Polkadot-based Parallel Finance raises $22M; DOT jumps in response

Polkadot, DOT, parallel finance
image from Twitter.com

Key Polkadot takeaways:

  • Parallel Finance protocol atop Polkadot blockchain raised $22 million in the latest equity round.
  • The adoption of Polkadot gave DOT a 15.5 percent boost.

YEREVAN (CoinChapter.com) – Polkadot-based decentralized finance (DeFi) protocol Parallel Finance raised $22 million in series A funding round, which led the DOT token to gain 15.5 percent in the wake of the announcement. The protocol offers lending and staking services atop Polkadot for now but plans to launch its mainnet.

Parallel Finance

In hindsight, Parallel Finance is in testnet on both Polkadot and Kusama networks. It offers leverage staking and liquidity mining as its two main services.

The protocol’s equity round resulted in substantial fund inflow from several investors. Polychain Capital, a blockchain investment firm, led with the largest share (unspecified), followed by Lightspeed Venture Partners, Slow Ventures, Alameda Research, Blockchain Capital, and others.

The equity round valued the project at $150 million. Parallel Finance also raised $2 million in June, the total investments clocked at $24 million, which is noteworthy for a five-month-old project. But the protocol has plans to gain more funding through Polkadot’s crowd auctions.

In detail, the Polkadot ecosystem currently has only 100 parachain slots available for various projects. To occupy one of the slots, any project has to go through a crowd auction and win it.

Also read: Polkadot (DOT) settles near a two-month high on parachain auction FOMO.

Yubo Ruan, the founder of Parallel Finance, commented on the equity round.

“The reason that we bring a lot of investors – especially Polychain leading the round – is because they are one of the largest DOT holders and Kusama (KSM) holders. They want to have yield in this space, they want to have use of DeFi protocols”

said the executive.

He also added that he would consider another funding round once the protocol has TVL (total value locked) traction. However, the recent series A funding was enough to give Polkadot’s native token DOT a boost.

Also read: SOL continues vertical rally with 21% gains on Solana’s NFT buzz; crash ahead?

DOT daily chart

DOT gained 15.5 in the past 24 hours, after the positive news for the Polkadot ecosystem. As a result, the DOT/USD pair traded at 28.7 in the Tuesday session. However, the digital asset met a confluence of resistance on the uptrend. A significant support-turned resistance bar lies at approximately the $28.8-30 level.

In addition, the 200-day simple moving average (SMA-200) topped the price action for the past two days.

DOT gained 15.5% in 24 hours. Source: DOTUSD on TradingView.com
DOT gained 15.5% in 24 hours. Source: DOTUSD on TradingView.com

However, DOT managed to break over the SMA-200. The upcoming sessions will show if it can also conquer the resistance bar ahead with any confidence and possibly retest it as support.

Also read: Cosmos (ATOM) rallies 35% despite the altcoin cool-off; what’s behind the uptrend?

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