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.


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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Largest DeFi exploit of 2022 wipes out $80 million from Qubit's Ethereum-BSC bridge

Ethereum-BSC bridge of Qubit Finance suffered a hack to the tune of $80 million in the largest DeFi exploit of 2022. Hackers exploited the "deposit" function to steal cryptocurrencies from Qubit Finance. 

More Ethereum News

Decentraland bulls go against the bearish trend, targeting $2.60

Decentraland (MANA) price has been on the front foot in a challenging market environment. MANA bulls look ready to eke out  28% of gains for this week after the price lifted from the 200-day Simple Moving Average (SMA) and is now set to pop and stay above the monthly S1 support level.

More Decentraland News

Charles Hoskinson awaits launch of Vaccuumlabs DEX on the Cardano network

Cardano network activity hit a peak with a spike in transactions on the network. Charles Hoskinson, the CEO of IOHK, is awaiting the launch of Vaccuumlab's DEX on the Cardano network. 

More Cardano News

Why Bitcoin has entered a new bear market

Bitcoin price has tumbled to a multi-month low below $33,000, as the leading cryptocurrency loses 50% of its value from its all-time high in November 2021. This marks the second-worst sell-off since the bear market that spanned from 2018 to 2020. 

More Bitcoin News

Bitcoin: Federal Reserve cannot tame BTC’s uptrend

Bitcoin experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed’s decision was announced. As losses have extended and Bitcoin has entered into the $30,000 zone, concerns regarding BTC being in a bear market have increased.

Read full analysis