Gavid Wood plans to spend DOT 18.9 million in coffers (up to $ 826,497 million at press time) on ecosystem development, which makes Polkadot all the more desirable. For almost 3 months, the DOT price has seen a sustained rally, albeit a little slow at times, but overall very well.
DOT 1 Day Price Chart | Source: Tradingview
As BTC regained momentum, rising 1.12% to $ 62,728 at press time, major altcoins followed suit. Similarly, the DOT is ready for a breakout this time as it hovers near USD 44 and is up 2% on the daily chart.
What is paving the way for DOT?
On October 22nd, PolkaPet World, the NFT project in the Polkadot ecosystem in partnership with 21 of the largest Polkadot projects, announced that the first round of donations for the highly anticipated PETS token worth more than $ 3.1 million has been completed .
With the announcement of the first Parachain auction on Polkadot, the path for DOT will be optimistic in the near future. On the flip side, as November draws closer, DOT is now into a hype with the first batch slated for 11/11. it’s planned.
The high expectations of the altcoin in 8th place are reflected in the high social volume. In addition, the negative sentiment (-0.56), which was weighted at the time of going to press, has created more opportunities for price recovery.
In addition, analyst Lark Davis demonstrate some more reasons to be optimistic about this altcoin.
First of all, he is looking forward to the Parachain auctions in November and points out the top 3 candidates he supports.
Moonbeam is a Polkadot-based smart contract Parachain that is compatible with Ethereum and supports Solidity and Vyper. Acala is now also compatible with Ethereum and has smart contracts. It claims to be “Polkadot’s DeFi Hub”. Finally, Parallel Finance is a DeFi platform with staking, borrowing and borrowing capabilities.
As previously reported, there will be 11 Parachain auctions in two tranches, with the first on 11/11. Parachain connected to Polkadot’s relay chain. Their introduction means an expansion of the Polkadot ecosystem and increased interoperability.
But why are investors so excited about Parachain? In addition to improved interoperability, fork-free upgrades are another promising feature.
But that’s not all. This summer, research by Messari showed that DOT is the most widely held liquid asset when it comes to hedge and venture fund portfolios. This means that rich players are more involved in the DOT.
The source: Lark Davis
Write about Acala, Messari too Note that the blockchain has an on-chain treasury managed by the community and holds both native assets and external assets such as DOT.
In addition, the performance of parachain auctions on Kusama can also increase investor confidence. According to Polkadot, Kusama is like a “spy” exploring new areas and contributing to the safety and slower progress of Polkadot.
Watch the Treasury
Around the middle of October, Polkadot founder Gavin Wood, explain that the Polkadot till contains more than 18 million DOT (806,118,291).
“DOT in treasury is a natural part of the network protocol. Fees, penalties (slashing), and best staking configuration are all factors that contribute to this. When not in use, it will gradually be burned. Currently the log burns 239,988 DOT per month. “
The treasury volume in USD corresponds to that of Cardano’s Project Catalyst, about 1 billion US dollars. However, while Catalyst sees it as decentralized, the Polkadot Treasury Department is largely controlled by a group of voters known as the “Council”.
Notably, DOT’s adjusted NVT has increased significantly over the past day, suggesting that the network is overrated. In the case of DOT, higher NVT values most likely predict valid growing cycles.
The source: Messari
Although the price of the DOT appears to be consolidating, as the candles on the one-day chart are significantly shorter, the circulating market capitalization and cap dominance are heading for a top. The Sharpe ratio is also holding up well for over a week despite the recent consolidation. This shows that DOT is performing quite well against a “risk free” asset.
The source: Messari
At the time of writing, whales accounted for over $ 5 million in total stablecoin supply at an all-time high of 53.02, which looks like whales are clustering more than ever on the horizon.
The source: Sanbase
In addition, BTC’s correlation with DOT is also important for its rally. Over the past month, DOT has been sensitive to the dynamics of BTC. However, depending on the rally of the crypto king, DOT’s path is pretty clear.
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According to AZCoin News