Should you buy Kusama before the launch of the next five parachain auctions?
- The Kusama network is set to launch the next five parachain auctions.
- This is the result of a successful $450 million TVL in the first round of June 2021.
- The auction times are scheduled for 12:00 PM, GMT on September 1,8,15,22 and 29.
Kusama is an experimental blockchain platform.
It was designed to provide interoperable as well as scalable frameworks that developers can use.
Kusama is built on Substrate and has a similar codebase to Polkadot.
It has seen widespread usage as a “canary network” for developers that can experiment and determine the efficiency of their blockchain code as well as applications before the official release on the Polkadot network.
This allows them to test things with lower staking requirements, which proves to be convenient for them.
The Parachain auctions as catalysts for growth
Following the success of a parachain auction back in June of the year, the Kusama Council is set to approach another five auctions scheduled for the near future.
These Parachain auctions on Kusama are a method of auction analysis which is known as the candle method. Users can actually bid during a fixed allocated auction time and stake their KSM tokens for their favorite project. The winner is the project that gets the greatest funding total.
That being said, the next five parachain auctions are set for 12:00 PM GMT, on September 1, 8, 15, 22, and 29.
Should you buy Kusama (KSM)?
On August 20, Kusama (KSM) was worth $343.
That being said, when we compare it to its all-time high value of $621, it was achieved on May 18, 2021, and was 81% higher when compared to the value on August 20.
Furthermore, to get a better perspective of its more recent price changes, we will be analyzing its performance in July.
On July 7, it had a value of $236, which was its highest value point of the month. Its lowest point however was on July 20 where it fell in value to $142. This signaled a drop of the value of 40%.
From July 20 to August 20 however, the price increase is at 141% which showcases the potential for the token to grow even higher.
In the last 24 hours, Kusama (KSM) saw an increase in its market cap by 18% and an increase in its trading volume by 69%. This signals interest in the cryptocurrency token as well as heightened demand.
That being said, with the hype as well as the blockchain usage we will see on September 1,8,15, and 22, we can expect the value of the token to grow to $380 by the end of September.