Major protocol upgrades are one of the most potent sources of price movement for cryptocurrency projects as community members and investors get excited about new features and traders rush in to “buy the rumor and sell the news”.
One protocol that has seen its price rise to new rights this week despite the overall bearish conditions affecting the market is Kusama (KSM), an experimental blockchain platform and a sister chain to the Polkadot’s platform. Kusama is designed to provide an interoperable and scalable framework for developers.
Data from Cointelegraph Markets Pro and TradingView 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.
Three reasons for the recent price appreciation for KSM include the upcoming launch of parachain auctions, 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.
Parachains are on the verge of launching
The most significant development for Kusama of late came on May 12 when the project announced that the most recent upgrade proposal was approved by the council and is now a public referendum.
BEAKING: Upgrade v0.9.1 passed council and is now a public referendum, fast-tracked to end Friday ~12pm CEST. This upgrade includes the code for parachains, auctions and crowdloans, reduces the min. vested transfer by 100x and reduces fees/deposits by 50x.
— kusama (@kusamanetwork) May 12, 2021
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.
Since KSM tokens are required to be able to participate in voting, demand for the token immediately increased following the announcement and it…