The wide appreciation of Binance Coin (BNB), Cardano (ADA) and Solana (SOL) showed that investors are focused on smart contract platforms.
However, the same interest was not shown by Polkadot. After all, while all the major cryptoactives printed big rallies, DOT remained trading sideways.
In this regard, analyst Jordan Finneseth noted that since this cryptocurrency has not yet risen, this could be its bullish moment.
Based on this, Finneseth stated that altcoin should be the next cryptocurrency to break valuation records.
“Data from Cointelegraph Markets Pro and TradingView show that after hitting rock bottom at $10.36 on July 20, the price of DOT increased 205% to an intraday high of $31.70,” he said. .
Reasons for the price to go up
The analyzer pointed to three reasons that could help Polkadot to record new highs.
First, the analyst cited upcoming parachain auctions, where projects compete for community votes to win one of the limited slots available for launch on the network.
As Finneseth pointed out, this has the effect of reducing the circulating supply of available tokens. Consequently, there is increased pressure on the DOT price.
“The Polkadot network will go through its own parachain auctions once all auctions are completed on the Kusama network. The process has been fully audited and so far the Kusama-based parachains are working perfectly,” he said.
Furthermore, he pointed out that another reason is the large number of projects interested in getting a parachain slot.
Finally, the analyst pointed to the third reason for the bullish outlook for the cryptocurrency. It is the growing volume of trading, which is back to levels not seen since the May settlement.
“According to data, DOT 24-hour trading volume has risen more than 300% recently to a high of $5.41 billion in anticipation of upcoming Kusama parachain auctions. Enthusiastic Polkadot investors see KSM’s success as a proxy for what can happen with DOT,” he revealed.
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