Polkadot (DOT) surged by 20% to new highs of around $51.49 on Monday. The crypto is comfortably within the top 10 coins by market cap and it has been touted as an ‘Ethereum killer’. But, what caused this new price rise when the rest of the market has been relatively steady?
One of the main reasons for this increase was another significant development in the blockchain network. A vote was announced to approve ‘parachain auctions’ on the network. You can think of a parachain as an individual blockchain on the entire network, and with auctions developers could obtain crowd loan funding for their projects. New developments and use-cases can then be built on the blockchain.
The vote seems likely to pass, and the first parachains will go on auction. There will be 11 auctions in total. One of the benefits of Polkadot is the lack of restrictions on potential projects. The only requirement is that it runs on the Polkadot ecosystem. It can have its own use case, design and governance process. This an exciting development for the crypto space and we wait to see what the community will deliver.
Here is how DOT and other major cryptos were trading at the time of writing (11:30 am):
DOT was up over 13% in the past 24 hours and trading at $50.50
Bitcoin was trading at $63,310
Ethereum was edging closer to its all-time high and was trading at $4,461
Dogecoin was trading at $0.274
Shiba Inu was trading at $0.00007033 and was above Dogecoin in market cap
Ripple was trading at $1.11