The world’s eighth-largest cryptocurrency Polkadot (DOT) is back into action hitting a new all-time high. On late Monday, November 1, the DOT price shot past $50 while entering into the price discovery zone.
As of press time, DOT is trading 18% up at a price of $49.36 and a market cap of $48.38 billion. After consolidating over the last week and so, DOT has made the final push to its all-time high amid the ongoing excitement around parachain auctions.
Last month, Polkadot announced that the blockchain is all ready for the much-awaited launch of parachains on its platforms. Besides, the Polkadot governing council also gave a go-ahead immediately.
The first auction for the Polkadot parachains is scheduled for the next week and will happen on November 11. the first batch of parachain auctions will happen over a five-week period with one auction every week.
The Polkadot parachains are specialized blocks that help in connecting with the Polkadot Relay Chain thereby creating ‘multichain’ architecture. Parachains are the final piece of the core technology outlined in the Polkadot architecture.
Parachains and Polkadot’s Canary Network
Parachains are not entirely new to the Polkadot ecosystem as such. They were first deployed on Polkadot’s canary network Kusama for the first time back in June 2021.
Projects on the Kusama network required developers to use the native KSM tokens to secure a slot on the platform. Interestingly, the Polkadot governing council has passed a recent motion that allows developers to directly use the DOT tokens to secure the slots.
Polkadot is now gearing for the final stage of the approval through a public referendum. If the motion passes, parachain teams will be able to register their parachains and kickstart crowd loans on the Polkadot blockchain starting November 4.
With the recent breakout of the DOT price, analysts have turned bullish for Polkadot and expect the price to cross $100 levels by the year-end.
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