fbpx
QQQ
+ 1.73
340.90
+ 0.5%
DIA
+ 5.77
327.19
+ 1.73%
SPY
+ 5.82
409.10
+ 1.4%
TLT
-2.44
148.17
-1.67%
GLD
+ 2.00
162.93
+ 1.21%

Why 'Polkadot's Wild Cousin' Kusama Is Up 33% Amid Crypto Sell-Off

May 13, 2021 12:48 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Why 'Polkadot's Wild Cousin' Kusama Is Up 33% Amid Crypto Sell-Off

Despite a massive cryptocurrency sell-off removing $500 billion from that market overnight, Kusama network’s native cryptocurrency KSM rose to an all-time high.

What Happened: KSM briefly dipped to a low of $438 in the immediate aftermath of the market dip, but quickly resumed its upward trend, rising 33% to a high of $587.24 earlier Thursday. The coin’s 24-hour trading volume was up by more than 360% to over $1.4 billion, at the time of writing.

Why It Matters: The Kusama network was launched by the same team behind Polkadot (DOT), with the aim of providing developers with an experimental blockchain platform to test their projects before migrating to Polkadot.

Kusama’s codebase is almost identical to Polkadot’s, but its “experimental nature” has led to the project being named “Polkadot’s wild cousin.”

The resilience in KSM’s price today was likely caused by the project announcing a major upgrade to add parachain auctions and crowd loan functionalities to Kusama.

“A key difference between parachain slot auctions and traditional ICOs is that those who contribute DOT or KSM to an auction and receive the project’s tokens via an airdrop may do so without transferring control of their KSM or DOT contributions to the bidding project team or any third party. In an ICO, users' funds are sent to the project team who use them at their discretion,” explained Kraken in a blog post.

KSM Price Action: At publication Thursday, KSM was trading at $572.67. Year-to-date, KSM has returned 650% and over a one-year time period, the token surged over 6,600%.

Related Link: What are the top healthcare stocks to watch right now? Benzinga Global Small Cap Conference streaming LIVE TODAY to find out

(Photo by CHUTTERSNAP on Unsplash)

 

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

China's Cryptocurrency Mining Crackdown Intensifies, Spreads To Sichuan

Keeping a tough stance on cryptocurrencies, China has issued an order to crack down on crypto mining operations in Sichuan’s southwest province, Reuters</ read more

EXCLUSIVE: Building On Top Of Bitcoin May Not Be As Popular As Ethereum, Other Blockchains, But We're 'Close To Seeing Some Runaway Success,' Says Stacks

Stacks (STX) aims to bring smart contracts and decentralized applications, or DApps, to Bitcoin (CRYPTO: BTC). An attractive facet for some is the ability to earn BTC earning through a mechanism the project calls “Stacking.”  Mitche read more

Why Cannabis-Specific Cryptos Will Not Take On Mainstream, But Crypto In Cannabis Might

Since the eruption of altcoins, the crypto space has experienced a wide variety of wonders and unexpected events. Smart contracts, Lighting network, DeFi, scams, bubbles and failed projects to name some of the most obvious. In the midst of this frenzy, a fascinating concept appeared: Cannabis Crypto.  read more

Elon Musk Counters Kraken CEO On Bitcoin Being 'Greener' Than Critics Say

What Happened: Jesse Powell, CEO of crypto exchange Kraken, thinks Elon Musk has more to learn on the topic of Bitcoin mining. read more