Polkadot (CCC:DOT-USD) is a name floating around with a lot of interest nowadays among crypto investors. The parachain network is seen as a key player in the future of Web 3.0, making the Polkadot crypto, DOT, a popular investment of the current moment. Tomorrow is an important day for Polkadot as well, with the first batch of major launches coming. In anticipation of this event, DOT is on the rise.
The Polkadot network is lauded by Web 3.0 advocates and scalability-focused blockchain fans alike. This fandom is attributed largely to its parachain network. Unlike other blockchain networks, which use a single chain, Polkadot is a web of 100 “parachains.” These parachains each house a different project; they can seamlessly interact with one another at little cost to the user. Furthermore, the Polkadot network oversees these chains, supports them and allots them to different projects.
With its nearly $30 billion market capitalization, the DOT coin is the ninth-largest cryptocurrency in the world. Combine that massive capitalization with the network’s very kind development fund and dedicated chains, and you’ve got a network that projects will fight tooth-and-nail to be a part of. And developers do; Polkadot wants to decide which projects get a chain in the fairest way possible, and it does so with auctions.
Polkadot’s auctions are meant to be the fairest way of dedicating chains possible. Projects will crowdsource an auction bid over the course of a set start and end period. As the auction winds down, the Polkadot protocol will pick a random moment in a seven-day end period to declare the leading bidder the winner. This makes the auction very intense, as there’s no telling who will win until it’s over.
Polkadot Cryptos Gains as Parachain Auctions Come to a Close, Projects Prepare to Launch
Today’s Polkadot crypto catalyst comes as the network’s first batch of auctions comes to a close. After beginning in early November, the fifth and final project of the first batch of auctions will be announced today. These five projects will usher in the new era of Polkadot, and they’ll do so very soon.
The five projects that won their respective auctions are all going live tomorrow, Dec. 17. The launches will give Polkadot its first chance to really strut its capabilities as a parachain network. These projects include DeFi platforms Acala (CCC:ACA-USD) and Parallel Finance (CCC:PARA-USD), as well as smart contract platform Moonbeam (CCC:GLMR-USD) and scaling platform Astar (CCC:ASTR-USD). The network will announce the fifth winner today; after this, the five projects will all see full launch on Polkadot tomorrow.
In anticipation of the launches, the Polkadot crypto is on a steady rise. DOT is gaining 7% so far this morning. An increase in trading volume is accompanying the price bump; over $1.7 billion in DOT is trading hands thus far, a 50% increase over yesterday’s volume.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.