Major protocol updates play a big role in the price of cryptocurrency projects as community members and investors get excited about the new features, and traders rush to “buy the excitement and sell the news”.
A log where the price has soared to new highs this week despite bearish conditions affecting the entire market Kusama (KSM), an experimental blockchain platform and a sister chain of the platform Speckle. Kusama is designed to provide developers with an interoperable and scalable framework.
Data from Cointelegraph Markets Pro Y. TradingView show that after falling to a minimum of USD 378 1
0th of May, The Kusama price rose 55% to a new all-time high of $ 591.55 thanks a Record trading volume of $ 1.568 billion in 24 hours.
The three reasons for KSM’s recent price hike include: the upcoming launch of parachain auctions (sidechains), recent integrations that have helped improve Kusama’s interoperability with other networks, and improved ways to set or lock KSM tokens for performance.
The launch of the parachutes is getting closer
The most significant event for Kusama occurred on May 12th cWhen the project announced that the latest proposal for improvement has been approved by the Council and is now a public referendum.
Short message: The v0.9.1 update has been approved by the council and is now a public referendum that will end on Friday (12pm CEST) This update contains the code for parachutes, auctions and group loans, reduces the set minimum transfer by 100 times and the fees / deposits by 50 times.
â € œCâ € ™ câ € ™ câ € “â €“ â € “›.
– Kusama (@kusamanetwork) May 12, 2021
Short message: The v0.9.1 update has been approved by the council and is now a public referendum that will end on Friday (12pm CEST). This update contains the code for parachutes, auctions and group loans, reduces the set minimum transfer by 100 times and the fees / deposits by 50 times.
This gave token holders a three day window between May 12th and 14th. to vote for the various parachutes, group loans and auctions you would like to see on the Kusama network.
Since KSM tokens are required to participate in the vote, demand for the token increased immediately after the announcement. and continues to rise on May 14th despite the general crash in the cryptocurrency market.
Cointelegraph Markets Pro’s VORTECS ™ data began to see an optimistic outlook for KSM on May 11, ahead of the recent price hike and prior to the approval of the v0.9.1 update.
The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the graphic above, VORTECS ™ fluctuated in and out of the green zone for the past week before rising to a high of 70 on May 11th. Around the same time that KSM price began its journey to a new all-time high for the next 32 hours.
The interoperability integration creates a spark
A second source of KSM’s price growth over the past month was the April 23rd announcement that Chainlink will grant ChainSafe Systems a grant to expand support for Kusama to Chainlink Oracle Pallet.
We’re excited to grant @ChainSafeth a grant to expand, improve, and continue to support Oracle’s #Chainlink suite, which allows developers to easily create hybrid smart contracts for @ Polkadot and @ kusamanetwork parachutes, as well as @ substrate_io chains . https://t.co/wdXO6SwRKP
– Chainlink – Official Channel (@chainlink) April 23, 2021
We are pleased to provide Chain Safeth with a grant to expand, improve, and continue to support the Oracle #Chainlink suite, which enables developers to easily create hybrid smart contracts for Polkadot and Kusama parachutes, as well as substrate-based chains.
As you can read in the Tuir The expanded support enables developers to create hybrid smart contracts for DOT and KSM parachutes along with other substrate chains. Significant improvement in interoperability capacity.
Since one of the originally mentioned goals of the Polkadot network is the improved interoperability across all blockchain networks, this was able to assure the community members that by integrating the oracle platform, which is the most reliable and is used in the crypto ecosystem, significant action has been taken towards this goal.
New ways to stake out and generate income
Another reason for the demand for KSM are the attractive performance options for token holders who want to block their KSM tokens in the network or on new parachutes.
Staking out reward data shows this The average rate of performance of the KSM stakeout and delegation on the network is 13.72%, while the execution of a validation node is 14.72%.
As part of the parachute auction process Projects like Karura have decided to take out a collective loan where community members tie their KSM tokens to this protocol for the duration of the parachute lease in exchange for the parachutist’s native token.
Group rental and parachute auctions on @KusamaNetwork start anytime!
We’ve put together an overview of @KaruraNetwork, the Kusama DeFi hub, and the approach we’re taking with the community to win the first Parachain slot in Kusama. https://t.co/r1zrW5KOK9
– Acala – DeFi Hub by Polkadot (@AcalaNetwork) May 13, 2021
Kusama Group Lending and Parachain Auctions start anytime!
We have put together an overview of Karura, the Kusama DeFi center and the approach we are taking with the community to win the first Parachain slot in Kusama.
The collective loan allows the project to meet the requirements for obtaining a parachain lease for a period of time, and all KSM tokens will be returned to the contributors after the lease is in place.
In return for blocking their tokens for a longer period of time, community members will be rewarded with the native token of the parachute in question. But they lose the ability to earn rewards for using KSM.
The crowdfunding model is an innovative new fundraising design for cryptocurrency projects that has delighted community members eager to get their favorite Kusuma-based tokens while still retaining ownership of your KSM.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade movement is associated with risks. You must do your own research when making a decision.
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