Polkadot has seen a lot of activity recently, as it is becoming a central hub of Decentralized Finance (DeFi). This has been supporting the native token, DOT, and it helped push it to new all-time highs yesterday. Cryptocurrencies have stagnated recently, most likely consolidating October’s gains before the next bullish move.
But, Polkadot is not waiting for the crypto market to regain its momentum. Polkadot has its own momentum, which pushed DOT/USD above May’s highs yesterday and above $50, printing a high of $53.30, according to my broker’s platform, as buyers remain in control.
DOT/USD has rallied more than 25%. The surge in this cryptocurrency comes amid the impending vote, which will allow parachain auctions on the network. So far, the vote is unanimous, with over 53,000 DOT holders voting in favour of the parachain auction and none voting against it.
After this gets approved, developers on the Polkadot network will be able to register their projects on the parachain and get funding for their projects via crowdfunding loans from within the Polkadot community, as of November 4. When the Polkadot Council gives the green light, the Polkadot network Runtime will be upgraded to v9122.
Parachain auctions decide which project will be next in the Polkadot blockchain. Since parachains operate as independent substrate blockchains it is really important to connect, in order for a project to be successful. The registration to the parachain makes it possible for projects to launch crowdloan funding. The latest slot in Kusama’s parachain auction, which raised around $45 million dollars in KSM, was Picasso, which is both a cross-chain and a cross-layer (1-2) interoperability platform.
Polkadot coin was already bullish until yesterday, with the 20 SMA (gray) acting as support, which shows the strength of the uptrend. But, the bullish momentum has picked up further pace and the price has surged higher, increasing from around $42 to above $53. So, this cryptocurrency has gained more than 500% in value since late July, and it is expected to make further gains, as the momentum remains positive.