Layer-1 smart contract platforms increased their market share throughout August after the Ethereum networkLondon hard fork did little to solve the major issues of high transaction fees and network congestion.
One top-10 protocol that has been gaining momentum, but has yet to experience a significant price breakout to new highs like some of its competitors is Polkadot (DOT), a multichain protocol focused on facilitating the creation of cross-chain bridges between separate blockchain networks.
Data from Cointelegraph Markets Pro and TradingView shows that after bottoming out at $10.36 on July 20, the price of DOT increased 205% to an intraday high at $31.70 on Aug. 31 as the chatter of an impending altseason begins to rise.
Three reasons for the increasingly bullish outlook for DOT are its upcoming parachain auctions, a rapidly growing ecosystem of projects interested in launching on the network and a steady increase in daily trading volume.
One of the biggest drivers of momentum for the Polkadot ecosystem is the upcoming parachain auctions where projects vie for community votes to obtain one of the limited slots available to launch on the network.
Polkadots wild cousin Kusama has been in the process of conducting its auctions, with the first batch having been chosen at the end of July and the second batch of auctions scheduled to begin on Sep. 1.
As part of the parachain crowdloan process, users vote for projects by locking up DOT tokens for a designated term as a way to bootstrap funding for projects that are chosen to fill one of the limited slots.
This has the effect of reducing the circulating supply of tokens available adding pressure on the price of DOT. The Polkadot network will undergo its own parachain auctions once all auctions are complete on the Kusama network. The process has been fully audited and to date, the Kusama-bas parachains are running smoothly.
Another reason for the recent strength of DOT is the large number of projects interested in obtaining a parachain slot and launching on the network.
As evidenced by the graphic above, the Polkadot ecosystem has seen extensive growth in terms of protocols and supporting infrastructure over the past year and this is outmatched by only a small number of competing networks in the space.
With the Polkadot parachain auctions expected, its likely that the ecosystem will continue to expand and welcome new projects and proof of this comes from the fact that the Kusama parachain process has thus far been a relatively smooth .
Related: Will Polkadot save decentralized finance from Ethereums scaling problems?
A third reason for the bullish outlook for DOT has been its surging 24-hour trading volume which is now back at levels not seen since the market-wide sell-off in late May.
According to data from CoinMarketCap, DOT's 24-hour trading volume surged more than 300% on Aug. 31 to a high of $5.41 billion as anticipation for the upcoming Kusama parachain auctions excited the Polkadot investors who view KSM's success as a proxy of what can occur with DOT price.
If the Kusama network can continue the smooth rollout of its auction process and clear the way for the process to begin on the Polkadot network, the demand for DOT could rise and this could translate to higher prices for the asset.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Read the original here:
3 reasons why Polkadot could be the next altcoin to hit a new all-time high - Cointelegraph
- 2 Fascinating Altcoins to Add to Your Watch List - The Motley Fool - October 10th, 2021
- Cardano and Five Altcoins Set To Outperform Bitcoin As New Phase of Market Cycle Begins, Predicts Crypto St... - The Daily Hodl - October 10th, 2021
- Analytics Firm Issues Altcoin Warning, Says Crypto Asset Thats Surged 393,000% Year-to-Date Is Likely Ov... - The Daily Hodl - October 10th, 2021
- Top 3 Price Prediction Bitcoin, Ethereum, XRP: Altcoin lag while BTC marches higher - FXStreet - October 10th, 2021
- 5 Altcoins to Buy in the Bull Run, According to Crypto Investor - Business Insider - October 8th, 2021
- Crypto Analyst Says Fast-Rising Altcoin Will 10x Through This Bull Market - The Daily Hodl - October 8th, 2021
- 2 Undervalued Altcoins to Buy, Per 26-Year Wall Street Veteran Trader - Business Insider - October 8th, 2021
