Polkadot (DOT) rallies to new all-time high after announcing its long-awaited parachain slot auction

ASSAM (CoinChapter.com) — Polkadot blockchain ecosystem’s native token, DOT, rallied to a new record high of $53.25 a day after its core foundation revealed a motion to launch parachain slot auctions on Nov 11.

The announcement came via a tweet Monday, noting that a so-called Polkadot council passed the parachain slot auctions for a further public referendum. The message read:

“If passed, parachain teams will be able to register their parachain and open their crowdloan on Nov. 4, 2021 at approx. 19:15 CET.”

Traders raised their bids in the DOT markets following the announcement. In doing so, they pushed the Polkadot token price by more than 16% on Nov 1 and by another 7% the next day to eventually break above its record high of around $50. The jump also appeared after DOT closed October up about 49%. 

The Polkadot price rallies for the previous month were mainly driven by the parachain registrations, which would open doors for multiple firms who want to build their applications on the Polkadot blockchain. However, for these projects to go ahead with their ideas and implement them on the Polkadot network, they will have to participate in the auctions and gain access to the limited number of parachain slots.

Analyst turns extremely bullish on Polkadot 

Lark Davis, a renowned YouTuber and crypto trader, gave a bullish insight into the price action of DOT/USD. In a recent tweet, Davis claimed that Polkadot could easily reach a minimum of $100 in the short term once the parachain auctions go live on Nov 4. 

The analyst compared Polkadot’s current scenario to Cardano’s (ADA) bull run in August when smart contracts were deployed on the Cardano network. He further claims that a similar scenario in which ADA surged by more than 100% might recur.