Kusama (KSM) price hits new highs as parachain auctions begin to take shape
Kusama, an experimental blockchain platform and a sister chain of Polkadot, has seen its price rise to new rights this week despite the overall bearish condition.
Market data from leading crypto aggregators shows that after dropping to a low of $378 on May 10, the price of Kusama rallied 55% to a new all-time high at $591.55 today thanks to a record $1.568 billion in 24-hour trading volume.
The reason behind the recent price surge in KSM is the upcoming launch of parachain auctions along with several updates such as recent integrations that helped enhance the interoperability of Kusama with other networks, and increased opportunities to stake or lock up KSM to earn a yield.
On May 12, the project announced the most recent upgrade proposal was approved by the council and is now a public referendum. This development provided token holders a three-day window between May 12 and May 14 to vote for the different parachains, crowd loans and auctions that they want to see on the Kusama network.
Following the announcement, Demand for the KSM increased as tokens are required to be able to participate in voting.
Another scenario for KSM's price growth over the past month was the April 23 announcement that Chainlink awarded a grant to ChainSafe Systems to help expand support for Kusama on the Chainlink Oracle Pallet.
The announcement described that the expanded support enables developers to build hybrid smart contracts on DOT and KSM parachains along with other substrate chains, significantly enhancing their interoperability capability.
In addition to the surge in the Kusama price, A third motivating force behind the demand for KSM is the attractive yield opportunities offered to token holders willing to stake their KSM tokens on the network or with new parachains.
Data from staking rewards shows that the average rate of return for staking and delegating KSM on the network is 13.72% while running a validator node earns 14.72%.