- How high are the chances of Bitcoin sustaining its gains and pushing altcoins higher? - FXStreet - October 8th, 2021
- Bitcoin Pumps Past $55K; Hive, BTCST, Badger Rally Amid Altcoins' Consolidation, Here Are the Predictions! - KryptoMoney - October 8th, 2021
- 15 Altcoins to Buy Based on Developer Interest, Following Ether - BofA - Business Insider - October 6th, 2021
- Altcoin outlook: 6 alternative cryptocurrencies to watch in Q4 - Markets Insider - October 6th, 2021
- Popular Crypto Strategist Predicts Monster Rallies for Solana and Terra, Says One Overlooked Altcoin Ready ... - The Daily Hodl - October 6th, 2021
- Four Emerging Altcoins Surge 101% or More Within Seven Days As Crypto Markets Ignite - The Daily Hodl - October 6th, 2021
- Popular Crypto Trader Compares Bitcoins Chart to Altcoin That Surged 12,000% in a Year - CryptoGlobe - October 6th, 2021
- Top Trader Says Bitcoin Following Price Path of Explosive Altcoin That Rose Over 10,600% in One Year - The Daily Hodl - October 6th, 2021
- Solana, FTT and Two Additional Altcoins Breaking Out of Market Slumps, According to Crypto Analyst Scott Me... - The Daily Hodl - October 6th, 2021
- Altcoin Project Backed by Cardano Rallies 92% in Just Two Weeks, Leaving Crypto Market in the Dust - The Daily Hodl - October 6th, 2021
- Altcoins Surge as Crypto Market Regains Steam - CoinDesk - September 25th, 2021
- Altcoin roundup: Theres more to DeFi than just providing liquidity - Cointelegraph - September 25th, 2021
- Best altcoins to buy: Experts share cryptocurrencies they're buying - Business Insider - September 25th, 2021
- This Magical Altcoin Project Has Soared 116% This Week, Defying Bitcoin and Crypto Markets - The Daily Hodl - September 25th, 2021
- Here Are the Top 5 Altcoins for the Remainder of September, According to Crypto Analyst Michal van de Poppe - The Daily Hodl - September 25th, 2021
- These Five Altcoins Are About To Go Insane, According to Crypto Trader Aaron Arnold - The Daily Hodl - September 25th, 2021
- Analyst Who Called Crypto Crash Updates Bitcoin and Ethereum Outlook, Predicts One Altcoin Likely To Bounce... - The Daily Hodl - September 25th, 2021
- Polkadot, Avalanche, and Two Additional Altcoins Are the Top Crypto Assets To Watch, Says Trader Jason Pizzino - The Daily Hodl - September 25th, 2021
- This Mid-Cap Altcoin Is Surging As Most of the Crypto Market Crashes - The Daily Hodl - September 25th, 2021
- Ethereum, Cardano have 'great use cases,' but this altcoin might lead autumn - AMBCrypto News - September 15th, 2021
- Altcoin Spikes After Fake Press Release That Walmart Is Accepting It Immediately Crashes After Truth Is Discovered - Wonderful Engineering - September 15th, 2021
- Analyst: This Altcoin Has Best Shot at Becoming 2nd Most ... - September 13th, 2021
- This Emerging Altcoin Will Follow the Explosive Price Action of Solana, Predicts Top Crypto Strategist - The Daily Hodl - September 13th, 2021
- Bitcoin Vs Altcoins: How Are They Different? - NDTV Profit - September 13th, 2021
- Its an Altcoin Season: Solana and Others Shoot Up - Yahoo Finance - September 13th, 2021
- This Altcoin Is Skyrocketing Amid the Greater Crypto Market Correction - The Daily Hodl - September 13th, 2021
- These Five Altcoins Are All Up 100% or More in One Week Despite Broad Crypto Correction - The Daily Hodl - September 13th, 2021
- This Altcoin Could Make 1,000x According to Analyst - Somag News - September 13th, 2021
- Altcoin Evolution - Part V: The Closing Recap - NewsBTC - September 4th, 2021
- Trader Who Called Bitcoin Bottom Predicts This Blazing Altcoin Will Overtake Binance Coin - The Daily Hodl - September 4th, 2021
- Time To Be Cautious on Cardano? Analyst Michal Van De Poppe Looks at Whats Next for the Explosive Altcoin - The Daily Hodl - September 4th, 2021
- Is Cardano Correlated With This Altcoin? Analyst Justin Bennett Looks at Under-the-Radar ADA Connection - The Daily Hodl - September 4th, 2021
- This Mid-Cap Altcoin Is Surging After Announcing Massive $318,000,000 Incentive Program - The Daily Hodl - September 4th, 2021
- The altcoin Solana soars 24% in one day and ahead of the Dogecoin in capitalization - Market Research Telecast - September 4th, 2021
- Altcoins 101: Definition, Explanations, Examples - Business Insider - September 3rd, 2021
