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Polkadot launches new parachains, DOT token waiting for growth?

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Polkadot belongs to the networks that have long been among the leaders in the field of development and implementation of changes. IN 4th quarter in 2021, the DOT token was behind BTC and ETH the most purchased cryptocurrency by institutions and funds. In terms of network development, according to the company report Electro Capital placed Polkadot right behind ETH out of all blockchains, while all other projects such as Solana, Near or Avalanche lag far behind Polkadot.

Although Polkadot was not one of the projects to make an extremely high valuation during the last bull market, the facts and metrics suggest that it is a fundamentally high-quality project which is progressing and still has a lot to offer.

Polkadot launches new parachains, DOT token waiting for growth?
Development metrics within known blockchains. Source: Electric Capital

Polkadot gained more popularity thanks to parachain auctions that allowed investors through DOT tokens support start-up projects, which will become part of the Polkadot ecosystem. According to a recent report. Polkadot will launch in the near future new parachain auctions. More details will be published during August. Since in the past with similar reports the price of the DOT token used to grow the likelihood that we could see a resurgence of investor interest in Polkadot is growing.

Polkadot launches new parachains, DOT token waiting for growth?

Polkadot, Parachain Auctions and Price Evolution

According to the latest data in the last few days trading volumes increased DOT token into the top ten cryptocurrencies, as reported by WhaleStats, which reports on the status of transactions across cryptocurrency networks.

Since parachains require DOT tokens to be locked for two years, a large volume of Polkadot will be withdrawn from circulation, which, logically, can reflect on price growth if demand remains high. The metrics of Santiment, which specializes in on-chain data analysis, confirm this increased development in the Polkadot networkwhich is related to the announcement of parachains.

Polkadot launches new parachains, DOT token waiting for growth?
Polkadot network development metric. Source: Santiment

Looking at the current chart of the DOT token, we can see a slight increase in the last few hours. From a macro point of view, it is difficult to predict how far the price can rise after the announcement of the auctions, as we are in a falling market. Unless BTC faces increased volatility and a fall to $20,000, price levels come into consideration from $10.6 up to the best case scenario where the DOT token would grow up to 11.7 dollars.

Polkadot launches new parachains, DOT token waiting for growth?

 

Chart: Polkadot/USDT. 1D. Source: Tradingview

On the chart we can see that until now the cryptocurrency has been in a downward trend and its value is starting to consolidate at a price from a low of around $6 to a price of $10, within which DOT has been fluctuating for the last few months. It’s about accumulation zone, which represents an attractive price from an investment point of view. It is DOT from its maximum distant 83%

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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