Can Polkadot Revert Back As Cross-Chain Messaging Is Active?

By May 13, 2022DeFi
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  • Polkadot may find a cause climb up as cross-chain messaging brings in latest interoperability, options to mint aUSD stablecoin.
  • Next stage of interoperability within ecosystem is all prepared to kick off as cross-chain operationality is about to become active.
  • As of now, DOT, indigenous coin of Polkadot ecosystem, was trading at a market value of $10.91 at the time of writing.

Polkadot Unchained

Development inside Polkadot (DOT) ecosystem is steadily been unfolding over previous year and a half, and the efforts put in by devs is finally getting fruitful as parachain auctions ended and initial chains released on mainnet.

The upcoming stage of interoperability within ecosystem is all prepared for a flag off now that cross-chain functionality is going live. This next move will enable parachains based on Polkadot to communicate with each other and mobilize assets among chains.

Up to this point, DOT had restricted use cases and was basically out of the way on its own network without much functionality. Its prime functions involve governance, contribution in parachain crowd loans and staking, which assisted reducing circulating supply but did little else to actually spark demand.

The initiation of cross-chain communication allowed DOT transfers to several parachain networks as well as total use cases for DOT crypto on parachains such as Astar Network and Moonbeam.

As this article was being written, DOT was trading at a market value of $10.91, down by around 20% during the past week.

Latest Use Cases

A notable utilization for DOT remains the escalating popularity during previous months is minting stablecoins and staking by utilizing cryptocurrencies as collateral.

DOT can now be mobilized to DeFi-concentrated Acala parachain and deposited in its liquid staking contract by interchanging LDOT, which can be utilized as collateral to mint aUSD, the indigenous decentralized stablecoin of Kusama and Polkadot.

DOT can also be utilized in several DeFi applications involving yield farming, borrowing and lending. As the initiation of cross-chain communication spreads throughout the Polkadot ecosystem, further uses for DOT are likely to surface, specifically as parachains unveils escalated functionality.

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