Despite the selling pressure, Polkadot is rallying hard on the back of solid fundamentals. With a market cap of over $36 billion, Polkadot is for sure trending strongly in the cryptocurrency space. It has recovered most of its losses from last week’s market-wide dip and is currently trading at $35.55.
What is Polkadot (DOT)?
Polkadot is a decentralized financial platform that enables users to transfer their tokens from the DOT platform to other networks. Its ability to interact with other chains makes it possible for developers to run decentralized and secure web applications on it. Because of this, it has become one of the top-performing cryptocurrencies in 2021.
Polkadot was founded by Gavin Wood, Robert Habermeier, and Peter Czaban. The trio is also involved with the development of the Web3 Foundation (W3F). The foundation funds a fully functional and user-oriented decentralized web. It is because of W3F that dAPPs like Metamask can work seamlessly with browsers.
What is the Current Trend of the Market?
Currently, the market is recovering from a market-wide dip that took place last week. Bitcoin lost $10,000 from its value while the market lost almost $400 billion. However, the recovery has not yet caught on. Most of the cryptocurrencies are still in the red zones. However, Polkadot is up over 30% making it quite noticeable.
Why is Polkadot Running Against the Market?
As of the time of writing, Polkadot’s price is at $36.25 with a trading volume of $4.3 billion in the last 24hrs. The market has been on an uptrend in the last week, rallying from $26 to the current $35.25. In the last 24hrs, the market has gained 2.6%.
Polkabridge has plans to deploy its platform on Polkadot. So far, Polkabridge has been running on the Ethereum network, but soon, it will be a decentralized protocol (dAPP) on the Polkadot network. Users will be able to swap their tokens on the DOT platform to other chains with ease.
KILT protocol won the auction for the sixth Parachain that ended on September 8. The seventh Parachain auction is coming soon, on September 15. Parachains on the DOT blockchain have been a great success because they get a separate ground to develop their projects and connect back to the central chain.
The up and coming cross-consensus messaging format XCM. The intention of using XCM is to communicate between consensus systems.
There is no one reason why DOT is pumping. The recent rally can be attributed to the generally strong fundamentals of the project. Investors have a positive sentiment for DOT.
Will Polkadot Continue the Rally?
Yes. Most analysts predict that Polkadot will sustain the current rally up to $50 before a correction happens. The price of DOT dropped on September 7, 2021, following El Salvador’s adoption of Bitcoin announcement as its legal tender. However, the new wave of buying pressure on DOT will take it back to its ATH price sooner rather than later.