Polkadot’s price pushes new highs over rising enthusiasm for the forthcoming parachain auctions and improved interoperability that they will help.
In the early hours of Feb. 20, Polkadot (DOT) trading volume started to see a substantial rise, which helped to push the multi-chain protocol to a new all-time high of $42.28.
Data from TradingView shows that DOT reached a low swing at $29.36 on Feb.19 before witnessing a 44 percent breakout that brought the stock to a new 2021 peak.
Excitement continues to build up in the Polkadot ecosystem ahead of the upcoming parachain auctions that will enable the Polkadot network to connect with other existing networks such as Bitcoin and Ethereum.
The process by which data is transferred between different blockchains is called “cross-chain message passing-lite” and is currently being finalised during the Rococo phase of the project roadmap.
Once the code has been thoroughly audited, it will be time for Polkadot’s administration to vote on allowing parachain functionality via a runtime update, followed by a vote to launch slot auctions to add beneficial parachains.
As can be seen from the chart above, the DOT score of VORTECSTM reached a high of 81 on Feb. 16, more than 48 hours before the corresponding price peak. The data also shows a 102 per cent rise in DOT-related tweet rate, which coincides with the price increase.
The implementation of parachains would help Polkadot move closer to its aim of being a go-to platform for interoperability and cross-chain data transfer, as well as helping to achieve the longer-term goal of building a truly decentralised and private web operated by its users.
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