The Kusama price popped on Wednesday as other altcoins rose. The KSM price jumped by more than 7% to $241, bringing its total market capitalization to more than $2 billion. It is the 48th biggest cryptocurrency in the world and is sandwiched between The Graph and Terra USD. Similarly, the Polkadot price has jumped by more than 16%, bringing its total market value to more than $16 billion.
Kusama is a blockchain project that was developed in 2019 by the same developers who built Polkadot. In its introduction, Gavin Wood described it as an experimental project that will serve as a proving ground for Polkadot. He said:
“It is an early, highly experimental version of Polkadot presenting real economic conditions. It is not economically centralised and there will be no central kill switch. Kusama will exist as long as its community maintains it.”
Kusama has had strong growth since its launch. Today, it has become a billion-dollar project that has made some major milestones. The most recent milestone was the launch of parachain auctions in June.
Parachains are blockchains connected to and secured by the Polkadot or Kusama Relay Chain. The first parachain launched on the network was Statemint, which can deploy generic assets and NFTs. The winner of this auction was Karura, a DeFi hub for Acala’s sister network.
The Kusama price is rising today for three main reasons. First, the bond market shows that investors are no longer afraid of inflation. This is evidenced by the fact that the 10-year yield has dropped to the lowest level in more than four months. Second, Bitcoin has stabilized above $34,000, sending signals that its price has stabilized.
Finally, there is optimism about the upcoming London hard fork and its impact on Ethereum. In most times, altcoins tend to have a close correlation with Bitcoin and Ethereum.
Kusama price prediction
The daily chart shows that the Kusama price has been under pressure recently. It has already declined by more than 62% from its all-time high. Also, it appears to have formed a double-top pattern at $537. Its neckline was at around $262. In price action, a double or triple-top pattern is usually a bearish signal.
The price is also below the 50-day and 25-day exponential moving averages (EMA). Therefore, the recent bounce could be a part of a break and retest approach, meaning that the Kusama price remains being bearish. The bearish view will be invalidated if it moves above $300.