Is now the right time to add DOT to your portfolio?
With the presence of over 1000 public blockchains, the crypto space has turned into a multi-chain universe where each chain specializes in something. However, interoperability is a major barrier in this area and this makes the market seem even more fragmented than it actually is.
In the meantime, Polkadot has tried to solve this problem with its unique approach. Only the last few days Pole mounting, the Kusama Council approved Motion 310 and confirmed the start of the auction for first place on its network. These auctions will help determine which Parachain listings will be added to Kusama’s relay chain.
In fact, parachains can interact with each other within the system and exchange data and assets and also connect to external networks such as Bitcoin and Ethereum via bridges.
Although Polkadot and Kusama (the sister chain of Polkadot’s Foundation) use similar code, they are separate, independent networks. This independence is the main reason that paves the way for faster upgrades and tests in your network.
According to the Gavin wood, the developers of the above networks, the auction for first place will run for more than 5 days and the winner will be announced by June 22nd. Generally, the first set of five consecutive auctions lasts 5 weeks and then the network’s performance is assessed before entering the second round.
On the other hand, in terms of placement auctions, KSM is 12% in 24 hours and almost 20% less than last week.
KSM / USD | Source: Tradingview
However, Gavin Wood further emphasized that once the Kusama auctions are successfully completed, Polkadot auctions will begin soon.
“The Polkadot parachain launch is expected to begin after two events: First, a full external review of all new logics must be performed. Second, the Kusama network proves that the new logic can work by running at least one successful crowdloan-related auction (Crowdled KSM) and hosting at least one functional parachain. “
DOT price (green) and development activity (blue) | source: Mood
According to a analysis Recently, Santiment’s Polkadot was separated from the cryptocurrency market, all thanks to development activities within its ecosystem. Additionally, a host of other developments in this area have helped keep DOT in the spotlight.
For example, the Coinbase Pro trading platform recently added DOT to their network. In a short period of time, the price of Polkadot’s tokens rose, but could not hold it for long. Also, over 65% of DOT’s active supply has been staked since May, and only 30% of DOT is reportedly still in circulation Data from Messari.
DOT price prediction in 2022 | source: DigitalCoin
However, it should also be noted that the explosion of DeFi and NFT introduced Polkadot’s base layer as a “reliable” alternative to the “expensive” and “congested” Ethereum network.
By and large, Polkadot is growing steadily and is expected to keep growing in the near future. According to DigitalCoinPrice, the price of DOT is expected to rise in early 2022 and hit $ 40 in January, so it is likely a “profitable investment” according to their forecast. However, at the time of writing, the ninth largest alt is trading just above the $ 23 mark.
At home at home
According to AMBCrypto