Kusama KSM/USD remains under pressure; in less than several weeks, the price of this cryptocurrency fell from $630 to $163, and the current price stands around $216.
Fundamental analysis: Kusama introduced limitations of the current staking parameters
Kusama is a scalable network of specialized blockchains built using Substrate and nearly the same codebase as Polkadot. Kusama is also using the same tools as Polkadot and is governed by a community that votes on and controls the network’s evolution.
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This project was established in 2019 for teams who want to move fast and innovate on Kusama or prepare for deployment on Polkadot. It is important to mention that the founder of Kusama is Gavin Wood, founder of Polkadot and co-founder of Ethereum.
Build on a next-generation, sharded, multichain network, Kusama is ideal for startups looking to move swiftly through the governance and upgrade process. Kusama offers the ability to customize your specific needs and build your own app-specific blockchain and connect it to Kusama.
This network is truly transparent, build to spark innovation, and available from anywhere in the world. Kusama has experienced tremendous growth in its user activity last several months, and because of this, Kusama introduced limitations of the current staking parameters.
“While it’s important to allow as many people to nominate as possible, it’s even more important to ensure the stability of the network. As the number of nominators has increased up to approximately 30_000, the size of this graph has reached the point where it can impact nodes’ ability to function correctly,” the Kusama team reported.
Kusama will explore solutions to increase the number of nominators possible in the system and make improvements soon. This month, Kusama concluded its first parachain actions with the highest bid of $100 million from Karura Network.
The Kusama parachain actions are highly sought-after slots by the community and investors of the Polkadot ecosystem. The second parachain auction began on Monday 21th June, and there are around 100 parachain slots available.
Kusama’s price has skyrocketed since January 2021 and reached a record high above $600 on 18th May. Since then, the price has collapsed, daily trading volume has weakened, and the risk of further declines is probably not over.
Technical analysis: $200 represents the critical support level
Kusama currently trades around the $215 level, and it would be a strong sell signal if the price falls again below $200 support. The next price target could be around $150 or even below; still, if the price jumps above $300, we have the open way to $350.
Summary
Kusama has weakened from the record highs above $600, registered in May 2021, and the risk of further decline still persists. If the price falls again below $200 support, the next price target could be around $150 or even below.
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