Moonbeam leads second Polkadot parachain auction

Moonbeam is leading the second parachain slot auction. More DOT are being staked or pulled out of circulation for a crowdloan, accounting for nearly 8% of the token issuance. 

Polkadot’s second parachain auction is drawing to a close

Acala Network, considered as Polkadot’s DeFi hub, won the first parachain slot auction. Moonbeam, a smart contract platform, is leading the way in the second round. The winner of the second parachain slot is expected to be announced soon. 

Interestingly, the smart contract platform announced the close of the Moonbeam crowdloan. The Moonbeam foundation is no longer accepting DOT tokens in crowdloans and wants to preserve the rewards of the 190,000 holders who contributed to their launch on Polkadot’s parachain. 

As of November 22, roughly 90.7 million DOT tokens were staked or locked in a crowdloan, reducing the percentage of supply in circulation. Historically, a supply shortage has tended to drive prices higher, which may benefit Polakadot in the long run. 

Kilt, a decentralized identity protocol, recently partnered with Moonbeam to implement a liquidity mechanism for Polkadot, dubbed Polimec. The blockchain startup is focused on creating a fully regulatory compliant DeFi infrastructure verified with a decentralized identity. 

A spike in utility, liquidity and adoption is likely to add fuel to the bullish narrative around Polkadot as analysts appear to be turning bullish, given the recent price action. Technical analyst and youtuber Bitcoin Bros have evaluated DOT price and predicted a trend reversal. 

With reference to Fibonacci retracement levels, the analysts expect the Ethereum-killer Polkadot to hit a new all-time high above $54.98 and rally towards the $70 target in the current cycle.