Polkadot price moves higher as parachain auctions reduce DOT’s circulating supply
DOT price targets new highs and investors expect the ongoing Polkadot parachain auctions to send the price on a trajectory that mirrors Kusama’s 2020 breakout.
Key points:
The ongoing Polkadot parachain auctions follow the success of similar auctions on its sister network Kusama, where projects like Moonriver (MOVR) and Karura successfully secure a parachain slot for the next year.
The Kusama parachain has recovered nicely from a low of $148.85 on July 19th to its now current price of $457. Here’s a look at some of the parachain auctions currently underway on the polkadot network and similar to the Kusama auctions.
Top 4 parachain auctions currently underway on polkadot. SOurce:prachains
Acala
A layer one smart contract platform billed as the decentralized finance (DeF) and liquidity hub of Polkadot. The protocol is ETH compatible and has built in liquidity and ready made financial applications including a trustless exchange.
Moonbeam
Moonbeam (GLMR) is a fully Ethereum compatible smart contract platform designed to simplify the process for multi-chain projects to launch on the Polkadot network.
Moonbeam’s sister network on Kusama is Moonriver, which offered the highest reward rating of all parachains launched on the Kusama network.
Astar
Astar (ASTR) is a protocol focused on the creation of a scalable and interoperable infrastructure for Web3.0 through the creation of a multi-virtual machine supporting platform that connects compatible layer-one protocols with the Polkadot network.
Parallel Finance
Parallel Finance (PARA) is a DeFi lending protocol and automated money market (AMM) that supports both Polkadot and Kusama-based assets and also enables token holders the ability to put their assets to work by earning interest.
With eleven sets of parachain auctions set to run weekly between Nov. 11 2021 and March 10, 2022, there is a strong possibility that the price of DOT will continue to increase as long as demand for parachain access continues.