Blockchain interoperability has received a significant boost after the launch of the much touted parachains on the Polkadot (DOT) network, ushering
Blockchain interoperability has received a significant boost after the launch of the much touted parachains on the Polkadot (DOT) network, ushering in far higher levels of scalability for projects. At the time of writing, DOT/USD is trading at around $24.54.
More on Polkadot Parachains
The first give parachain auctions have concluded so far, letting individual networks or parachains run in parallel towards helping the developers realize their vision for a harmonized, interoperable ecosystem. Acala, Moonbeam, Parallel Finance, Astar and Clover are the first five parachains to go live on Polkadot’s network, offering applications across DeFi, investments and loans.
The parachain launch comes after five years of intense development by the team behind the blockchain, letting the winning projects in the auction lease slots on the network’s Relay Chain for a period of 96 weeks. Polkadot’s Relay Chain will handle the coordination of consensus and communication between the different parachains.
Ethereum’s co-founder and Polkadot’s founder Gavin Wood observes, “The parachain model was created with the belief that the future of Web 3.0 will involve many different types of blockchains working together. Just as the current version of the internet caters to different needs, blockchains need to be able to provide a variety of services. Parachains solve this.”
Additional Fundamental Developments That Can Affect DOT
In more encouraging news that can give investors some more confidence towards the DOT token, smart contract layer supporting the Polkadot blockchain framework, Gear Technologies, has successfully concluded a $12 million fundraising round. The round led by Blockchange saw the initiative gain investments from leading VCs, including Three Arrows Capital, Lemniscap, senior executives from Web3 Foundation and Parity Technologies and even the Polkadot founder, Gavin Wood.
However, these strong fundamentals have been unable to deliver much strength to the DOT coin, which continues to trade weak amid the bearish mood in the wider crypto market. Having been pushed out of the top 10 list of cryptos by market cap, institutional investors have also pulled out $2.5 million from Polkadot related funds over the past week, further exerting pressure on the cryptocurrency amid the ongoing rout.
DOT/USD Technical Analysis
Taking a look at the 4-hour chart of DOT/USD, we find a bearish bias among almost all of the moving averages. However, leading indicators MACD and momentum suggest some buying interest among investors as well.
DOT/USD
Polkadot’s price is holding under the pivot point at $26.21 but sits above the immediate support at $22.58. Let’s see if news of the parachains’ launch can bring more buyers into the market to take DOT past the pivot point.
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