DeFi
Is Polkadot Preparing for a 100% Surge and a Spike Above $20?
Polkadot, the interoperable blockchain, remains one of the largest and most popular networks in the top 20. At press time, DOT, the platform’s native currency, is 14th, ahead of Tron and the NEAR protocol.
However, despite recent gains, it remains down 87% from all-time highs, undeniably facing a brutal market correction.
Even with this bearish sentiment, a wave of optimism is building around the future of DOT. Taking X, an analyst think not only will the coin get rid of its weakness, but it will rise, reaching over $20 in the coming months.
This confidence, the analyst said, will be mainly due to crucial developments in the broader Polkadot ecosystem.
A look at Polkadot 2.0, better on-chain governance
Among the many, the analyst believes that the upcoming Polkadot 2.0 upgrade will be a game-changer. Already, Polkadot is interoperable and scalable. However, once the new upgrade comes into play, the platform’s developers expect the network to be more interoperable, scalable, and with better governance.
Specifically, to address scalability, they will eliminate Parachain slot auctions and introduce the concept of essential moment. This feature will give developers more flexibility.
Instead of bidding and locking resources in the auction, they must purchase block space dynamically as needed. This will improve resource allocation, leading to more accessibility and efficiency.
Additionally, Polkadot developers are introducing the OpenGov system for more decentralized governance. The goal here will be to give all DOT holders a voice in decision-making, which is crucial in decentralized networks.
JAM Upgrade Proposal Passes, Will DOT Bulls Break $8?
The network is also preparing for other changes. The community recently approved the Join-Accumulate Machine (JAM) chain.
The proposal, which was unanimously pass by the community, paves the way for developers to create services similar to Ethereum smart contracts directly on the Polkadot relay chain. Gavin Wood, the former Ethereum developer who presented the proposal, said it would make the network more accessible.
Beyond network-related upgrades, the analyst also said more DOTs are being locked down, which is a huge boost. Usually, with staking, coins are removed from circulation, thereby increasing scarcity. If more activity and demand for DOT increases, this would have a positive impact on the price, helping to push it out of current ranges.
As of June 3, more than 1.4 billion DOTs were in circulation. During the fourth week of May, more than 820 million DOT had been staked. Looking at the price chart, if the coin rises above $8, the staking incentive and early rewards as well as capital gains will increase.
Featured image from Canva, chart from TradingView