- Polkadot launched its first parachain slot auction on Nov 11.
- DOT jumped 5% in response, hinting at a further gains.
YEREVAN (CoinChapter.com) – DOT, the native token of interoperability network Polkadot, gained 5% in the New York session Thursday, as Polkadot announced the launch of its much anticipated first parachain slot auction.
In hindsight, a parachain is an application-specific structure on the Relay Chain, and it can run parallel to other similar parachains with their own economies and tokens. At the same time, the slot auction is designed for projects that wish to build on Polkadot.
The network specified that there are a total of 100 slots available on the Relay Chain, and to fill a spot, projects have to compete in an auction. A similar procedure took place on Kusama, Polkadot’s Canary Network, earlier in 2021.
Any project that wishes to register a parachain slot can create a new crowd loan campaign by “depositing a specified number of tokens.” Moreover, projects can use the campaign to participate in auctions for other slots if they fail to win the first time.
The Polkadot network announced the first auction launch hours ago, providing further details on the participants. Moreover, the currency auction is the first in the series of 10 auctions, ending on Nov 18. The winner will be announced shortly after.
As the auction went live, Polkadot’s native token DOT picked up the pace and put on 5% after a choppy performance in the previous days.
Polkadot(DOT) Daily Price Chart
The DOT/USD pair has trended up through the first week of November. It scored a new all-time high of $55.0 on Nov 4, after Polkadot announced the upcoming slot auctions. After that, however, the surge came to a halt, and the price action moved sideways before giving in to the selling pressure and losing 13%.
The Thursday uptrend might continue if the hype around the Polkadot parachain launch boosts the traders’ confidence in the network. Some experts see the bullish scenario as possible. One of them was Lark Davis, a crypto analyst with an extensive following. Mr. Davis tweeted his stance on DOT, comparing it to Cardano’s surge earlier in Q3.
He pinpointed the target price for DOT at $100, which is a 108% uptrend from the current value.
As of publication, DOT traded at $48.2 and retested a significant support bar at $45.0-48.0. If the digital asset holds the support, it could continue the quarterly gains. Currently, Polkadot is the 8th largest cryptocurrency, with a market cap of $3.4 billion.