Crypto News

Polkadot price pops on Coinbase Pro listing, $2mm funding, and parachain slot auction

Yerevan (CoinChpater.com) – DOT, the native token of Polkadot, a heterogeneous multi-chain ecosystem, jumped 18 percent following a cluster of supportive news.

The first positive news in the chain of events came on June 8, when Gavin Wood, the founder of Polkadot and co-founder of Ethereum, announced the upcoming launch of Kusama parachain auctions.

Kusama parachain auctions

Kusama, also known as the “Canary Network,” is a testnet blockchain network operating inside the Polkadot ecosystem. It allows projects aiming to function atop the Polkadot blockchain to run sandbox tests before their full-scape deployment.

The parachain auctions, in Mr. Wood’s words, are a “market-efficient way of selecting which parachains will be added to the Kusama Relay-chain and have their functionality become a part of the Kusama network.” 

There will be 100 auctions for the parachain slot in the Kusama network. Each of such auctions would last a week and require a minimum of 1 million DOT, or around $25M. The first auction is scheduled for June 15, 8 a.m. ET. The winners will be chosen and announced on June 22 at 7 a.m. ET.

The good news for Polkadot don’t stop at parachain auctions.

Parallel Finance boosts Polkadot

Parallel Finance, a decentralized lending startup service, raised $2 million to make DeFi (decentralized finance) a bigger part of the Polkadot ecosystem. The platform commented on the insufficient lending protocol exposure in Polkadot.

According to Parallel Finance founder Yubo Ruan, they have seen a rising demand for DOT/KSM holders to borrow and lend their tokens. The investment will also back the progress of the parachain auctions.

Parallel Finance will have compound staking and zero-collateral options for DOT and KSM holders, as well as fixed-rete loans for parachain auctions. The protocol will run on both Polkadot and Kusama.

New listing

As the cherry on top of positive reports, Polkadot has scored a listing on Coinbase Pro.

The leading crypto exchange platform announced it has made the 9th largest crypto available only to trade for its professional users. The platform offered its Pro traders to transfer their DOT into Coinbase wallets starting Monday, June 14. Trading will begin June 16, at or after 9 a.m. Pacific Time, “if the liquidity conditions are met.”

According to Coinbase’s usual procedure, the platform first introduces the token to its Coinbase Pro users. If and when the ‘test run’ is successful, the wider audience of Coinbase users gets exposure to the token.

Read more: DOT Rises Over 50% WTD On $30 Million Polkadot Fund Launch

All the positive developments led DOT to a bullish break with an 18 percent jump.

DOT Daily Chart

DOT daily chart registered a downward correction after the rapid jump in the past 48 hours. The DOT/USD exchange rate stood at $24.7 in the London session Tuesday. The recent boost shot the price above the 20-day exponential moving average (EMA-20). DOT sought support from the EMA-20 after consolidation.

DOT shot above the EMA-20. Source: DOTUSD on TradingView.com
DOT shot above the EMA-20. Source: DOTUSD on TradingView.com

The token has been trading in an ascending channel formation since late May.

The bottom margin of the channel kept DOT from crashing. The upper trendline capped the bullish attempts. The ascending channel is a continuation pattern. It predicts the continuation of a former trend once the formation is complete. DOT had been bearish before the channel, so there’s a chance for more bearish losses afterward.

However, considering the substantial amount of positive news for the Polkadot ecosystem, the token might break out of the pattern with a bullish trend.

Read more: Polkadot (DOT) Crashes Over 15% Overnight, Risks Further Sell-Offs

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Lilit Chichyan

Lilit is an enthusiastic writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience. Lilit is creative and fast and has the experience of writing for both big marketing companies and small websites and blogs.

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