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Polkadot price remains strong above $22 in response to Grayscale's fund launch

  • Polkadot price has sustained above $20 with the rising volatility in the altcoin.
  • Grayscale recently announced the launch of a new Smart Contract Platform fund that invests in Polkadot.
  • Nine Polkadot parachain teams launched a $250 million ecosystem fund to promote early-stage dApps, fueling a bullish narrative among investors.

Polkadot price continued its climb with a spike in the adoption of the altcoin. Crypto asset management firm Grayscale announced the launch of its new Smart Contract platform fund, including Ethereum's competitor Polkadot. Analysts have noted rising volatility in Polkadot. 

Polkadot price remained steady and continued its rally

Polkadot price sustained its uptrend and climbed above $22. Analysts have observed a spike in volatility on the Ethereum-killer's network. 

Digital currency management giant Grayscale recently announced the launch of its Smart Contract Platform Ex-Ethereum fund. The fund is one of the first to solely invest in the asset and derive value from it. 

Grayscale invested 15% of its fund component per share in Polkadot, alongside other Ethereum competitors like Cardano, Solana and Avalanche. Grayscale's investment has fueled a bullish narrative for Polkadot adoption. 

Interestingly, projects and dApps in the Polkadot ecosystem have received a boost in their development through a $250 million fund. Nine Polkadot parachain teams introduced the ecosystem fund to promote early-stage projects on the blockchain network. 

Historically, a rising number of investors and higher utility of Polkadot have influenced the altcoin's price positively. Proponents believe the asset management giant's initiative to buy Polkadot using 15% of its fund component per share, alongside support for dApp development on the DOT network, could fuel the ongoing uptrend of the altcoin. 

Analysts have evaluated the Polkadot price trend and identified an ascending triangle formation. Typically, a breakout follows the formation of such a pattern in Polkadot price. Likewise, the asset has climbed higher and sustained itself above $20. 

Crypto analysts at the YouTube channel More Crypto Online believe the Polkadot price could continue its uptrend once it gets past the rejection point at $22.50. 

Author

Ekta Mourya

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.

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