InstaForex

September 1, 2021

Is It Time For Polkadot (DOT) To Soar High?

 Polkadot (DOT) showed a bullish signal after recording a price decline of up to $ 10.36 on July 20, before jumping 205% to a daily high, $ 31.70 on August 31.


This positive movement is to some extent driven by several factors that are closely related to the network ecosystem.


Auction of parachains slots

Bidding for projects to fill the limited slots of parachains available in the Polkadot ecosystem is starting again.


This time Kusama (KSM) is reportedly in the process of starting the auction of parachains slots available in Polkadot after the end of the first batch selection at the end of July.


Meanwhile, the second batch will start on September 1.


This means consumers will vote using DOT tokens, which in turn will cause supply in the cycle to decrease and put pressure on DOT prices.


The Polkadot parachains auction will begin once all auctions in the Kusama network are completed.



Expect more projects

The Polkadot ecosystem bears a large amount of protocol and infrastructure support over the past year.


With the anticipation of a parachains auction in Polkadot soon, this means the ecosystem will continue to expand its capabilities by accepting more new projects.


Again the Kusama parachain so far is running smoothly without any constraints encountered during the broadcast.


The 24 -hour trading record is soaring

On Aug. 31, the DOT saw record trading in 24 hours rise more than 300% to a record high, $ 5.41 billion, driven by investor excitement with the auction of parachains by Kusama.


If Kusama once again records the auction launch process and launches the process to start in Polkadot, DOT demand is unlikely to increase, causing its prices to soar as well.


At the time of writing, the DOT recorded a $ 29.11 price increase of nearly 9% in 24 hours. While KSM recorded a value of $ 388.58, an increase of more than 21%.