DOT price hits one month high on Polkadot blockchain growth hopes

Polkadot DOT Ethereum
Image by Vladimir Kazakov on Adobe Stock

Key Takeaways

  • Web3 Foundations made it easier to apply and recieve a grant for building a dApp in the Polkadot ecosystem.
  • Pokladot created a pole to determine whether they should increase nominators’ minimum bond.
  • DOT rallies against the uplifting news.

YEREVAN (CoinChapter.com) – Polkadot ecosystem’s native token DOT has piled 23 percent since Friday, reaching $25.4, before slipping to $24.9 ahead of Monday’s New York session. The uptrend came on the ubiquitous recovery wave across the altcoin market and other fundamental developments.

What’s new with Polkadot?

Polkadot grows as developers integrate more decentralized apps (dApps) into its ecosystem. Web3 Foundation, a grants program that funds software development atop Polkadot, united two of its programs: General Grants and Open Grants, to facilitate creating those dApps.

The Web3 Foundation claims that the merge will simplify the application mechanism and make it easier for participants to build apps atop the Polkadot blockchain. However, any project aiming to obtain a grant must comply with certain guidelines, which the Foundation listed in the announcement.

They include basic parameters like quality of research, an existing business model, and prior experience in the field. Funding new dApps is a way to increase exposure to developers and subsequently raise the platform’s popularity.

Also read: Polkadot’s DOT among top 5 held crypto-assets across hedge funds, research shows.

Moreover, the Polkadot ecosystem opened a vote on increasing nominators’ minimum bond on Polkadot. The ecosystem has 22,500 nominators (participants in the staking mechanism, responsible for appointing their stake to the validators).

The announcement claimed that the current configuration of the staking system hinders the growth of this number.

The proposal has the goal to increase the minimum bond to allow new nominators above the threshold to participate in the network’s security mechanism, and for less staked nominators to be chilled. Note that after 9080, the existing nominators can always update their preference at all conditions.

reads the announcement

At the moment, the validators almost unanimously voted FOR the update, although the pole is still open.

Also read: Why do the US dollar and Bitcoin keep gaining global momentum

Growing adoption

As one of Ethereum’s prime rivals, Polkadot received more attention from traders in recent days, while the prime altcoin’s London fork upgrade is getting closer.

In hindsight, the latter includes a series of improvement proposals that will reduce the notoriously high fees on the platform. The most substantial upgrade is the switch from proof-of-work to a proof-of-stake consensus mechanism.

Polkadot ecosystem operates on parachains. Parallel chains or parachains are a mechanism that allows higher scalability and less congestion as each dApp runs on its chain. Higher scalability and lower congestion are what Ethereum aims to achieve with the upcoming upgrade.

As the much-anticipated London fork is lacking behind schedule, traders shifted their attention to Polkadot among other Ethereum rivals. As a result of increased exposure, the DOT charts saw green candles again after a short consolidation period.

Polkadot's DOT rallies 23%. Source: DOTUSD on TradingView.com
Polkadot’s DOT rallies 23%. Source: DOTUSD on TradingView.com

Moreover, the smart contract ecosystem advanced against Ethereum as well. DOT gained 12 percent in the DOT/ETH pair, reflecting an optimistic outlook from the traders.

Polkadot vs. Ethereum. Source: DOTETH on TradingView.com
Polkadot vs. Ethereum. Source: DOTETH on TradingView.com

The positive news for the platform and the belated launch of the London hardfork facilitated DOT’s bullish price action. In addition, the recovery wave across the altcoin market also assisted the digital asset on the rally. As a result, Polkadot gained 23 percent in 4 days and ranks number 9, according to its market cap of $22.8 billion.

Also read: Ethereum to power Microsoft’s anti-piracy plans with Argus.

How useful was this post?

Click on a star to rate it!

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com