Why Polkadot is the Highest Rising Cryptocurrency Right Now
According to charts on TradingView, Polkadot has risen by 20% in the last 12 hours among the top nine cryptocurrencies. As of this writing, it now trades at $27 having previously traded at $22 twelve hours ago.
Polkadot Keeps Rising
Polkadot’s rise coincides with the bitcoin’s price rally with the leading cryptocurrency now trading at over $41,000 for the first time in about 14 days.
Polkadot chart. Source: TradingView
Analysts from Santiment (a crypto market insight firm) opined via Twitter that the Polkadot coin has been on the rise because DOT developers have been active recently. The team has launched several tests, including Parachains on Kusama. Although the Parachains are being launched at a reduced level.
The team is also planning to launch what it has termed the Parachain auction. It is an auction where several projects must bet and the winner will be incorporated into the Kusama environment.
Gavin wood (Polkadot founder and CEO) has revealed that the auctions won’t end till the end of next month. The Polkadot team can test each stage of the Polkadot network on the Kusama environment before a full Testnet launch.
Santiment Analysts tweet. Source: Twitter
One other possible reason for the continued price increase of the dot is that it is now listed on Coinbase Pro (a US-based crypto exchange firm). While DOT deposits can be performed from today, trading will start at about 9 am PT time on June 16, 2021.
Esteemed blockchain and crypto journalist, Collins Wu, with the Twitter handle Wu blockchain confirmed that the DOT team would release approximately 5.6 million DOT on June 19.
Collins Wu Tweet. Source: Twitter
“The Coinbase Effect”
Crypto analytics firm, Messari reports that tokens listed on the Coinbase exchange usually experience an average of 92% returns within sex days of the listing. Termed the Coinbase effect because tokens listed on other exchanges (such as OKEx, Gemini, FTX, Kraken, or Binance) don’t usually average such returns.
Wood and his team aim for Polkadot to be the bridge that links separate crypto networks. Thereby, enhancing scalability and security in the crypto industry. For example, it seeks to establish interoperability between Bitcoin and Ethereum.
However, wood’s technology is yet to accomplish this goal. His competitors within this space are Solana and Thorchain. Once the Coinbase listing is completed, users can trade on Polkadot’s and Kusama’s native tokens
Despite being in infinite supply, investors keep buying the dot believing that its Coinbase listing will expose it to institutional investors which will lead to a rush in demand and a price rise. Coinbase has already confirmed that inbound transfers for DOT will be available starting from today in countries that support trading.
The exchange also revealed that trading (order placements and no-order fulfillments) will only start tomorrow (Wednesday) provided liquidity conditions are met and DOT trading will commence with a post-only phase then followed by the limit-only and full trading phases.
Coinbase tweet. Source: Twitter
Currently, Polkadot’s trading volume is about $3.3 billion, while its market cap is about $26 billion.
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