Analysts consider Polkadot and Kusama “money makers,” argue that DOT is massively undervalued


  • Earlier this week, Kusama minted NFTs in a limited edition "Kusama Parachain Launch Collection" and sent them to the network's newsletter subscribers.
  • Analysts remain long-term bullish on Polkadot, expect a rally to a new all-time high with the launch of parachains.
  • Over the past month, Polkadot and Kusama combined, "Dotsama," have had more development activity than any other blockchain project.

Polkadot (DOT) and Kusama (KSM) have emerged as top gainers over the past month. Despite the recent consolidation, analysts are bullish on "Dotsama."

Polkadot is likely to make a comeback

The multi-blockchain protocol focused on creating cross-chain bridges is making strides in its ecosystem development. After successfully completing the first parachain auction on Kusama, the blockchain protocol is now on round two. 

The first five parachains resulted in 10% of the KSM supply getting bonded (pulled out of circulation). Historically, scarcity drives prices of assets higher. Therefore, increase in the percentage of KSM supply getting bonded is directly correlated to KSM price. 

Interestingly, Polkadot's ecosystem has garnered less attention from the crypto community since projects on the Binance Smart Chain, Polygon, Terra and Solana are live and have attracted traders. 

Though the community is still waiting on an announcement for the launch of parachains, Polkadot has fostered a community of developers building projects with strong use cases on DOT. The ecosystem is favorable for massive growth, and it is ready to go. 

Lark Davis, cryptocurrency analyst and YoutTube content creator, recently took to Twitter to share his bullish outlook on DOT. 

Interestingly, based on a report by crypto research and data platform Messari, Polkadot is one of the most commonly held liquid assets (excluding Bitcoin and Ethereum) across Crypto Venture and Hedge Fund Portfolios, as of July 2021. 

Most commonly held crypto assets across institutions.

Most commonly held crypto assets across institutions.

Institutional interest is expected to skyrocket with the announcement of parachain launch. 

In the case of Kusama, the asset is jumping on new trends. Earlier this week, the team dropped a limited edition NFT collection, minting 9,999 NFTs for the "Kusama Parachain Launch Collection."

The NFTs were distributed to the subscribers of the project's newsletter. 

Overall, updates in the project’s ecosystem over the past two months have turned analysts bullish on DOT price. "Dotsama" is being referred to as a "money maker" for its upside potential. 

Lark Davis states,

Even if you had bought the top on KSM, you would be up 10X on $movr, most who backed them are up 20 to 100X or more. And the real kicker with parachain auctions…. you get your KSM back at the end! This is solid proof Dotsama is a money maker.

FXStreet analysts expect a 40% upswing in DOT price, though the altcoin is currently facing stiff resistance. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP