DOT price rises 37% after Coinbase Pro Listing and first Parachain auction

Polkadot (DOT) has seen big upward moves in recent daily sessions as traders rate the cryptocurrency listed on the US-based digital asset trading platform Coinbase Pro. The upcoming period and auction of Parachain positions in the Beta of the Polkadot Network is Kusama this Tuesday.

The DOT / USD rate hit $ 26.44 in Monday’s trading, after rising about 37% from the previous day’s session. However, upon entering the Asia-Pacific and European hours on Tuesday, the pair corrected down 4.5% to hit an intraday low of $ 24.25. Currently, DOT is trading at $ 24.27.

POINT take off again after testing technical resistance near 26.668 Dollar | Source: TradingView

The first upward moves in the DOT market came after Bitcoin’s rally on Sunday. On Sunday, billionaire investor Elon Musk commented that he would restore bitcoin payments for Tesla electric cars if they were subsidized with renewable energy (~ 50%).

According to Musk’s comments, BTC / USD rose from $ 34,780 to over $ 40,000. In the meantime, the top altcoins are often following the trend of Bitcoin and pulling the DOT up.

However, the extent to which the DOT has increased is greater than most leading competitors. The ever-evolving movement in DOT price coincided with Coinbase Pro’s announcement to add a DOT-enabled trading engine to their platform.

Parachain auction on Kusama

In addition, Parallel Finance is bringing more optimistic signals to traders. The startup raised $ 2 million to add credit and staking capabilities to the Polkadot and Kusama blockchains.

In retrospect, Kusama acts as a sandpit for projects with the desire to start Parachain on Polkadot. The experimental blockchain thus delivers real economic advantages and results and enables many other blockchains and applications to start with fork-free upgrades, governance structures and scalability.

Therefore, projects that use Kusama’s internal parachain network to communicate with other applications have their own separate parachains.

But in order to win projects that want a parachain position like Parallel Finance, they have to enter the parachain auction. To do this, they must submit a bid (either in DOT or Kusama’s native KSM token) together with the expiry of the position (6 to 24 months). Accordingly, the network blocks DOT and KSM for the duration of the slot usage, which reduces the circulating supply of the token.

In addition, observers expect that the demand for DOT and KSM will continue to rise due to the competitive auction process.

The Santiment analytics platform has today tweets after the DOT rally:

“DOT has had one of its breakout days for quite some time, up + 20% as Bitcoin has been for the first time since the 26th. A promising sign that DOT can fully recover is that development activity on Github continues to increase. “

Polkadot development activities | Source: Santiment

According to Alex Siman, founder of Subsocial, a decentralized social network operating on Polkadot, projects that win the Parachain auction will go a long way in adding value to the community and supporters.

“Regarding the polkadot parachain, the number of slots for projects to build on the chain is limited to 100, which makes the auction process remarkably competitive. Projects that are not innovative will not win at such auctions and no project wants to miss the opportunity to go down in history. “

The first Parachain auction took place today around 6:00 p.m. Synthetic Teamese time (11:00 GMT) live on the Kusama network. At the time of going to press, the KSM price has fallen almost 6% in the past 24 hours.

KSM / USD | Source: Tradingview

The Council of Polkadot of Kusama approved Motion 310, which confirms the start of the auction for first place in the Kusama network. According to Polkadot Polkassembly, 13 of the 19 “seats” in the Kusama Council voted to start the placement auction process.

Kusama Network First Place Auction Approved | Source: Pole mounting

On the other hand, Polkadot has yet to announce the auction of its Parachain positions. Mira Christanto, a researcher at crypto data analytics firm Messari, found that 65% of active supply on DOT has been staked since May. Only 30% of the DOT is currently floating around and the battle of the upcoming Parachain price will result in more tokens going up the supply.

“After the introduction of the Parachain, 40% of the DOT can be linked in the Parachain, which reduces the circulating supply to only 15%.”

At home at home

According to Cointelegraph

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