|

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. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

Ethereum Price Forecast: Long-term holders' capitulation drives ETH below $1,800

Ethereum has fallen below $1,800 on Wednesday, the first time since May 2025 following accelerated spot selling pressure and distributions from long-term holders.

XRP and XLM outlook: Bearish streak extends as risk-off mood erodes retail demand, ETF flows

Ripple and Stellar prices face intense selling pressure, extending losses on Thursday for the fourth consecutive day this week. Cross-border remittance tokens are losing retail sentiment, while XRP faces additional pressure from Exchange-Traded Fund outflows. 

Bitcoin drops below $65K amid reinforced bear market signals

Bitcoin dipped further below $65,000 with onchain data from Glassnode signaling a market firmly in a bear phase. The decline has pushed prices back into a key valuation range between the Realized Price and the True Market Mean.

Grayscale launches Hyperliquid staking ETF, undercutting rival fees

Grayscale announced the launch of its Hyperliquid Staking ETF (HYPG) on Wednesday, now trading on Nasdaq. The fund offers investors direct exposure to HYPE and incorporates staking rewards, which the company claims have historically ranged from 2.2% to 2.3% annually.

Billions in ETF outflows don’t bode well
Bitcoin (BTC) remains under pressure, trading below $74,000 on Friday, and is set to post its third consecutive week of losses. The institutional sell-off continues, with spot BTC Exchange-Traded funds (ETFs) recording billions in outflows. In addition, sticky inflation and macroeconomic headwinds suppress the Crypto King’s upside potential. Institutional demand continues to weaken so far this week.