- Crypto Analyst Says Surging Altcoin Is Easy Set and Forget Play, Flips Bullish on Ethereum, A... - The Daily Hodl - September 3rd, 2021
- It's Time to Plug Into the Altcoin Arrival - InvestorPlace - September 3rd, 2021
- Altcoins are the alternative digital currencies to bitcoin - here's what they are and how they work - Markets Insider - September 3rd, 2021
- These 2 altcoins are leaving Bitcoin in the dust this week - The Motley Fool Australia - September 3rd, 2021
- What Are Altcoins? - Motley Fool - September 1st, 2021
- These 7 Altcoins Are About To Pop, According to Altcoin Daily - The Daily Hodl - September 1st, 2021
- Cardano Price Predictions: How High Can Altcoin Season Take the ADA Crypto? - Investorplace.com - September 1st, 2021
- XRP Price Predictions: How High Can the New Altcoin Season Take the XRP Crypto? - Investorplace.com - September 1st, 2021
- The Altcoin Evolution - Part IV: The Challenges - The Sales Pitch - NewsBTC - September 1st, 2021
- This service is declaring that it's crypto altseason again - Cointelegraph - September 1st, 2021
- Five Red-Hot Altcoins Record Gains of 138% or More Within One Week - The Daily Hodl - August 26th, 2021
- How to Turn Bitcoin Into Altcoins - The African Exponent - August 26th, 2021
- This Surging Altcoin Is Primed to Ascend Higher, Says Crypto Trader Lark Davis - The Daily Hodl - August 26th, 2021
- The next Bitcoin? Why investors are bullish on fast-rising altcoin Cardano - The Motley Fool Australia - August 26th, 2021
- Fetch.ai, Bancor and Two More Altcoins Headline Assets With Heavy Whale Accumulation: Santiment - The Daily Hodl - August 26th, 2021
- Hedera Hashgraph Price: HBAR Could be the Next Hot Altcoin - InvestingCube - August 26th, 2021
- MobilityGuru launches a new altcoin to make blockchain technology more inclusive for people with disabilities - TechBullion - August 26th, 2021
- Coinbase to Invest $500 Million in Bitcoin And Speculative Altcoins - Bitcoin Magazine - August 26th, 2021
- Selecting the best Altcoins, the Gulzar way! - Moneycontrol.com - August 20th, 2021
- Top 5 Altcoins That Will Blow Up in 2021 By CoinQuora - Investing.com - August 20th, 2021
- Here Are the Top 5 Altcoins To Watch Right Now, According to Crypto Analyst Michal van de Poppe - The Daily Hodl - August 20th, 2021
- Heres what Solanas liquidity black hole means for the altcoin market - AMBCrypto News - August 20th, 2021
- Dogecoin, Solana and One More Altcoin Could Ignite Big Rallies While Bitcoin and Ethereum Cool Off: Top Cry... - The Daily Hodl - August 20th, 2021
- Recent Cardano, Solana, DOT rallies mean this for the prospect of an altseason - AMBCrypto News - August 20th, 2021
- Should you stay away from this altcoin that rallied by 326% - AMBCrypto News - August 20th, 2021
- Why Another Wave Up For Altcoins Is Probable According To BTC Dominance - NewsBTC - August 16th, 2021
- Why A Shocking Altcoin Season Could Be On The Horizon - NewsBTC - August 14th, 2021
- Altcoins soar while Bitcoin bulls gather strength to attack $48,000 - Cointelegraph - August 14th, 2021
- These Four Ethereum Competitors Are Set To Explode This Year, According to Altcoin Daily - The Daily Hodl - August 14th, 2021
- These Five Altcoins Have Solid Potential for Q3, According to Coin Bureau - The Daily Hodl - August 14th, 2021
- Top Analyst Predicts Parabolic Rally for One Emerging Altcoin, Says Dogecoin Will Outperform Bitcoin - The Daily Hodl - August 14th, 2021
- Here Are the Top Three Altcoins To Watch This Month, According to Crypto Analyst Jason Pizzino - The Daily Hodl - August 14th, 2021
- Does Cardano (ADA) look stronger than the other altcoins? - FXStreet - August 14th, 2021
- Cardano, Litecoin and Polkadot: What traders need to know - AMBCrypto News - August 14th, 2021
- Every dog has its day: Dogecoin and Shiba Inu fetch 50% gains as altcoins rally - Cointelegraph - August 14th, 2021
- Axie Infinity Hits $62 As The Altcoin Market cap Crosses $1 Trillion - Coinfomania - August 14th, 2021
- Bitcoin, Ethereum and These Three Altcoins Have Huge Potential As Crypto Markets Heat Up: Altcoin Daily - The Daily Hodl - August 8th, 2021
- This Low-Cap Altcoin Is Up an Incredible 5,900% in Just Seven Days - The Daily Hodl - August 8th, 2021