Polkadot price fails to recover after five parachains auctions
- Polkadot price remained flat through the mega launch event of the first five parachains as they went live on the network.
- The first five parachains going live- Acala, Moonbeam, Parallel Finance, Astar and Clover- focus on DeFi, investments, and loans.
- FTX announced the listing of Polkadot on its spot exchange after the parachain launch event.
- Analysts have a bearish outlook on Polkadot price, predicting a lower high in the altcoin.
Polkadot price has failed to recover from a drop below $30. The network is the first heterogenous sharded blockchain to launch five blockchains in its ecosystem.
Polkadot’s parachains launch turned out to be a non-event for DOT price
Polkadot price has posted a 40% loss over the past month. Proponents expected the launch of the first five parachains- Acala, Moonbeam, Parallel Finance, Astar and Clover to positively impact price.
The five winning projects have leased their parachain slots for 96 weeks. Ethereum co-founder and creator of Polkadot, Gavin Wood, said,
The parachain model was created with the belief that the future of Web 3 will involve many different types of blockchains working together.
Bette Chen, co-founder of Acala, one of the winning projects, said,
After taking a bet on Polkadot and the Substrate framework when we started building over two years ago, we couldn’t be more excited to be launching Acala’s parachain to provide a DeFi platform and native, decentralized stablecoin (aUSD) to the Polkadot ecosystem and beyond.
The launch turned out to be a non-event for price. The event concluded over the weekend, followed by FTX exchange’s listing announcement for Polkadot. The Bahamian-based cryptocurrency exchange revealed that Polkadot would be listed on its spot exchange.
The news of the exchange listing failed to fuel the bullish narrative for Polkadot price. Analysts have evaluated the Polkadot price trend and predicted a lower high in the altcoin.
@AltcoinSherpa, a pseudonymous cryptocurrency analyst, believes that if the Polkadot price drops below the support at $24, it will hit a lower high.
$DOT: $24 better continue to hold or this thing is going to goblin town. I still think it will and I think that it eventually makes some sort of lower high. pic.twitter.com/TjZKKuDDPb
— Altcoin Sherpa (@AltcoinSherpa) December 19, 2021
FXStreet analysts have predicted that the Polkadot price is halfway through its 25% upswing.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
