Kusuma (KSM) Price Hits an All-Time High as Parachain Auctions Begin To Take Shape

An experimental blockchain platform and Polkadot platform’s sister chain, Kusama (KSM), is witnessing a major rally this week even as the overall cryptocurrency market is witnessing bearish conditions. Kusuma platform, designed to provide an interoperable and scalable framework for developers, has rallied 55% to a new all-time high (ATH) on May 15, 2021, to US$614.64.

At press time, the KSM price was hovering around US$602.53. Currently, the market cap of Kusuma is US$5,129,218,519. There are 3 major reasons for the price appreciation of KSM:

  1. The upcoming launch of para chain auctions
  2. The interoperability of Kusuma with other networks improved significantly due to the recent integrations.
  3. Increased opportunities of staking or locking up KSM for earning a yield.

Of all the above mentioned 3 reasons, the most important one is the first one. The Kusuma project announced on May 12 about their most recent upgrade proposal, which was was approved by the council and is now a public referendum.

Twitter handle of Kusuma tweeted:

“BREAKING: Upgrade v0.9.1 passed council and is now a public referendum, fast-tracked to end Friday ~12pm CEST. This upgrade includes the code for parachains, auctions and crowdloans, reduces the min. vested transfer by 100x and reduces fees/deposits by 50x.”

This announcement provided the token holders a 3-day window from May 12, 2021, to May 14, 2021. During this time, they can vote for the different parachains, crowd loans, and auctions that they want to be used on the network of Kusuma. Demand for the KSM token skyrocketed immediately as the tokens are also needed to be able to participate in voting.

On April 23, 2021, it was announced that Chainlink awarded a grant to ChainSafe Systems for helping support expansion for Kusama on the Chainlink Oracle Pallet.

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Chainlink’s official twitter handle tweeted:

“We’re excited to award a grant to @ChainSafeth for the expansion, improvement, & ongoing support of the #Chainlink Oracle Pallet, enabling devs to easily build hybrid smart contracts on @Polkadot & @kusamanetwork parachains as well as @substrate_io chains.”

This opened up prospects of building smart contracts on DOT and KSM parachains and other substrate chains, which will enhance their interoperability capability significantly. This also contributed to the rise in the price of KSM in the last 30-days.

The staking and yield opportunities to token holders improved significantly. Staking reward data shows that the average rate of return for staking and delegating KSM on the network is 13.72%. Running a validator node earns 14.72%.

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Projects such as Karura have elected to conduct a crowd loan, which is a part of the parachain auction process. This possess requires community supporters to bond their KSM with that protocol for the duration of the parachain lease in return for the native token of the parachain.

“Acaca — DeFi Hub of Polkadot” account tweeted:

“Crowdloans and parachain auctions on @KusamaNetwork will start any day now!

We put together an overview of @KaruraNetwork, the DeFi Hub of Kusama, and the approach we’re taking with the community to win the first parachain slot on Kusama”

The requirements for obtaining a parachain lease for a specified period of time can be met with the help of a crowd loan. The best part is that all the Kusuma tokens are returned to the contributors after the lease is up. The community members are awarded the native token of the parachain in for locking their KSM tokens for an extended period of time. Cryptocurrency projects have devised a new way of fundraising and it is the crowd loan model.

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