The host of Coin Bureau, a popular channel among the cryptocurrency community, says that a highly anticipated development at Polkadot could take the value of DOT to new heights.
The trader, known by the alias Guy, tells his 1.42 million YouTube subscribers that Polkadot may be poised to experience bullishness following the launch of parachain slot auctions on the blockchain.
“The glimmer of hope here right now is that DOT has remained fairly stable in recent market dips compared to other major cryptocurrencies.
There is also a key milestone that could easily push the DOT to all-time highs; which means Polkadot’s own parachain slot auctions are the future.”
Parachains are layer-1 blockchains connected to the Polkadot network. The auction determines which blockchains will integrate into Polkadot’s transit chain to access the network’s interoperability features. Investors backing a particular blockchain will have to bid with DOT tokens to try their luck at securing a parachain slot.
The analyst states that parachains should initially be released at the end of Q3, but DOT was delayed due to incomplete auditing of the parachain code.
Guy claims that the delay in the parachain audit may have hindered the price performance of DOT in recent months, but as the crypto market restarts its uptrend, investors can expect more bullish sentiment.
“It all comes down to repeated delays to the parachain slot auctions that should have started months ago. Polkadot has already met the prerequisites for this to happen, and I personally find it hard to believe they were held back by an audit. Polkadot’s developers, I think, are waiting for the right moment to make the announcement.
Between May and August, the crypto market did not look that promising. Running parachain slot auctions during this time would not have been a smart move as the hype card in DOT’s hand could only yield unsatisfactory percentage gains. Also in September, the Chinese government put pressure on crypto. Running parachain auctions back then would have been extremely disrespectful to all Chinese investors who were eagerly waiting for them.
Now we are in October. The crypto market has risen, Gavin is back on Twitter, and as I mentioned in the introduction, even though Bitcoin is currently on the agenda, the return to altcoins is getting closer and closer. When that happens, it will be the perfect timing for Polkadot’s parachain slot auctions; So I wouldn’t be surprised if the first lap starts then.”
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.