Having multiple parachains supporting their decentralized web goals has been one of the reasons Polkadot [DOT] has remained relevant in the crypto ecosystem.
In fact, its growing ecosystem has left the comfort of its network to contribute to the new development of the blockchain.
While many may have considered the Polkadot architecture limited, the multi-chain network has proven otherwise. in his last to updatePolkadot announced the rollout of several new blockchains with ParityTech.
According to the statement, new parachains will be put into action to enable organization. These parachutes, if successfully activated, will allow the Polkadot community to rule without taking ages for third party approval. So has this put DOT in a better position?
What is the circumstance?
According to data from Santimento, TOD development activity has ramped up extremely nicely since August 21st. However, the same cannot be said of its price, which has plummeted 11.31% in the last seven days.
CoinMarketCap revealed which DOT was trading at $7.58 on August 24. But will the development of the parachute trigger a positive turn of events?
Chart indications showed that DOT has some short-term potential. Interestingly, this indication was not of a specific momentum as the Relative Strength Index (RSI) was in a neutral position. At the time of writing this article, its value was 48.97.
Another thing revealed that the DOT could be the main one for a price increase instead of a decrease. The reading of the Moving Average Convergence Divergence (MACD) favored the buyers.
In simpler terms, the potential for DOT to break above current levels was greater as momentum from buyers (blue) maintained their stance on the situation from sellers (orange).
Although the signs of an uptick were not as visible, the existing parachains on the Polkadot network appear to be in their prime. According to PolkadotInsiderThese actions have drawn the attention of investors.
Similarly, the project has led to an increase in the count of DOT holders.
These developments have affected Polkadot in other areas as well. Another look at Santiment He showed that DOT’s social domain was better than it was on August 22. The same can be said for their social volume.
With these metrics, investors can surmise that DOT may be gaining more interest and more momentum.