Polkadot price targets all-time highs ahead of parachains launch

Analysts remain optimistic on the Polkadot network’s parachain launch scheduled for November 2021. Though the percentage of DOT tokens staked has dropped consistently, its price continues its upward climb. 

DOT price rally continues as Polkadot prepares for parachain launch

In the ongoing bull run, layer one cryptocurrencies are rallying. The price of DOT has started climbing higher, ahead of Polkadot’s parachain launch, posting nearly 10% gains over the past week. Cryptocurrency analysts have shared their bullish outlook on DOT price, revealing that they are “very bullish” on the Polkadot network’s native asset. 

Lark Davis, a cryptocurrency analyst and YouTuber, announced that he is looking forward to the Parachain auctions in November 2021. Davis confirmed the list of top auctions that he is backing in a recent tweet. 

Polkadot is preparing for a multichain future with its parachain auctions. Ethereum, the second-largest cryptocurrency by market capitalization, announced its “sharding” mechanism years ago; users and developers in the community are still waiting for its launch. 

Unlike Ethereum, the DOT ecosystem is ready with the technical capabilities to support parallel blockchains, just as it did in the Kusama ecosystem. Polkadot unites a network of heterogeneous blockchains, parachains and parathreads and secures them through a “relay chain.”

One of the most exciting features of the DOT network is that each parachain can then be connected to external networks through bridges. 

The third batch of parachain auctions on the Kusama network went live, and nearly 21% of KSM tokens have been staked for crowd loans on the blockchain. 

The staking rate on Polkadot has dropped consistently, hitting 57.3% ahead of the parachain launch. This is the opposite of what was observed in the Kusama Network. 

A drop in the volume of DOT staked in crowd loans and parachains implies that there is an increase in tokens under circulation. Historically, higher circulation drives volatility in DOT price.   

Brad Laurie, cryptocurrency educator and YouTuber, considers that use-case-specific parachains on the DOT network are equivalent to layer one scaling solutions. 

Pseudonymous cryptocurrency analyst @rektcapital has evaluated the DOT price trend and predicted that Polkadot’s native asset will likely hit a new all-time high.