Polkadot and Kusama have emerged as top gainers over the past month. Despite the recent consolidation, analysts are bullish on "Dotsama."
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, an 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.
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.
analysts expect a 40% upswing in DOT price, though the altcoin is currently facing stiff resistance.
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