Despite the crypto market staying under selling pressure last week, Polkadot (DOT) has managed to continue with the price surge. As of press time, Polkadot is trading 3% higher at a price of $36.62 and a market cap of $36.3 billion.
Polkadot (DOT) is the only one among the top ten players with weekly gains of more than 30%. However, looking at the developments in the Polkadot ecosystem, the DOT crypto is on its way to $50 and beyond.
The DOT ecosystem continues to grow with strength. It is, however, facing strong competition from new emerging players like Polygon, Terra, Solana, etc. Furthermore, Polkadot is witnessing some strong institutional money inflow recently. As per data from Messari, Polkadot (DOT) remains the most commonly held liquid asset by hedge funds and venture capitals.
The Polkadot Parachain Ecosystem
The Polkadot parachain ecosystem has been growing very fast recently. Last week, the KILT protocol managed to win the final slot.
Polkadot-based Kusama has successfully conducted their first round of parachain auctions and is now moving to the second round. As crypto analyst Lark Davis explains, Moon River turned out to be one of the best auctions during round one. He further notes:
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.
The more KSM bonded the less there is available the higher the price will go, plus bonding makes super sicks gains, plus you get all your KSM back = M O O N.
These are some strong fundamental developments taking place in the Polkadot ecosystem. This will only increase the utility of the DOT cryptocurrency going ahead.
Is Polkadot’s (DOT) surge enough to grab investors’ attention?
Polkadot is showing promising indicators that can attract more investors to this ecosystem and its products. A price surge happened in the past months, and DOT price went high from about $10 in July to the current trading price of about $41.
The data from other charts show that the blockchain is capable of attracting more investors, and the price may go even higher. Some FOMO and some interesting products may be able to attract more buyers and help DOT go even higher. It can help other tokens of this ecosystem like KSM as well.
Another Promising Alternative
Polkadot is among the most popular blockchains showing promising capabilities to become a powerful alternative to blockchains like Ethereum. It can be considered as a freeway that connects blockchains.
The parachain concept in this network is very interesting and can solve many of the challenges we have in the blockchain industry.
The canary blockchain of Kusama is another promising network in this ecosystem that has been very successful in attracting developers and even end-users. All of these features and potentials result in a price surge for DOT and other ecosystem tokens, too.
The latest data about DOT shows the token and the blockchain are in a good situation. The latest price surge may even continue and move the price of DOT even higher. The latest analysis by Santiment shows the developer activity is increasing on this blockchain that can be another impactful factor to the blockchain.
“#Polkadot had a temporary price surge that was enough to grab traders’ attention. We’re seeing an influx of #bullish calls in our data. Additionally, we see here that development activity for $DOT has increased quite notably as time has progressed.”
Developer activity is among the top factors that can affect the blockchain very well. When more developers are coming to a blockchain and offering products on that, more end users may join the community and use the native tokens as well. DOT, KSM, and other tokens of the Polkadot ecosystem benefit from this movement. The charts always show that an increase in the development activity can result in a price surge for a token. It seems happening for Polkadot and may continue.
There are other factors in the market that affect the price of a token. Blockchains like Polkadot that have a growing community can experience the rise and falls easily. But this blockchain has shown its capabilities with numerous products and concepts, and we can expect it to grow more and faster in the coming months.
Much-Awaited Polkadot Parachain Auctions to Begin on November 11, 2021
After Kusama, the main Polkadot chain is now all set to host the first parachain on its Relay Chain as the team has announced that the much-awaited Polkadot parachain auctions would begin on November 11, 2021.
Polkadot announced the schedule in a blog post on Wednesday, October 13th. According to the announcement, speaking at the Sub0 conference, founders Gavin Wood and Robert Habermeier said that Polkadot was technically ready to support its first parachain. This was followed by motion 118 submitted to Polkadot Council to open up the network’s first parachain slot auctions, proposed to begin on November 11th, 2021.
This proposal is now going through a public referendum. This means that there could be minor changes to the schedule, nevertheless, Polkadot is now ready to host parachains. If the motion is passed, the Polkadot parachain auctions will begin on November 11, 2021.
Like Kusama auctions, each auction will last for 1 week. According to the blog post:
“The first batch of 5 auctions would take place with 1 new auction each week, with the second batch of 6 auctions to take place with 1 new auction every two weeks.”
As in Kusama auctions, each Polkadot parachain slot auction will consist of two periods: a starting period of 1 day and 18 hours and an ending period of approximately 5 days.
The holders of Polkadot’s native token DOT would require unbonded DOTs to participate in parachain crowdloans. The current unbonding period on Polkadot is 28 days. This means that DOT holders have to start unbonding their DOTs holdings immediately to participate.
There is a change in the process of how the parachains will be onboarded on Polkadot’s Relay Chain. Unlike Kusama, where winner parachains are onboarded immediately, parachains for Polkadot will be onboarded in batches at the start of a leasing period.
The blog post notes:
“The first batch of 5 parachains would be onboarded to Polkadot at lease period 6, which begins on approximately December 17th, 2021, rather than being onboarded immediately following each auction as has occurred on Kusama. The second batch of 6 auctions would be onboarded for lease period 7, which begins on approximately March 11th, 2022. Each auction on Polkadot will assign a parachain slot for a total of 96 weeks (divided into 8 12-week lease periods) as opposed to Kusama’s 48 weeks.”
Auctions for the first batch of 5 parachains will begin on November 11 and will end on December 16th. Winners will be onboarded on December 17th, 2021 for the period December 17th, 2021 to October 20th, 2023.
Auctions for the second batch of 6 parachains will commence on December 23rd and will go on until March 10, 2022. Winners will be allotted their slots on March 11, 2022, from March 11th, 2022 to January 12th, 2024.
Auctions for Polkadot’s canary chain are also underway. 11th parachain auction has been concluded on Wednesday, October 13th, and Kintsugi BTC, the canary network of Inter BTC, is now the 12th in total and the 11th real-world parachain on Kusama.
Polkadot Massive Rally On Horizon ! DOT Price Eyeing $100
After a likely date for parachain auctions was determined, Polkadot’s token jumped to $40 for the first time in five months.
The November 11 auctions will bring the interoperable multichain network one step closer to a live debut.
Polkadot parachains can share data and connect to other blockchains such as Ethereum, potentially enabling new services such as DeFi and NFTs.
Five years after the idea was created and work began, Polkadot stated that its network is now ready to deploy parachains. Parachains are the final milestone in Polkadot’s network development path, according to the project whitepaper.
DOT has increased by 48% in the last two weeks and is currently only 16% away from it’s all-time high of $49.39 established on May 15th. At the time of writing DOT is trading at $40.44 and is up by 15.4%.
Polkadot Price Walking Towards $100
According to Binance data, Dot’s price soared as much as 19 percent to a high of $43.56 on Wednesday after the auction announcement. At the time of our latest check on Thursday, it was trading at $40.76. The coin was down 2.93 percent at 40.42 at the time of writing.
This is also symptomatic of a decline, as the price has dropped to $41 in the last four hours. The last upswing had been quite powerful, as the price had broken through the $42 barrier. If DOT’s advances continue, the altcoin may test the upper resistance levels of $42 and $44, respectively.
On the other hand, if DOT fails to hold the recent important highs, it may be on the verge of a correction. DOT will be forced to test the lower support levels of $38 and $36 as a result of dipping.
Michael Van Poppe, a well-known trader and expert, recently tweeted that Polkadot might reach $100.