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Polkadot Price On The Move Amidst Parachain Auctions, Can DOT Price Hit $50 price Mark!

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Highlights

    Polkadot Parachains are all set to go live at the auctions and hence the native token DOT and KSM could be impacted at the highest

    Polkadot price appears to gain huge bullish momentum as its currently swinging in a critical zone, a breakout from here could ignite a rally towards $50

 Amidst the release dates of parachain auctions, Polkadot and Kusama saw a bullish pattern with gains rising to 20 and 30% resp. As we are aware of the fact that parachains are an inherent property of Polkadot which enables the platform to be an interoperable network.   

Parachains are the second layer, comprising individual blockchains all connected in parallel. These allow multiple chains to run parallel, enabling scalability and increased transaction speed. These can also communicate with each other preventing the main relay chain congestion. However, one can easily buy parachains and customizable according to their needs.

Also Read: Ethereum Miners Balance Tripled To 243.12K ETH: Will ETH Price Rally Hit $5000!

What do you need to know about the auctions?

The second batch of the sixth parachain auctions begins from 12:00 pm GMT of 1st September and will be scheduled on 8th, 15th, 22nd, and 29th of September respectively. The auctions are conducted in slots as the relay chain can support up to 100 parachains.

During the auction, the platform maintains bidder anonymity and the bidding value remains vague to other bidders. The process is carried forward by crowd loans, by which users can vote for projects by locking up DOT tokens for a designated term. Crowd loans are a way to bootstrap funding for projects that are selected to fill in the slot. 

A longer lock-in period results in a higher chance of winning the bid. The lock-in period ranges from 6 – 48 months as said by an analyst and a Polkadot proponent, Dan Reecer. The selection of bidders is through random candle-stick auctions. Moreover, bidders receive parachains immediately after the slot confirmation. However, provided things fall into place as expected.

Also Read: XRP Price To Explode In Next 24 Hours, Will It Smash The $2 Mark?

Polkadot Price Analysis, How High Can It Surge?

Polkadot price received immense trader attention in the past trading day with the rounds of the auction circulated in the space. As mentioned, the DOT price rallied more than 25% and smashed the $32 mark. However, currently, the price is experiencing a slight pullback, which will flip soon.

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The DOT price chart showcases the formation of a bull flag as an outcome the price could propel with a decent margin. The price needs to clear the immediate resistance levels at $31.5 and head strongly towards $39 to hit the ATH. 

In conclusion, it is worth noting that Polkadot is rising as an option for some of the interesting blockchain-based applications. The main attractive feature of the auctions remains within its scarcity of slots. Parachains are about to bring in significant changes to the crypto space. And hence with each network upgrades, the DOT price also tends to surge. 

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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