KSM hit a fresh all-time high as investors hurried to buy new stakes ahead of the upcoming parachain auctions.
Major protocol upgrades are among the most potent causes of price movement for cryptocurrency projects. This is as investors rush in to buy the rumor and sell the news. Despite the market’s overall bearishness, Kusama (KSM), an innovative blockchain platform and Polkadot’s sister chain, have seen its price surge this week. Kusama is a scalable and interoperable framework for developers.
After hitting a low of $378 on Monday, Kusama recovered 55% to a new all-time high of $591.55 on Friday. This was according to Cointelegraph Markets Pro and TradingView data. The forthcoming launch of parachain auctions, recent integrations that improved Kusama’s interoperability with other networks, and expanded chances to stake or lock up KSM have all contributed to the current price spike.
The Launch of Parachains
On Wednesday, the project stated that the board authorized the latest upgrading proposal and had become a public referendum. It gave token owners a three-day window from Wednesday and Friday to start voting for their favorite parachains, crowd loans, and auctions.
Because KSM tokens are necessary to vote, interest for the token soared immediately after the official statement. Furthermore, it kept rising on Friday despite a general cryptocurrency market decline.
Bullish sentiment for KSM began to emerge on Tuesday, before the latest price increase and the announcement of update v0.9.1.
The VORTECSTM Score derives from a collection of data sources. This also includes market sentiment, trade volume, recent price changes, and Twitter activity.
The VORTECSTM Score fluctuated over the last week before hitting 70 on Tuesday. Moreover, it was around the same time the price of KSM started to break to a new all-time high.
Interoperability Sparks
On April 23, Chainlink announced a grant to ChainSafe Systems to help enhance support for Kusama on the Chainlink Oracle Pallet. The tweet shows that developers can now create hybrid smart contracts on Polkadot and Kusama parachains. They can also create on other substrate chains, significantly increasing interoperability.
With the most trusted and popular oracle system in the cryptocurrency ecosystem, this development reassured community members that steps were taken to increase interoperability.
New Stake and Yield Opportunities
Token holders willing to wager their KSM tokens on the network or new parachains earn a significant income. Staking and delegating KSM earns 13.72 percent on the network, whereas maintaining a validator node earns 14.72 percent. In exchange for the parachain’s native coin, projects like Karura have chosen to perform a crowdlending.
The crowd loan lets the project secure a parachain lease for a set amount of time. After which, all KSM tokens are refunded to contributors. Community members receive the native token of the parachain in exchange for locking their tokens for a long time but lose the potential to earn KSM staking incentives.
The crowdlending model is an exciting new way for crypto businesses to raise funds while retaining control of their KSM.
