Polkadot reached an all-time high on November 3rd as anticipation for the parachain auctions grows. DOT climbed the ladder all the way up to $53 before going for a price correction at the time of writing this article. The parachain auctions allow developers to acquire funds for their projects within the community. Learn all about the network is “What is Polkadot”.
Polkadot Rising
Although DOT has not been having strong rallies lately, the gradual and persistent growth continues on. The upcoming parachain auctions have the investors excited as it is an industry-first technology that can be beneficial for both users and developers. We have previously called DOT as one of the best low-risk altcoin candidates for investment.
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DOT is up 30% in 7 days with a price of $52.8 at the time of writing this article. With a market cap of over $55 billion, DOT is currently ranked as 7th cryptocurrency. Data Provided by CoinGecko.
The growth is primarily caused by the possibility of implementing parachain auctions on the network. At this stage, a governing council must first approve the upgrade. However, by the looks of it, investors are rushing to join the party.
Renowned crypto analyst Michaël van de Poppe states that the hype and momentum revolving around DOT is a bullish sign for the price.
“There’s parachains coming up. There’s hype around Polkadot. Lots of momentum here. So where should you be buying Polkadot at this instance? And we have been discussing that in the updates previously, too. The entire green zone [$35 -$37] was the critical level that you preferably want to see Polkadot sustain.” Said Poppe on YouTube.
Initially, Poppe is expecting the next target zones to be at $75 and then $115. These potential target areas are determined by the Fibonacci extension tool. An apparatus that the HiExchange technical analysis team uses regularly.
Parachain Auctions
The unique architecture allows the users to create their own blockchains. The secondary blockchains are called parachains. For a complete guide, read “What is Polkadot”.
The parachain auctions allow DOT developers to simply select a parachain, register their projects on it and receive crowd loan funding for the project.
Essentially, if approved, the auctions can potentially fund useful projects that will benefit both sides of the fence.
In terms of utility, it is too early to comment on how the apparatus will perform. However, it is essentially the hype and momentum around a certain cryptocurrency that can cause rallies in short-term.
The auctions will go live with a total of 11. There will be one auction per week.
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