Bitcoin is down 2.3%, Ethereum almost 4% and Cardano 4.5%, as of this writing, while Solana had depreciated more than 11% on the daily chart.
Among the top ten currencies on the market, however, Moles though he didn’t seem to be doing that bad. Ergo, the question: what is holding up the DOT price and is there hope for a full recovery?
Although the larger market was driven by the momentum of Bitcoin during this rally, some cryptos such as Cardano, Solana, and Polkadot managed to highlight their separate trajectories independent of the larger market.
Despite the fact that almost all currencies endured the brunt of the latest sudden drop, the likes of DOT were on the mend despite the corrections. However, the alt performance has not been boosted in isolation. It has been supported by multiple social and developmental factors.
Collaborations are the way to go
In the crypto space, a highly competitive market, collaborations and development are the key to growth and many ecosystems have benefited from the same lately. Polkadot is also very active on this front. At the time of writing this article, the PolkaBridge news, an all-in-one decentralized financial applications platform that integrates with Polygon’s full-stack scaling solution, was an instance of the same.
Furthermore, its price increase can also be attributed to the Polkadot Hackathon that started on September 8. In addition to that, a motion seeking funding for a Treasury proposal for the Polkadot Ecological Research Institute. This would pave the way for other development-focused updates in the future.
The DOT price, after the sudden drop, began to rise on September 8 and experienced an increase of almost 40% over the next two days from a local low of $ 22 on September 7. In particular, the sixth Parachain auction was held until September 8, after which, the price started to rise.
The launch of parachutes, Layer 1 blockchains expected in parallel to Polkadot and Kusama Networks, also contributed to the increase in DOT.
What do the metrics say?
On-chain activity at DOT has been booming mainly due to ecosystem-focused updates and high social volumes due to the recent parachain auction. Polkadot’s metrics presented a healthy picture for alt, as DOT’s development activity saw steady growth. The strong development activity has been supported by the retail crowd, equally supported by Polkadot’s high trading volumes.
According to Lark Davis, “The parachutes, when they are announced, will probably send it [DOT] at $ 100 “. While this seems like a leap too far, when looking at the current DOT price trajectory, it won’t be a surprise if this happens in the long term.
Finally, after the latest price drop, the altcoin’s open interest has gradually increased over time, a healthy sign for growth. Therefore, it seems that Polkadot will stay for a while. Also, a broader market rally could further boost the alt price.
This is a machine translation of our English version.