Bitcoin
BTC$16 978.70

4.39%

Ethereum
ETH$1 272.58

7.65%

Tether
USDT$0.999717

0.01%

Binance Coin
BNB$303.20

2.45%

USD Coin
USDC$1.000139

-0.01%

Binance USD
BUSD$1.000531

-0.02%

Polkadot price moves higher as parachain auctions reduce DOT’s circulating supply


10 Nov 2021

#Polkadot

DOT price targets new highs and investors expect the ongoing Polkadot parachain auctions to send the price on a trajectory that mirrors Kusama’s 2020 breakout. This week, a number of contenders are set to participate in Polkadot's first parachain auctions and this process tends to place buy pressure on DOT, while also giving aspiring blockchain projects a chance to show why they offer the most competitive solutions to the different demands that exist in the crypto sector.

The ongoing Polkadot parachain auctions follow the success of similar auctions on its sister network Kusama, where projects like Moonriver (MOVR) and Karura have each successfully secured a parachain slot for the next year.

The Kusama parachain auctions began during a downturn in the wider crypto market and played a role in helping KSM recover from a low of $148.85 on July 19 to its current price near $457 as the tokens pledged to auctions were pulled from circulation. Here’s a look at some of the parachain auctions currently underway on the Polkadot network and similar to the Kusama auctions, DOT could receive a boost as an increasing number of tokens are removed from the circulating supply.

Acala

Acala (ACA) is a layer-one smart contract platform billed as the decentralized finance (DeF) and liquidity hub of Polkadot. The protocol is Ethereum (ETH)-compatible and has built-in liquidity and ready-made financial applications, including a trustless exchange, a decentralized stablecoin (aUSD) and DOT Liquid Staking (LDOT).

Acala is the sister network of the Karura (KAR) DeFi protocol, which operates on the Kusama network and offers many of the same functionalities.

Given that DeFi has emerged as one of the foundational sectors of the cryptocurrency ecosystem, having a large, established DeFi protocol that can attract liquidity and offer token holders some yield is a must-have for every network.

Moonbeam

Moonbeam (GLMR) is a fully Ethereum compatible smart contract platform designed to simplify the process for multi-chain projects to launch on the Polkadot network. Moonbeam’s sister network on Kusama is Moonriver, which offered the highest reward rating of all parachains launched on the Kusama network.

Simplifying the process of a cross-chain migration to Polkadot is an important issue to address in the current market because high fees on Ethereum is still one of the main reaons why investors and developers have shifted to lower-cost alternatives like Polygon, Fantom and Avalanche.

If Moonbeam can help simplify that process for interested projects, it has the potential to help boost the overall strength of and activity on Polkadot.

Astar

Astar (ASTR) is a protocol focused on the creation of a scalable and interoperable infrastructure for Web3.0 through the creation of a multi-virtual machine supporting platform that connects compatible layer-one protocols with the Polkadot network. Astar is also capable of acting as a scalable smart contract platform that helps the Polkadot relay chain which is not able to support smart contracts.

Parallel Finance

Parallel Finance (PARA) is a DeFi lending protocol and automated money market (AMM) that supports both Polkadot and Kusama-based assets and also gives token holders the ability to put their assets to work by earning interest.

The protocol aims to offer higher liquidity, yield and capital efficiency for the Polkadot ecosystem and users will eventually be able to lend, stake and borrow assets from any of the supported networks.

DOT and KSM turn bullish ahead of auctions

The ongoing parachain auctions for Polkadot are likely to put positive pressure on the price of DOT because users are buying tokens to contribute to crowdloans and this effectively removes the tokens from circulation for two years.

As seen in the chart, the introduction of crowdloans on Kusama in June 2021 resulted in a spike in token price while the price action for DOT was more muted.

Now, the opposite is occurring as the price of DOT is seen outperforming the price of KSM, a process that began mid-September just as excitement for the Polkadot parachain auctions started to increase. With eleven sets of parachain auctions set to run weekly between November 11, 2021 and March 10, 2022, there is a strong possibility that the price of DOT will continue to increase as long as the demand for parachain access continues.


Related

Moonbeam (GLMR) launch brings EVM interoperability closer to the Polkadot network
Moonbeam (GLMR) launch brings EVM interoperability closer to the Polkadot network
Polkadot to debut parachain auctions after governance vote
Polkadot to debut parachain auctions after governance vote
Three reasons why Polkadot is en-route to a new all-time high even after a 256% rally
Three reasons why Polkadot is en-route to a new all-time high even after a 256% rally
Polkadot (DOT) ends weekend with 10% surge
Polkadot (DOT) ends weekend with 10% surge
Reasons why Polkadot could be the next altcoin to hit a new all-time high
Reasons why Polkadot could be the next altcoin to hit a new all-time high
Polkadot (DOT) and Kusama (KSM) skyrocket in price after attracting $30M in funding
Polkadot (DOT) and Kusama (KSM) skyrocket in price after attracting $30M in funding
Polkadot ETP hits Swedish stock market
Polkadot ETP hits Swedish stock market
Raise a PINT to Polkadot’s new index token: Six top projects sign up
Raise a PINT to Polkadot’s new index token: Six top projects sign up
Cross-chain DEX to be deployed on two layer-two solutions on Polkadot
Cross-chain DEX to be deployed on two layer-two solutions on Polkadot

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 60.4% 80 $16 978.70 4.39% 2.88% $326 335 954 931 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 63.2% 79 $1 272.58 7.65% 9.73% $155 730 706 390 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.2% 1 $0.999717 0.01% 0.07% $65 344 160 805 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 70% 65 $303.20 2.45% 11.12% $48 502 460 386 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 93.2% 1 $1.000139 -0.01% -0.03% $43 277 644 672 USDC 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 96% 1 $1.000531 -0.02% -0.04% $22 382 168 682 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 67.2% 66 $0.404716 4.85% 7.75% $20 353 202 189 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 58.8% 85 $0.107996 6.28% 33.79% $14 327 928 052 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 59.2% 81 $0.317149 3.18% 0.58% $10 922 533 679 ADA 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 94.8% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Polygon (MATIC) MATIC Polygon predictions 64% 72 $0.870461 4.66% 0.89% $7 602 885 646 MATIC 7 days price change
12 Polkadot (DOT) DOT Polkadot predictions 64.4% 67 $5.45 5.72% 1.92% $6 217 714 859 DOT 7 days price change
13 Litecoin (LTC) LTC Litecoin predictions 64.4% 74 $78.90 4.47% 1.74% $5 659 018 434 LTC 7 days price change
14 Dai (DAI) DAI Dai predictions 90.8% 1 $0.999966 0.01% -0.06% $5 641 163 245 DAI 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 68.4% 66 $0.054055 1.60% 6.42% $5 496 066 891 WTRX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.