Polkadot Will Rebound as the Number of Parachains on Its Platform Grows
Home Cryptocurrency News Polkadot Will Rebound as the Number of Parachains on Its Platform Grows
Cryptocurrency News - January 19, 2022

Polkadot Will Rebound as the Number of Parachains on Its Platform Grows

The new year has not proven any better for the DOT as it still continues the downslide from the final days of 2021. DOT has already lost as much as 50% from the all-time high price since last November. However, the recent thesis for its market changes claims that the coin might go as high as 20% before hitting the resistance in the market. Now with new developments from Polkadot, the expected uptrend might last for much longer than anticipated and could even set new heights as it goes.

The recent attention received by Polkadot owes much to its recent parachain auctions. Polkadot has successfully conducted another session of the parachain auctions. Around five parachains have been leased out from the mainnet of Polkadot. As per the reports, Polkadot has plans to lease out as many as 80 parachains to external projects. These lease contracts will permit the projects to access a portion of the blockchain for two years, after which the lease would expire. For the aforementioned period, Polkadot will take up the role of Layer-0 for these crypto-related projects. The projects on the blockchain will not be competing against the projects from the very ecosystem as enough allocations are made to accommodate around 80 parachains.

The previously leased parachains are beginning to launch their products and apps on Polkadot, turning the limelight towards Polkadot. On the 11th of January, Moonbeam, an Ethereum-run smart contract platform, was launched on the Polkadot chain. The parachain projects have come as a timely catalyst for the protocol to rescue it from the waning market relevance of Polkadot. Moonbeam has set up a genuine dApp on the parachain with features like balance transfer and Ethereum Virtual Machine. These aspects will help users stake easily and claim attractive rewards from the dApp.

The signs look positive for DOT to get back from the pit. As the parachains and the decentralized apps get popular on the Polkadot blockchain, the protocol would likely earn a good reputation that could compensate for the fall it has been witnessing for the last few months. From its current price, the DOT could exponentially increase as new projects are accommodated. 

However, the hike will not be as rapid as one might think. It could take even months for the coin to stabilize from the steep fall it has incurred so far. But one can be assured about the long-term abilities of the DOT coin. The Polkadot prediction from CryptoNewsZ claims that the coin would at least reach $100 by the end of 2026. The probabilities of a price rebound look higher than ever, with the subsequent Polkadot auctions scheduled to happen in the next 12 weeks

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