In the times where Bitcoin and Ethereum were already well-established in the world of blockchains, Polkadot crypto emerged as an alternative to Ethereum. Polkadot is one among them which gives access to multiple blockchains for the common set of validators. Within a very short period since its launch, it corroborated itself as the ‘next-generation’ blockchain.
Polkadot is considered one of the hottest blockchains to grow an ecosystem of cryptocurrencies. It’s one of the distinguished projects that enable the users to launch & operate their blockchain on top of a computer-operated blockchain. It was when Ethereum was facing extreme network congestion and also soaring gas fees, Polkadot entered and proclaimed itself as ‘Ethereum Killer’.
About Polkadot In Brief
Polkadot was created by Gavin Wood, who also co-founded Ethereum with the other co-founder’s Peter Czaban and Robert Habermeier in 2016. The Polkadot blockchain mainnet went live just a year ago in 2020 and offered several new technical features.
The native token of Polkadot, ‘DOT’ plays a very important role in maintaining and operating the Polkadot network. The DOT coin holders enjoy the right to vote on the network upgrades and developments. The interesting part is that vote is proportional to the DOT crypto staked on the network. The more you stake the more power you possess to vote.
Polkadot(DOT) Fundamental Analysis
Polkadot is designed to operate 3 types of blockchains, one the main network and the other which is built upon it. The main network is called the ‘Rely Chain’ where the transactions are permanent and irreversible and the other one is called the ‘Parachain’ which are user-generated. The third one is the Bridges which allows the Polkadot network to interact with the other blockchains.
With this design, the Polkadot team intends to keep the transitions safe and accurate using minimal computing resources to run the Rely Chain. However, the users get additional benefits from customizing the Parachains as per their needs. The team believes the transactions to be more private and efficient as the data remains undisclosed either from the user to the public network or vice versa.
Polkadot’s para chains mainly intended to ease congestion and increase speed. All thanks to the design where each application on Polkadot has its mini-blockchain or parachain that connects back to the Rely chain.
Will DOT Price Hit $60 in 2021?
The Polkadot coin price has gained more than 600% since its launch and despite a narrow trend, yet the asset is poised to hit higher levels soon. The DOT price debuted the trade with a mere price of around $2. After trending in a very narrow region through the year 2020, the asset finally rose high in 2021. The price surged high at a stretch and smashed the highs close to $50 initially.
Later the price experienced a massive drain, however, the asset went parabolic and registered highs above $56 very recently. Yet the asset has again fallen into a deep well and is attempting to rebound at the earliest. However, the asset appears to have been impacted heavily due to the current market conditions and preventing further loss.
The consolidation may continue for some more time and may flip very soon as the indicators point out towards a notable bullish trend awaiting ahead. The selling pressure may ease out in the next couple of days, paving way for the asset to break through the consolidation and attain the local highs above $44. The target beyond $50 appears to be pretty tough at the press time, however, an extended bull run may keep the target indistinct.
Factors Affecting Polkadot Price Today
The most awaited Parachain auctions went live recently which are expected to continue till January 2022. These auctions may impact the price to a large extent but if the asset falls to ‘buy the rumor sell the news as it happened with Cardano, DOT crypto price may continue to consolidate.
Coming to the technicals, RSI appeared to have visited the lower lows and attempted a rebound. Despite a failed attempt, the levels could be elevated with the next attempt. The MACD also appears to follow a similar trend. The selling pressure appears to have still mounted where-in the buying is still negligible. Therefore, the DOT price could continue to consolidate within a narrow trend for some more days until a strong influx of liquidity drags the price from the bearish divergence.
Where to buy Polkadot(DOT)
The Polkadot coin since its inception has made huge noise in the crypto space and hence most of the exchanges tend to list the crypto within no time. However, if you are in search of a trustworthy platform to buy a Polkadot coin in India, then CoinDCX is the best-suited platform. By downloading the CoinDCX mobile App, you unlock the world of hassle-free trades at affordable rates. Just download the app on your smartphone and register in a very few simple steps.