With the continued rise of blockchain, it's become quite clear that this young piece of tech needs some fine-tuning. Proof of concepts, alpha, and beta testing, as well as experimentations, are needed to test the limits of what blockchains can do, one software update at a time. That then is where we land at our Kusama price prediction, where they've built an open sandbox for all developers to test out their craziest ideas on a fully unhinged and powerful blockchain without any limits.
So-called “no's wild cousin,” Kusama is identical in shape and form to the aforementioned Ethereum rival, where dev teams can play around with software to their heart's content before being launched to the public on Polkadot. With a wide-open testing ground, Kusama is exactly what the blockchain world needs right now, a place where mad thinking can run free and wild. Read along with our Kusama price prediction, and you'll understand more as to why we're thrilled.
Kusama (KSM) Historical Price Analysis
The native cryptocurrency of the Kusama blockchain – or more specifically, a “multichain” – is the KSM token. Generally, KSM tokens can be used in one of four ways; bond to the network to help the Kusama multichain validate transactions, spend it for bidding on a parachain (a side-chain running in parallel to the main Kusama chain), pay for all transaction, and network-wise messaging fees, or to take part in the decentralized and permission-less community governance.
With major blockchains like Ethereum facing endless bouts of intense network congestion and volatile gas fees, more blockchain alternatives are being built. Polkadot, for instance, aims to be a highly scalable, extremely modular, and interoperable multichain that rivals Ethereum.
Although it's one of the younger blockchains on the market, Polkadot has garnered a lot of excitement, which has also translated into the growing adoption and popularity of its experimental sibling, Kusama.
Kusama's price spent much of 2019 and 2020 remaining stagnant, as proven with its all-time low price of $0.9143 on January 14th, 2020. However, following Polkadot's continued roll-out and increasing hype, the price of Kusama followed suit by growing stratospherically since late 2020. Early 2021 saw the price of KSM tokens pick up steam even farther, as its value has risen to a very impressive $566.74, which remains its all-time high to beat as of this Kusama price prediction.
Current Price, Market Cap, and Supply
At the time of writing this Kusama price prediction (April 21st, 2021), the price of one KSM token is worth around $354.57. Comparing it with its historical value then, this price marks a gigantic 38,678.14% gains from its all-time lows and just 37.44% under its all-time highs. One thing we've learned so far is that Kusama's KSM tokens are highly correlated to its fully polished sibling, Polkadot, with its own DOT tokens. The success of Polkadot will therefore mirror Kusama.
For the time being, the price of Kusama's KSM gives it a market capitalization value of $3,003,213,801, which makes Kusama the 46th-most valuable cryptocurrency. This is in contrast to Polkadot's No. 8 ranking. That is valued on top of a circulating supply of 8,470,098 KSM, with a total token cap of 10,000,000 KSM. However, this token cap is not fixed, as the total supply of KSM tokens will inflate at a rate of 10% every year.
Kusama Price Prediction Future Forecast (KSM)
For our Kusama price prediction article, we'll be using algorithmic models to see where their KSM tokens are going to land price-wise in the following weeks, months, and years. Naturally, there's only so much a computer model could calculate from and explain to us, but it's better than nothing. However, even stripping away all the technical factors and looking purely at Kusama's fundamentals, there are a few good reasons to be bullish here.
For a start, the primary blockchain for most decentralized applications and smart contracts, Ethereum, is hitting the limits of what it can achieve for the time being. There's been significant network growth that has resulted in a computational bottleneck, which is also causing fees to spiral out of control. While Ethereum is in the midst of fixing this with future updates, especially with the arrival of ETH2.0 sooner rather than later, some projects are already turning elsewhere.
They are either building their own blockchains or looking towards existing ecosystems such as Polkadot to migrate their platforms to. Polkadot's multichain – more than just a singular blockchain – promises benefits to be two-fold; it aims to raise the scalability barrier far higher than some rivaling chains such as Ethereum while also bringing seamless interoperability between chains. For those reasons alone, Kusama will likely mirror Polkadot's extremely promising future.
Kusama Price Prediction 2021
For the time being, the one thing that Kusama (as a virtue of being tied up with Polkadot) will be focused on most of all is the upcoming Parachain auctions. Parachains are essentially independent blockchains that are all built and powered by the larger Polkadot or Kusama multichain, linking them all together into a single network. Each Parachain can have its own tokens and economies and is crucial for the massive scalability argument made by Kusama (and Polkadot).
