Polkadot (DOT) Challenges Market Drop – Here are Key Reasons for Rise

While the broader cryptocurrency market is witnessing selling pressure, Polkadot (DOT) is heading up, defying the market trend. Polkadot’s DOT cryptocurrency hit an intraday high of $37.61, up 16%.

As of press time, the DOT is trading at a price of $35.18 and a market cap of $34.7 billion, up 11%. With this rise, Polkadot retraced all its losses from last week and is trading positively on the weekly charts.

Polkadot has emerged as a powerful decentralized financial platform that facilitates token exchange from the DOT platform to other blockchain networks. Also, the Polkadot ecosystem has seen major improvements with several parachain auctions.

Polkadot Parachain Auctions

Kusama parachain auctions and KSM token sales made a big splash in August 2021. Last week, Polkadot concluded its sixth parachain auction with the KILT protocol winning the last slot.

KILT is currently working to provide end users with allegedly verifiable, revocable and anonymous credentials. With this, the KILT protocol aims to boost new business models for Polkadot blockchain decentralized applications (DApps).

With multiple parachain auctions and projects like Kusama and KILT coming to Polkadot, local entity DOT is seeing a strong increase in on-chain activity. The seventh parachain auction on Polkadot will take place two days later, on September 15. It can be said that these affect the price positively.

Eight Global’s Michaël van de Poppe’s founder reiterated his price predictions for Polkadot, noting that the price of Polkadot could rise to the levels of $100-150. While the analyst has not provided a precise timeline for this, he still expects gains 3x-5x above current levels.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.