- Polka dot appeared to be surfing a wave of solid social volumes as its para chain auctions approached.
- DOT gained 15% in less than three days.
Polkadot creators Gavin Wood and Robert Habermeier revealed Polkadot’s hotly-anticipated para chain auction on October 13, raising sales expectations for the 8th-ranked currency. In response to the market’s increasing demands, DOT gained 15% in less than three days.
Many in the industry believe that this is only a preview of the peaks to which DOT will fly in the months ahead.
However, this isn’t the first time the alt’s price has risen due to widespread social expectation. Altcoins typically enjoy rallies ahead of a hotly anticipated upgrade, fuelled by a highly favorable jovial mood.
For example, Ethereum saw a nearly 40% price increase before the publication of EIP-1559 on August 5. However, per week following its publication, its price began to consolidate after hitting resistance near $3300.
Similarly, before introducing its payment systems on September 12, Cardano set a new ATH amid strong expectations & social volumes. However, one week before the debut, the cryptocurrency lost over 20% of its value and did not experience any significant price rises after the introduction.
In reality, the cryptocurrency’s price has been declining since then. Just at the time of this writing, ADA was valued at $2.20, a decrease of 26.38 percent from its all-time high. This tendency raises worries as to whether the Department of Transportation may suffer the very same fate.
Polkadot appeared to be surfing a wave of solid social volumes as its para-chain auctions approached. Unfortunately, in the case of cryptocurrencies, the sizeable social book has not been a big motivator for price. Furthermore, because Kusama’s post-auction release period resulted in the cryptocurrency losing nearly 68 percent of its value, there has been significant doubt regarding DOT’s rise.
However, on October 14, Polkadot whale and prominent community leader Donnie BigBags announced that the Polkadot-Kusama bridge would be completed before the end of the year. This would elevate Kusama to the status of “more than simply a test net.” It has the potential to resolve the Polkadot network’s recent interoperability difficulties. This might help the web, and hence the alt’s pricing.
Although DOT’s long-term path is solid for several reasons, the stock was down 0.54 percent on its daily chart just at the time of this writing. In addition, the alternative has been recording supported for the previous three days, suggesting that there may be some consolidating ahead.