Should you buy Polkadot (DOT) after recent 20% run?

XRP lost its position as the fourth-largest coin to Polkadot (DOT)

Polkadot DOT/USD allows the creation of three types of blockchains including the Relay Chain which is the main blockchain for Polkadot and is a network where the transactions are finalized. 

Then you have the parachains which are custom blockchains that use the relay chain’s computing resources to confirm that the transactions are indeed accurate. Then you have the bridges that allow the Polkadot network to interact with other blockchains. The Relay Chain uses a variation of proof-of-stake (PoS) consensus called nominated-proof-of-stake (NPoS).

Recent catalysts supporting DOT price

On June 10, the Korean blockchain technology company XPOP launched the world’s first Polkadot-based entertainment NFT marketplace. 

On June 11, Stake Technologies, a provider of infrastructure for dApps and Web 3.0 protocols, secured $10 million to build a dApp ecosystem on Polkadot and Kasuma. 

DOT’s price benefited from two additional catalysts just days later. On June 14 Coinbase announced that it will start trading DOT on the Coinbase Pro platform and Lending startup Parallel Finance raised $2 million to bring more DeFi to Polkadot and Kasuma.

Clearly, increased interest as well as investments within the dApp ecosystem can play a huge impact on the growth of the value of the DOT token throughout the blockchain. Its support for NFTs from projects such as XPOP is also a welcome addition when it comes to its value and investors have plenty to be excited about.

Should you buy Polkadot (DOT) now?

The DOT cryptocurrency plays a huge role when it comes to maintaining as well as operating the Polkadot network, and when you own or stake DOT, as a user, you have the ability to vote on the network upgrades. Each vote is proportional to the number of DOT cryptocurrencies you stake. You are then awarded newly minted DOT tokens based on the number of tokens you are staking. You can learn how to buy Polkadot (DOT) here.

On June 15, Polkadot (DOT) had a price of $24.58 which is up 20% over the past week but also down notably from prior highs of around $40.

But, the increased interest in this blockchain’s development can see it potentially get up to $30 again as recent momentum looks to be sustainable in both DOT and the broader cryptocurrency market.

A $40 price target by the end of the summer months is realistic due to the various dApp developments and innovations that will be the outcome of millions of dollars worth of investments.

As such, Polkadot is definitely worth taking an interest in and a buy at the $25 is something that investors should be comfortable with.

The post Should you buy Polkadot (DOT) after recent 20% run? appeared first on Invezz.

Publication date: 
06/15/2021 - 21:33
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.