Kusama Price Prediction 2022
The aforementioned Parachain auctions are the first big hurdle that needs to be addressed as Kusama (and Polkadot) starts its gradual public roll-out. The first Parachain slot auctions are destined to happen through the remainder of 2021 following this Kusama price prediction. By 2022, we'd likely see most if not all of the Parachain slots fully operational. This will mark the make-or-break moment for Polkadot's multichain, which will be reflected in the value of both DOT and KSM.
Kusama Price Prediction 2025
There's no certain way to peer into 2025 and predict what's exactly going to happen, but we can make the assumption that blockchains will have grown rapidly by now and deployed en masse worldwide with an ever-expanding audience. As more mainstream applications are being built on blockchains, Polkadot (and thus its experimental sibling, Kusama) will no doubt undergo a lot of competition. Nonetheless, its unique interoperability features will likely make it a dominant force.
Is Kusama a Good Investment?
If you've peered into our Kusama price prediction guide thus far, then you'll have seen the algorithms light up green all the way, with the potential for 1,000+% returns within just a few years for KSM cryptocurrencies. Regardless of you believe those figures, whether you think they're too overly optimistic or too conservative, the bare fundamentals are showing great signs of growth in the near future. As we've highlighted earlier, blockchains are still at their early age.
There's still a lot of room for maturity as blockchains continually compete against one another for domination. This is a good thing, as more competition will only result in increased innovation and steely-eyed focus. Polkadot has set itself as a very strong contender in this space, providing truly unique solutions and novel ideas to the blockchain space. Being able to expand at scale while also letting projects grow out and seamless interaction between different blockchains is a huge plus point.
Yet, every project needs an open and completely unfiltered testing ground where their dev teams could pry open every single possibility and iron out all the rough edges before making their projects public. This can be hard to do with other blockchains and one where Kusama's unique relationship with Polkadot makes it a distinct duo. For this reason alone, if you believe that the global blockchain space is in need of more choices besides Ethereum, then Kusama is a great investment opportunity.
How to Buy Kusama's KSM Tokens
Being one of the largest, most popular, and most valuable cryptocurrencies, Kusama's KSM tokens are therefore quite easy to find. You could always use sites such as CoinMarketCap or CoinGecko to have a look through the comprehensive list. But in short, KSM tokens are for sale in a diverse variety of both centralized and decentralized exchanges. The biggest share of KSM trading volume is centered around a few marketplaces, primarily Binance, Huobi, Kraken, KuCoin, and OKEx.
More Information About Kusama
Kusama is described as the canary network of Polkadot, which are both permission-less, decentralized, and also share a similar codebase. Like an earlier, more experimental iteration of the Polkadot multichain, Kusama remains completely independent of Polkadot. It behaves as an open sandbox to test and refine software for beta testing or launching early access releases before making them completely public in its finished and polished state on Polkadot.
On Kusama, developers have access to the same tools, functionality, and underlying technology as Polkadot, including its expansive scalability and interoperability with other chains. The key difference is that Kusama's decentralized governance is structured in a way to enable faster (and sometimes riskier or unaudited) network upgrades compared to other blockchains. Network referendums only require seven days for voting and then eight days to implement those changes.
As with Polkadot, there are three core integral components that make up the multichain structure of Kusama. The Relay Chain is the central hub of the Kusama multichain, where governance takes place, and all other network coordination happens. Parachains are sovereign sidechains that run in parallel to the Relay Chain, making computation scalable and efficient. Meanwhile, Bridges are special blockchains that interoperate Kusama to work with outside chains, like Ethereum.
Kusama Price Prediction – Conclusion
In rounding off our Kusama price prediction, there's a lot of public vindication that its unique multichain is already gaining a fair bit of traction. Clover Finance, a brand new cross-chain smart contracts DeFi solution, is being brought to Kusama and Polkadot. Tether, the world's most valuable stablecoin, is launching its USDT tokens as the first stablecoins on Kusama. Meanwhile, NFTs left and right center starting to take shape on Kusama's multichain, including the Ethereum-borne Enjin.
With its lofty promises to solve the current limitations and challenges around most of the “old guard” blockchains like Ethereum, Kusama brings with it a lot of our aspirations. It's fair to say that practically all of us blockchain enthusiasts hope to see a day when much of our infrastructure today moves onto decentralized, transparent, and trust-less blockchains. This won't just necessitate scale but intercommunication between chains. That, then, shows just how excited we are for Kusama.