When will the price of DOT rise (Reasons for the sharp rise in DOT)

When will the price of DOT rise? According to the OKEx market data from Ouyi, the price of DOT is below $1.

May 19, 2019: The market value of dotcoin (DCO) reached its historical high of $200 million. On December 17, 2019, the trading volume on Bitfinex exceeded $1 billion, and by the end of 2019, the trading volume surpassed $2 billion. At the time of writing, the price of DOT is 0.8 RMB. The increase from the end of 2019 to the beginning of 2020 was 14.3% and 13.7% respectively, with a surge of 15.1%, 11.6%, and 12.4% in between.

As of now, DOT has accumulated a rise of more than 4 times. From the end of 2020 to the middle of 2021, it has achieved double-digit growth for six consecutive quarters since 2017, with an average annual increase of about 30%.

Reasons for the sharp rise in DOT

Editor’s note: This article is from 8BTC (ID: bitcoin8btc), authorized to be published by Planet Daily.

According to Bloomberg, the price of the decentralized autonomous organization DOT on the Ethereum network has risen more than 20% in the past 24 hours. According to CoinGecko, at the time of writing, it has risen to around $21,000; and other mainstream tokens such as BNB and XTZ have also performed well.

From a technical perspective, the market value of these two cryptocurrencies has exceeded $1 billion, but these numbers are still relatively small.

Nevertheless, DOT has performed quite well in recent months. According to the analysis data from Coindesk, DOT currently accounts for about 65% of the market value of all cryptocurrencies, far surpassing ETH, EOS, TRX, ADA, and LTC. (Image source: CoinMarketCap)

Another factor worth paying attention to is the stability of the Polkadot ecosystem: “DOT” is called a “parachain”, but the project is still in its early stages. “Polkadot” is a network of multiple blockchains that can share its value with other Ethereum-based applications.”

One of the main innovations of Polkadot is the creation of interoperable parachains on the Ethereum network, allowing blockchains to connect and securely communicate with each other. The reason for the sharp rise in “DOT” may be the emergence of new functions in the Polkadot ecosystem, such as allowing developers to use smart contracts to validate blocks and execute transactions, such as sending transactions to third parties or managing node operators (such as exchanges) through smart contracts on public blockchains.

Although Polkadot has not launched its own token, its ecosystem supports a variety of applications, including DeFi, games, and other types of applications, as well as public chain projects like Steem. DOT has risen nearly 50% in the past week. In addition, investors have also noticed that many new projects in the Polkadot ecosystem are under development, and the most exciting one is the Polkadot ecosystem, which hopes to provide better tools for developers to build high-performance blockchains.