and non-fungible tokens.

Since the ecosystem is now beginning to shape up, KSM owners should have an exciting road ahead. This is due to the fact that, after a successful Statemine parachain upgrade, people and developers will see it as a green light to develop more projects on Kusama and start making preparations to conduct their crowd loan activities.

As of June 8, KSM is worth $376 but we would prefer to recommend buying at a lower price. Taking a look at the chart shows KSM rebounded on two separate occasions near $300 and we would expect this support level to hold up again if we see any weakness. 

A significant drop below the $300 level would indicate the support levels failed to hold and we could see further downside.

Investing in an experimental blockchain

After the launch of the first Parachain and a successful upgrade, a lot of project developers will see it as a signal to potentially launch projects on Kusama due to its experimental nature. 

This is due to the fact that Parachains in Kusama is parallelizable chains, and they are connected to a central Relay chain. This chain has validators that validate the transactions and blocks to provide security to the network. It uses sharding which means that the blockchain can be divided into smaller shards, and uses open governance.

Furthermore, the KSM token is the native cryptocurrency of Kusama and it helps maintain and operate the network. So, as more projects move to Kusama, more tokens will be required to maintain and operate it, and with this increased demand, the price will hopefully rise.

The post Should I buy Kusama (KSM) in June? appeared first on Invezz.

Publication date: 
06/08/2021 - 21:47
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.