Polkadot is up over 600% for the year, and the momentum may not be subsiding just yet, as its forthcoming parachain auctions could push its price even higher.
Parachains allow developers to access the Polkadot blockchain ecosystem, deriving the benefits of its security and interoperability. November 11 marks the day that developers can bid for a slot on the Polkadot ecosystem, which lasts for seven days.
“There’s parachains coming up,” said crypto analyst and trader Michaël van de Poppe. “There’s hype around Polkadot. There’s lots of momentum here. So where should you be buying Polkadot at this instance? And we have been discussing that in the updates previously, too. The entire green zone [$35 -$37] was the critical level that you preferably want to see Polkadot sustain.”
Parachains can help add more scalability to the Polkadot ecosystem, allowing additional expansion from interconnected blockchain networks that could trigger more interest from investors. As more institutional money flows into bitcoin and ether, investors will want to start looking for other areas of opportunity where their competitors aren’t looking — this includes alt coins like Polkadot.
“While other blockchain protocols only allow developers to build dapps using smart contracts, Polkadot gives them full control over the underlying blockchain itself,” the Polkadot website said. “This flexibility gives parachain developers the maximum freedom to optimize for any use case—which means better and more secure dapps and services for all.”
Outpacing BTC and Ether
Compared to the top two cryptos in terms of market capitalization, Polkadot’s native currency DOT is currently eighth on Coinmarketcap. However, when you put all three side by side in a performance of pure gains, it’s Polkadot leading the trio with an over 600% gain.
Where can investors get exposure to Polkadot via the safe confines of a fund that’s professionally managed? One place is the Valkyrie Polkadot Trust (VDOT), which is currently waiving its management fees until 2023 and is targeting an 8% yield, which should satisfy fixed income investors looking for yield.
“Professionally managed by seasoned asset managers, VDOT invests exclusively in Polkadot’s native currency, DOT, and aims to offer investors cost-efficient, secure and effective access,” the Valkyrie website notes. “VDOT aims to provide an additional annualized 8% yield through staking. VDOT is IRA eligible from certain providers.”For more news, information, and strategy, visit the Crypto Channel.