Kusama price is on a tear. Crypto protocols have shown remarkable growth since the year began, and one such crypto protocol is certainly the Kusama network. Following a Tuesday announcement from principal founder Gavin Wood that parachain auctions would now be supported on the test network, KSM price rose by 17.50% and now trades at $508.84 on the 24hr trading chart.
KSM Parachain Auctions Good News For Polkadot
They have been a long time coming, and their launch has been shifted several times by the development team. Wood’s announcement that parachain auctions would now be supported on Polkadot’s canary network Kusama made many DOT holders breathe a sigh of relief, given the broader crypto market has seen negative price action in the last few weeks.
Kusama commencing parachain auctions on its network is good news for Polkadot as the success of the auctions would spill over into the twin network.
Parachains are meant to host decentralized applications (dApps) that can seamlessly interoperate with one another by tapping into Polkadot’s relay chain architecture.
Race for the 100 Polkadot Parachains is On
Given that there is only space for 100 parachains, interested dApps have to bid for available slots hence the auction. To qualify for the auction, projects need to stake the protocol’s native tokens KSM or DOT.
To increase their chances of succeeding, crypto protocols turn to their supporters to raise loans in parachain loan offers. This would see them bond their KSM tokens for some time. Successful projects will reward their contributors with native parachain tokens.
Top crypto exchange Kraken is already seeing a market opportunity here and has announced that it would be supporting Parachain Auctions in a press release. According to the Bitcoin exchange, Kraken users will be able in Kusama’s Parachain Auctions without leaving the exchange.
Additionally, private venture capital firm Master Ventures recently announced a $30 million Polkadot VC Fund. According to the VC firm, the fund is meant to support crypto projects looking to secure a parachain slot on the Polkadot Relay Chain.
KSM Price Surges as Bulls Returns
KSM seems to be taking everything in strides. At press time, KSM price rose to $514.41, with more uptrend projected by the 200-day moving average (MA) support. The Commodity Channel Index (CCI) confirms this bullish trend with a 161.69, indicating the bulls have come into the market.
The Relative Strength Index (RSI) shows 60.04, indicating more KSM price increase is likely. The directional movement index (DMI) is at 23.74, indicating a growth trajectory to the upside. At the same time, the moving average convergence and divergence (MACD) is bullish.
However, for the short-term, we turn to the 20-day MA to show us what we might expect before the close of trade. KSM price surged beyond the indicator detailing that it may not fall anytime soon.
Where to Buy Kusama
As the price of Kusama rises and investors expect further jumps, savvy investors are on the lookout for trusted platforms to buy Kusama. Here are some trading platforms to use:
While eToro started as a stockbroker app, it has grown into a top crypto trading service as well. The platform provides access to some of the most popular assets, with Kusama rumoured to be listing soon. As a trader on eToro, you’ll enjoy zero-commission trading, a secure crypto wallet, and several funding options.
Binance is the world’s largest cryptocurrency exchange. It has one of the lowest fee structure in the market and the liquidity is quite high too.
Looking to buy or trade Crypto now? Invest at eToro!
75% of retail investor accounts lose money when trading CFDs with this provider