Deep Dive
1. Major Runtime Upgrade (30 December 2025)
Overview: This upgrade made the network significantly faster and more accessible to developers. It cut the time to confirm transactions by more than half and created a new environment where developers can easily port their Ethereum-based applications.
The upgrade introduced two core features: Elastic Scaling and the Revive smart contract platform. Elastic Scaling reduced average block times from approximately 6 seconds to under 2 seconds, increasing network throughput. Revive unified the Polkadot Virtual Machine (PVM) and Ethereum Virtual Machine (EVM), allowing developers to deploy standard Solidity smart contracts without modification and use familiar Ethereum development tools.
What this means: This is bullish for KSM because it makes the network much faster and cheaper to use, while directly competing for Ethereum developers by lowering the barrier to entry. The improved performance could attract more projects and users, potentially increasing demand for the KSM token.
(Polkadot)
2. USDT Support Deprecation (1 September 2025)
Overview: Tether ended official support for its USDT stablecoin on the Kusama network. This was not a code removal but a policy change that required users to migrate their assets to other supported chains like Polkadot before a deadline to avoid losing access.
While Tether later reversed its decision to freeze tokens, it stopped issuing new USDT or redeeming existing ones on Kusama. This significantly reduced the stablecoin's utility and liquidity on the network, pushing activity toward other ecosystems.
What this means: This is bearish for KSM as it reduces a key source of liquidity and utility on the network, potentially making it less attractive for decentralized finance (DeFi) applications and everyday transactions that rely on stable assets.
(kusama)
Conclusion
Kusama's development trajectory shows a clear focus on technical scalability and developer adoption, as evidenced by its performance-boosting runtime upgrade. However, the loss of major stablecoin support highlights ongoing challenges in maintaining a vibrant, multi-asset ecosystem. Will Kusama's improved technology be enough to overcome its diminishing role in the broader Polkadot landscape?