Polkadot is the leading multi-chain blockchain network in the blockchain crypto ecosystem. With a multitude of digital currencies operating on hundreds of different blockchains, the cryptocurrency market is thrilling but disparate.
Communication and compatibility between these systems is, unsurprisingly, a stumbling block. Polkadot is trying to resolve this problem. Let’s take a closer look at Polkadot and why it has risen to the top of the cryptocurrency rankings this year.
The founders created Polkadot protocol with the goal of linking various blockchains into a single network. It is a progression of other blockchains such as Ethereum and Cardano in that it allows anyone to create custom blockchains (rather than just custom tokens) on its platform, with the additional benefit of uninterrupted, fast, and honest data exchange between them.
Parity Technologies initiated Polkadot as an open-source project in 2017. Polkadot, like Cardano, has an Ethereum alumnus in its founding group. Polkadot is the brainchild of Dr. Gavin Wood, co-founder of Ethereum and author of the Solidity programming language.
On the Polkadot network, there are already a number of live blockchains, ranging from decentralized exchanges to security token platforms and even decentralized autonomous organizations (DAO).
DOT is the network’s native token. Holders utilizes it to act as network validators, nominators, collators, and fishermen-all positions on the blockchain that make it possible for data transmission through the use of relay chains, bridges, and other constructs used to aid the function of the network. Polkadot utilizes the Nominated Proof-of-Stake (NPoS) consensus protocol, which rewards users for staking their DOT tokens.
Fundamentals
Polkadot is one of the best-performing altcoins, even though it is relatively new to the crypto scene. DOT has performed exceptionally well in the last several months and is now among the world’s top ten cryptocurrencies. The 990 million DOT tokens in circulation give it a market valuation of more than $50 billion. Its token supply, on the other hand, is unrestricted. Since July 20, 2021, DOT has risen from $11 to a new all-time high (ATH) of $50 or more presently.
Short-term Analysis
DOT regards technical levels admirably during its rise from $11 to $50+. It is with ricochets off key supports like the golden pocket and nearly every other retracement path. Should any bearishness arise, these thresholds inclines to act as significant backing. Its bearish circumstances pointing to supports at $49 and $43.
In a tremendously bearish scenario, DOT would return to $36 levels. That being said, DOT persists in setting new ATHs and the overall crypto market stays bullish. This is highly unlikely.
DOT has gained more than 20% in the last three days in anticipation of Polkadot’s parachain auctions and rollout, which will allow products to register parachains and obtain funding on the platform. They expects Price corrections after November 11, according to analysts.
DOT is a profoundly sound product that is set to perform well through 2022. DOT could potentially grow three times or more from today’s prices ($150-170 per coin) in 2022 if this cycle continues.
