Polkadot breaks out and is now the eighth largest cryptocurrency by market capitalization – but what is the reason for the sudden price increase?
Not only Bitcoin and Ethereum have been quoting higher and higher in the last few days, Polkadot, the bridge builder for the Internet of tomorrow, is also doing surprisingly well.
In the last 24 hours alone, the price of the cryptocurrency rose by over nine percent. For comparison: The Bitcoin price lost just under 1.12 percent in the same period. At press time, DOT is trading at $ 24.35.
But why does the DOT rate suddenly break out? The main reason for the surprising price increase is likely to be the listing of the DOT token on Coinbase: all in one Blog post Coinbase announced last Monday that traders will be able to trade DOT on Coinbase Pro from June 16.
Typically, that means that Polkadot will also be available on Coinbase’s retail trading platform in the next few weeks. Some investors are therefore probably already betting on DOT – in the hope that demand will increase in the near future. Since this has happened several times in the past with other crypto currencies, this phenomenon is called the “Coinbase Effect” in crypto jargon.
Parachain auctions live soon?
At the moment, you have to wait and see when exactly DOT will also be released for regular trading on Coinbase. However, it could well be that this time coincides with the start of the Parachain auctions on Polkadot, as these should go live in a few weeks. The start of these auctions could lead to an increase in demand for the Polkadot ecosystem token DOT – similar to what happened in the past with Kusama.
Because on Kusama, often referred to as the experimental version of Polkadot, Parachain auctions started successfully on June 8th. Many interpret this as a positive sign that the Parachain auctions on Polkadot will also work well.
Next-Level NFT on Polkadot – RMRK collects investment capital
Another positive news for the Polkadot ecosystem comes from Switzerland, albeit not quite as price-driving. The Non-fungible Token (NFT) project RMRK has announcedthat it has received $ 6 million in investment capital to build a cross-chain NFT infrastructure.
RMRK wants to build an infrastructure for trading NFT between blockchains such as Ethereum and Polkadot. On this mission, RMRK takes a different approach than many Polkadot projects. Instead of dealing with oversaturated parachain auctions, RMRK decided to do other projects cooperate.
The first implementation of the project should therefore be based on the Unique network take place, a project specializing in the NFT sector of Kusama and Polkadot.