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At the time of writing, Bitcoin was down 2.3 percent, Ethereum was down nearly 4 percent, and Cardano was down 4.5 percent, while Solana was down more than 11 percent on the daily chart.
Polkadot, on the other hand, did not appear to be doing too badly among the market’s top ten coins. As a result, the issue is, what is holding up DOT’s price, and is there any possibility for a full recovery?
Even though the larger market was fueled by Bitcoin’s momentum during this rally, some cryptos like Cardano, Solana, and Polkadot, managed to highlight their separate trajectories independent from the larger market.
Even though the brunt of the latest flash crash was borne by almost all coins, the likes of DOT were recovering somewhat despite corrections. However, the alt’s performance hasn’t been fueled in isolation. It has been supported by multiple developmental and social factors.
Collaborations are the way to go
In the crypto-space, a highly competitive market, collaborations, and development are the key to growth and many ecosystems have benefited from the same lately. Polkadot too is very active on this front. At the time of writing, the news of PolkaBridge, a decentralized all-in-one financial application platform integrating with Polygon full-stack scaling solution, was one instance of the same.
What’s more, its price upsurge can also be attributed to Polkadot’s Hackathon that began on 8 September. In addition to that, a motion seeking funding for a Treasury Proposal for the Polkadot Ecology Research Institute was recently passed. This would pave the way for other development-centric updates in the future.
DOT’s price, after the flash crash, started moving up on 8 September and saw an almost 40% hike over the next two days from a local low of $22 on 7 September. Notably, the Sixth Parachain auction ran till 8 September, following which, the price started pumping.
The launch of parachains, layer-1 blockchains that are expected parallel to Polkadot and Kusama Networks, also contributed to DOT’s rise.
What do metrics say?
On-chain activity on DOT has been brisk, owing primarily to ecosystem-centric changes and high social volumes as a result of the recent parachain auction. Polkadot metrics painted a positive picture of the alt, as DOT’s development activity increased steadily. The retail crowd has backed up significant development activity, which has been backed up by high trading volumes for Polkadot.
According to Lark Davis, “Parachains, when announced, will probably send it [DOT] to $100.” While this seems like a leap too far, looking at DOT’s current price trajectory, it won’t be a surprise if this happens over the long term.
Finally, after the latest price dip, the altcoin’s Open Interest has gradually hiked with time – A healthy sign for growth. Thus, looks like Polkadot will stay around for a while. Plus, a wider market recovery could further push the alt’s price.