Kusama’s parachain auctions – Will the price of KSM go up?

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Kusama is considered to be the wild cousin of Polkadot. Both networks, together, forms a powerful duo that stands unparalleled in the cryptocurrency market. Essentially, Kusama is the testing ground for Polkadot. New blockchains are launched on Kusama tested and then eventually launched on Polkadot. Both the networks are similar in their working with a relay chain – the main network – and parachains – launched by users – however, Kusama offers much more flexibility to developers.

Kusama’s parachain auction 

However, operating a new network on Kusama – or Polkadot – is not open to everyone as parachains utilize the computing power of the relay chain. For this purpose, Kusama holds Parachain slot auctions. Kusama and Polkadot currently can only support up to 100 parachains. Although this number is not rigid and can be altered through the governance, the networks ensure that the parachains are selected fairly through the auction. 

DOT or KSM holders bond their holdings into whichever project they think deserve a parachain slot. This way the winner of a slot is decided. To further ensure fairness, the date and time of the selection of the winner is decided at random. 

Kusama successfully held the first five parachain auctions and now it has announced the next five slot auctions. Parachain slots six to ten will go live starting in September. Each auction will last for a week; hence, the auctions will end in five weeks. The sixth parachain auction will go live on 1st of September. The successful first five auctions indicate that the month of September will be filled with activity on Kusama’s network and price rallies may be underway. 

What does KSM’s future look like? 

Kusama had picked up the pace since the end of July as the cryptocurrency market began recovering. However, in recent timeframes the uptrend of the cryptocurrency has been broken. The trend may be reversed now that Kusama has announced the next five parachain auctions. At the time of writing, KSM stands at a price level of $303. The price has been showing positive signs with an increase of nearly 5% in the past twenty-four hours. 

The duo of Kusama and Polkadot is holds a strong position in the market. Kusama is considered one of the best cryptocurrencies to invest into. KSM stands at a market rank of fifty-one with a market capitalization of $2.9 billion. Hence, the future projections of the cryptocurrency are very bullish. According to the estimates of Wallet Investor, KSM coin will stand at a price level of $609 in a year’s time while the price in five years is expected at $1,698. Digital Coin Price projects similar price levels – albeit not as bullish. Per their projections, the year-end price is expected at $461 while the price in 2026 is expected to be at $1,040. 

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