Kusama was created and launched in 2019 by the founder of Polkadot (DOT) and former CTO and co-founder of Ethereum, Gavin Wood. Kusma is a canary network for the Polkadot ecosystem and is defined as a public pre-production parachain network based on blockchain technology. Kusama allows developers to test and experiment with new blockchain environments and decentralized applications (Dapps) before releasing them on the Polkadot network.

[guidelink ksm] represents a perfect environment for developers as it operates as a testnet blockchain and it has a native cryptocurrency that can be traded in the crypto market. Kusama is an integral part of the Polkadot cryptoverse, but how is Kusama’s price defined, and what affects the value of Kusama and the KSM cryptocurrency?

If you’ve ever wondered this, then you’re in the right place. We’ve compiled everything you need to better understand the intricacies of Kusama price – and the factors that influence it.

Kusama Price History

The price of Kusama (KSM) is subject to frequent changes as KSM is volatile as the rest of the cryptocurrency market. Since KSM launched on the market as live-traded crypto, Kusama price has experienced its fair share of ups and downs, following market trends and the specific factors that influence the value and price of Kusama.

In September 2019, when Kusama (KSM) joined the crypto market, KSM was trading at the price of $6.16. However, KSM price dipped in the following months, trading below $5 and $4 during October and November 2019. In December, Kusama experienced new lows, trading below $2. During that month, prices dipped as low as $1.17 and fell further still in January 2020 before a mild recovery saw KSM regain December levels around the end of the month.

In February 2020, KSM price gradually rebounded to $3.15, then traded below $3 until March when it returned to a value of above $3. Prices fell back to below $2 before the month was out, however. KSM showed bullish momentum in April and broke the resistance of $5 in May. Kusama reached the value of $8.47 that month, which became the coin’s new all-time high (ATH). After a continuous combination of dips and rises in June, Kusama surpassed $15 in July before surging to a value above $45 the following month. In September, KSM recorded a new ATH of $60, then crashed down to its lowest monthly price of $29 a couple of days later. Despite a dip below $20 in October, Kusama was gaining positive momentum, and after fresh surges in November and December, the coin finished the year at a new high of $72.

The bullish trend continued in 2021, with Kusama reaching new highs around $120 in January. The highest price in February was about $300, before a slight dip at the end of the month. The surge resumed in March, with KSM reaching a top of $567 just before the end of the month. Despite a mostly bearish April, Kusama went on to find some fresh positive momentum and achieve its current ATH of $588.88 on 13 May 2021.

Analyzing Kusama Price History

When analyzing Kusama (KSM) price history, traders can use the same techniques used for analyzing other tradable assets in traditional financial markets. One of the most commonly used investment tools among crypto traders is Technical Analysis (TA), which is usually employed in combination with sentiment analysis and fundamental analysis to create a relevant price prediction for Kusama and other cryptos.

Technical analysis takes into consideration price charts, market data, historical prices, and market trends and is used to try and make sense of market patterns and predict the future value of KSM. 

To create more accurate price forecasts for Kusama and other crypto assets, traders also use fundamental analysis. This technique examines factors that may influence Kusama prices, such as Kusama’s utility, the use, and adoption of KSM, important news and events, technology, and the general technical value of KSM. 

The value of KSM also depends on its supply and the popularity of Polkadot (DOT) as the two networks are a part of the same ecosystem and were both created by Gavin Wood. Kusama price is dependent on the frequency of use among developers creating for the Polkadot network, and its popularity may cause the price to rise.

Sentiment analysis studies the overall sentiment regarding the market and Kusama among investors and traders. Sentiment analysis considers important news and events, and an overall feeling that traders have about Kusama, ranking sentiment as negative, positive, or neutral. Combined with TA and fundamental analysis, traders can use sentiment analysis to make predictions about the future value of Kusama.

Factors Influencing the Price of Kusama

A multitude of specific factors can affect the price of Kusama. One of these factors is itsl supply, which is subject to the same inflation rate as Polkadot. An increasing supply tends to put downward pressure on the price of an asset. However, as the inflation is used to pay staking rewards, it could incentivize more people to buy and stake KSM, ultimately boosting its price.

Kusama will often follow collective market trends and respond to the changes in the wider economy. A perfect example might be the rebound of the crypto market that started at the end of 2020 and the beginning of 2021. During this period, the majority of cryptos, including Kusama, reached new all-time high values and were able to rebound from previous losses. Aside from following collective market trends, Kusama is influenced by the level of adoption of KSM and the frequency of use.

Kusama is also dependent on the success of Polkadot, as the two projects are technically interconnected. As a canary network, Kusama copies most of Polkadot’s technical capabilities and it uses two types of blockchain. One blockchain is the relay chain and the main network with permanent transaction records, and the other consists of generated networks called parachains. 

Since Kusama is a pre-production network for Polkadot, the popularity of Polkadot may influence the price of Kusama. Also, as the number of Polkadot parachains is limited, projects that don’t quite make the cut could potentially end up deploying on Kusama instead, which could increase the value of KSM.

Kusama is a part of the decentralized Web 3.0 ecosystem with blockchain interoperability. Kusama value may increase with the further development of Polkadot and Web 3.0 functions.

Live Kusama Value and Market Cap

Kusama’s value changes from one moment to the next, following the volatile market and forming new market prices as a result of balancing between the buying and selling prices. That balance is in constant flux and reflects the volatility of the crypto market.

The market cap is equal to the number of Kusama in circulation multiplied by the current price of KSM, which means that the market cap is in constant flux as well. The market cap ranks Kusama in comparison with other cryptos and defines the market share of KSM.

Kusama Price FAQ

What was Kusama’s lowest price?

Is Kusama Worth Buying?

Kusama is considered to be undervalued in the crypto market when compared with Polkadot, so KSM could make a solid investment. Kusama is 4 times faster than Polkadot and it represents an integral part of the Polkadot project and Web 3.0.

How Many Kusama Coins Are There In Circulation?

As of May 2021, there is a circulating supply of 8,470,098 KSM. The inflation rate is designed to be 10% per year, with validator rewards being a function of the amount of KSM staked. If the amount staked is more or less than 50%, the proportional remainder goes to the treasury.

Conclusion

As an integral part of Polkadot’s decentralized Web 3.0, Kusama (KSM) is said to be undervalued when it comes to its market price. From its lowest point at the value of $0.87 to an all-time high of over $588, Kusama (KSM) has been on a wild ride since it launched.  

 The use of the parachain structure and the ability to test blockchain projects and applications before deployment to Polkadot is what makes Kusama (KSM) a crucial player in Polkadot’s technical evolution, while KSM stands as an attractive crypto asset.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of Kusama and cryptocurrencies!