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Polkadot Kusama bridge could go live by end of 2021, traders bullish on DOT

  • Development of the Polkadot-Kusama bridge is currently underway; the DOT team predicts launch by the end of 2021.
  • Rococo testnet has turned into a community-maintained parachain testbed in the latest update. 
  • Analysts are more bullish on KSM tokens than DOT, as bridge development nears completion.
  • Polkadot’s social media activity exploded after the parachain launch announcement.

Polkadot is nearing its parachain auctions in November 2021. The post-auction phase of Kusama led to a drop in the price of KSM tokens. If the same occurred to DOT, the price of the altcoin would plunge in December 2021. 

Polkadot network goes through major upgrades; analysts predict massive rally in Q4 2021

The team behind the development of Polkadot has announced that the Polkadot-Kusama bridge, for interoperability of assets on both blockchains, will go live by the end of 2021. 

Pseudonymous cryptocurrency analyst @DonnieBigBags has predicted that the importance of the KSM token would go up. Following the launch of the bridge, all native KSM assets will be interchangeable with assets on the DOT blockchain, boosting the utility of the Kusama network’s tokens. 

Rococo, the parachain testnet that laid the groundwork for parallel blockchains on the Kusama network, has evolved into a community-maintained testbed. The upcoming Rococo revamp driven by Parity technologies involves rolling different features to the testnet in phases until it transitions into a community-maintained testbed.

Polkadot announced this shift in the future of Rococo testnet on October 16. 

Interestingly, at the end of the auction phase on the Kusama network, the KSM price dropped. The social media activity of the token exploded post-auction. Since the parachain launch announcement, there has been a notable spike in the social media activity of DOT. Historically a rise in social media activity is followed by a correction in price. DOT price will likely drop post-launch if it follows in KSM token’s footsteps. 

In contrast, analysts are bullish on DOT prices. Simon Dedic, a managing partner at Moonrock Capital, considers Polkadot a blue-chip tech stock. Dedic recently tweeted:

Pseudonymous cryptocurrency analyst @TiggersCrypto is more bullish on KSM tokens than DOT.

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.

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Polkadot Kusama bridge could go live by end of 2021, traders bullish on DOT