Kusama [KSM] soars 119% in just one day thanks to assistance from DOT

The Remarkable Surge of Kusama [KSM] Coin by 119% within 24 Hours, Boosted by Support from DOT

The native digital asset of Kusama, known as KSM, recently experienced a remarkable surge that placed it among the top performers in the cryptocurrency market over the past week. Let’s delve into the series of events that unfolded, paving the way for the recent uptrend of KSM.

While some digital currencies were achieving new all-time highs, KSM had been struggling to establish a solid bullish momentum.

Throughout 2024, the market sentiment had mostly been bearish, despite a brief bullish phase earlier in the year. In mid-March, KSM managed to rally to a peak of $61.11 before facing a bearish reversal.

By August, KSM had plunged to as low as $13.85 and had difficulty breaking out of the low-price range. In the current month, its price hit a monthly low of $14.71, indicating a challenging period for the cryptocurrency.

Despite a period of consolidation following the price decline, the most significant surge occurred during the trading session on Saturday.

On the 23rd of November, KSM recorded a notable gain of 119.68%, surging from $23.09 to $52.20. This surge represented the largest single-day increase for KSM in 2024.

As of the latest available data, KSM was trading at $44.72, indicating some profit-taking activities and suggesting that the coin had entered an overbought phase during its recent peak.

Analysis of Key Factors Influencing the KSM Price Rally

The primary catalyst behind the surge was a rotation of liquidity. Bitcoin’s dominance in the market dropped from 61.53% to 58.35% within a week, leading to a shift of liquidity into alternative cryptocurrencies, particularly those within the Polkadot ecosystem.

The rally commenced with Polkadot’s native token, DOT, which surged by over 50%. Given Kusama’s close ties to Polkadot, it benefited from the increased liquidity inflows into the ecosystem.

Furthermore, KSM’s perceived undervaluation played a crucial role in attracting investors. In the previous bull market in 2021, KSM had secured a spot among the top 50 cryptocurrencies and reached a peak price of $624. This historical performance contributed to the belief that KSM was undervalued at the time.

Now, the question on many investors’ minds is how far KSM can push its rally?

Recent data from DeFiLlama revealed that KSM token volume surged to $1.36 billion within a 24-hour period, marking the highest level of activity on the network in the past three years.

Contrastingly, the previous peak of KSM volume in November had been $49 million. The sustainability of this heightened activity level remains uncertain moving forward.