Polkadot Will Rebound as the Number of Parachains on Its Platform Grows-Cryptocurrency.Mohoagd


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Polkadot will profit this year as it continues to sell off new parachains.

Polkadot  is the tenth-largest cryptocurrency by market capitalization, according to CoinMarketCap as of January 17. However, the good news is that parachains are now beginning to release apps and use cases on its blockchain technology. Polkadot is therefore far more valuable in the long run.

According to a recent release by the network, Moonbeam  has started on the Polkadot platform on Jan. 11. Moonbeam, a smart contract platform that is completely Ethereum  compliant, won the second parachain auction on Polkadot and completed the launch process.

However, DOT has been in a rut recently. The cryptocurrency has dropped from a high of $55 on Nov. 4 to a low of $23.62 on Dec. 20. In just one and a half months, the stock has dropped $31.38, or 57 percent. That's a lot of turbulence, and it's probably too much. By the 15th of January, DOT had risen to $28.18.

Where Things Stand With Polkadot

I previously discussed the Polkadot network's parachain auctions and their deflationary effect on the supply of DOT. The mainnet on Polkadot will now be leased out to winning parachains following a major auction.

Polkadot recently completed a successful auction of five parachains, each with its unique focus, on top of its blockchain network. According to the CryptoPotato online magazine, Polkadot also wants to establish at least 80 parachains on its blockchain platform.

Moonbeams has permitted balance transfers and the Ethereum Virtual Machine (EVM) on its network, which is one of its distinguishing features. Users will be able to stake and claim rewards via the transfer tool. As a result, it is a true decentralized finance (DeFi) program.

Polkadot is a blockchain code that operates at the "layer zero" level. In terms of the code they use, parachains are built on top of it. To be able to run on the blockchain, these parachains rent space on the Polkadot network for two years.

Polkadot's parachain blockchain transactions, according to Decrypt magazine, don't compete with all other smart contracts in the same ecosystem. There are 100 parachains available, and allocations are determined through auctions that guarantee a spot for up to 96 weeks (i.e., almost 2 years.)

"Auctions 6-11 will take place over the next 12 weeks," Polkadot tweeted on Dec. 24. A biweekly auction with 12 parachains would also be held, according to the tweet.

What to Do With DOT Now

It appears that DOT is on the verge of hitting rock bottom. The more parachains Polkadot adds to its blockchain network, the more attention it will receive. That will be beneficial to the Polkadot token price as well.

Furthermore, the crypto's reputation will improve as the number of parachains on the Polkadot platform grows, and as its decentralized apps (dApps) acquire popularity. 

Furthermore, its transactions may be perceived as speedier and more efficient than those of other blockchain systems in the future. This will also contribute to raise the cost of DOT.

As a result, it appears like the DOT's downward spiral has gone too far, too fast, and too far. I believe the market is now aware of this. As a result, Polkadot may see a turnaround in the near future.

As the market begins to correct the excessive selling at the end of the year, this will occur. I don't believe DOT will recover quickly as a result of this. 

It could take months rather than weeks for it to happen. But it's quite likely to happen, especially since Polkadot will continue to release out parachains that win in various auction processes on its platform.


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