Polkadot price to enter second leg up as Acala network wins first parachain auction
- The first Polkadot Parachain auction ends at 12:55 CET today.
- Moonbeam and Acala Network were the top two contenders for the Parachain slot.
- Polkadot has gathered community feedback for updating the altcoin's brand.
- Analysts expect a drop in DOT price before a trend reversal and hit a new all-time high.
Polkadot's first slot of Parachain auctions has ended with Acala network's win. The DeFi hub of Polkadot, Acala network, has $1.3 billion in total value locked.
Acala network's win marks end of first Polkadot Parachain auction
The first Parachain auction on Polkadot has ended. Acala network and Ethereum compatible smart contract platform optimized for DeFi. The protocol has emerged as a liquidity hub for DeFi with built-in finance applications.
Congratulations to @AcalaNetwork for winning Polkadot's first parachain auction!
— Polkadot (@Polkadot) November 18, 2021
Acala will be onboarded at block #8179200 [Dec. 18] at the beginning of lease 6 with the other first 5 auction winners. Over 81K network stakeholders locked up DOT in favor!https://t.co/ZFSzezZAFX pic.twitter.com/Xn0hItfHrm
Acala network and Moonbeam were neck to neck in the slot auction. DOT holders poured over 1.1% of DOT's circulating supply into the Acala network (crowdloan).
The DeFi projects plan includes the release of a stablecoin on Polkadot and a building of a DEX. Karura, Acala's sister project, secured a Parachain slot in Kusama auctions earlier this year.
Acala plans a DEX rollout by the first quarter of 2022.
Historically, Kusama prices dropped immediately after the end of nearly every slot auction. This was followed by a KSM price rally ahead of the next slot auction. Analysts expect a similar price trend in DOT.
Pseudonymous cryptocurrency analyst @Pastore1314 believes that DOT price will drop before a trend reversal . The analyst expects the DOT price to climb to a new all-time high.
$DOT
— Alejandro ™ .DOT (@Pastore1314) November 18, 2021
Keep an eye on this scenario
If this happens, you know the deal amigo pic.twitter.com/hPT02fhrZM
Analysts consider accumulating DOT at the current price, $39.18. @AltcoinSherpa recently tweeted:
$DOT: more chop as expected...Not a bad time to accumulate but not a great active trade IMO. #DOT pic.twitter.com/3SVXg16JuI
— Altcoin Sherpa (@AltcoinSherpa) November 18, 2021
FXStreet analysts have evaluated the DOT price trend and predicted a drop in Polkadot due to the rising selling pressure. Analysts have set the next target for DOT price at $45.
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.
