Bitcoin
BTC$44 194.78

1.91%

Ethereum
ETH$2 370.51

-0.24%

Tether
USDT$1.000302

0.02%

Binance Coin
BNB$244.77

4.20%

XRP
XRP$0.687779

6.90%

Solana
SOL$76.42

5.66%

Three reasons why Polkadot is en-route to a new all-time high even after a 256% rally


15 Sep 2021

#Polkadot

Steady development and strong fundamentals suggest a DOT rally toward a new all-time high is in the making. The recent 256% recovery by Polkadot (DOT) over the past 56 days has been nothing short of spectacular. Although the price is 23% below its $49.80 all-time high from four months ago, the altcoin's $39 billion market capitalization has outperformed Ether (ETH) by 66% over the past thirty days.

Polkadot is a blockchain network designed to support various interconnected, application-specific parallel chains — known as parachains. This scalability-focused project breaks transactions up into many shards and processes them in parallel, similar to what ETH 2.0 aims to achieve.

Polkadot refers to the entire ecosystem of parachains that plug into a single base platform known as the relay chain. This base layer provides security to the network and handles the consensus, finality and voting logic. To support parachain launches, users vote for projects by locking up DOT tokens. Currently, only Kusama — Polkadot's "canary" network and an early, unrefined release of Polkadot — is holding its own auctions for these slots. Polkadot is expected to initiate the same process over the next couple of months.

Polkadot's integration to DeFi increases

Polkadot's ecosystem has been growing consistently. On Sept. 8, SubQuery, a decentralized data aggregator, raised $9 million to build Polkadot's first data aggregation layer. As an example of this integration, the Moonbeam parachain has tokens built on Polkadot's development tool (Substrate). These tokens can be sent seamlessly to Ethereum wallets and smart contract addresses. On Sept. 9, Moonbeam announced a partnership with Lido, a decentralized liquid staking derivatives protocol currently deployed to Ethereum and Terra.

The latest update came from dTrade, a decentralized exchange (DEX). After successfully raising $6.4 million in a seed funding round in May of 2021, the DEX gathered another $22.8 million market-making fund designed to provide "deep liquidity" and backed by some of crypto's most prominent market makers.

Derivatives data shows potential for a fresh all-time high

Technical analysts are quick to make price projections, but investors should analyze Polkadot's derivatives data. For example, a nonexistent futures contracts premium means that investors are not comfortable creating bullish positions using leverage. DOT's total futures open interest grew from $360 million to $685 million in 30 days. That is a positive indicator because it reflects the willingness of leverage traders to keep their long positions open despite the rally.

In futures contracts trading, both longs (buyers) and shorts (sellers) are matched at all times, but their leverage varies. Eventual imbalances are reflected in the funding rate, and derivatives exchanges will charge whichever side is using more leverage to balance their risk.

Steady protocol development will be the ultimate driver of DOT price

In the first week of September, a healthy dose of optimism surfaced because the eight-hour funding rate reached 0.10%, equivalent to 2.1% per week. Nevertheless, the situation reverted after the 35% price crash on the morning of Sept. 7. This $22.70 intraday low from a week ago might seem irrelevant since the price of DOT is above $36.00, but traders' appetites for leveraged long positions have yet to recover from this.

The most likely scenario is a "glass half full" one where investors will regain confidence as the project continues to deliver.


Related

Moonbeam (GLMR) launch brings EVM interoperability closer to the Polkadot network
Moonbeam (GLMR) launch brings EVM interoperability closer to the Polkadot network
Polkadot price moves higher as parachain auctions reduce DOT’s circulating supply
Polkadot price moves higher as parachain auctions reduce DOT’s circulating supply
Polkadot to debut parachain auctions after governance vote
Polkadot to debut parachain auctions after governance vote
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 80% 31 $44 194.78 1.91% 13.95% $864 662 582 104 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 80.4% 36 $2 370.51 -0.24% 12.72% $284 977 242 137 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.8% 1 $1.000302 0.02% 0% $90 362 894 198 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 86% 17 $244.77 4.20% 6.71% $37 130 937 126 BNB 7 days price change
5 XRP (XRP) XRP XRP predictions 84.8% 28 $0.687779 6.90% 11.78% $37 110 813 461 XRP 7 days price change
6 Solana (SOL) SOL Solana predictions 78.8% 38 $76.42 5.66% 23.68% $32 550 547 517 SOL 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 96% 1 $1.000017 0% 0.01% $24 500 256 641 USDC 7 days price change
8 Cardano (ADA) ADA Cardano predictions 76.8% 38 $0.592594 23.64% 53.34% $20 929 830 721 ADA 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 70.8% 53 $0.103093 6.13% 22.44% $14 655 575 281 DOGE 7 days price change
10 Avalanche (AVAX) AVAX Avalanche predictions 76% 50 $32.21 18.70% 46.79% $11 780 639 091 AVAX 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 96% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 TRON (TRX) TRX TRON predictions 94% 7 $0.108349 2.94% 4.72% $9 585 997 392 TRX 7 days price change
13 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 92.4% 7 $0.108050 3.07% 4.47% $9 559 528 631 WTRX 7 days price change
14 Chainlink (LINK) LINK Chainlink predictions 76% 38 $17.16 6.87% 10.20% $9 554 991 817 LINK 7 days price change
15 Polkadot (DOT) DOT Polkadot predictions 80% 38 $7.45 18.63% 35.64% $9 346 749 094 DOT 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.

© 2015-2023 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.