Polkadot, the interoperable blockchain, remains one of the largest and most popular networks in the top 20. To date, DOT, the platform’s native currency, is in 14th place, ahead of Tron and the NEAR protocol.
However, despite recent gains, it is still 87% below all-time highs, undeniably facing a brutal market correction.
Even with this pessimistic sentiment, a wave of optimism is building around DOT’s future. Taking it to X, an analyst he thinks the currency will not only shake off the weakness but also increase, rising to over $20 in the coming months.
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This confidence, the analyst said, will be mainly due to crucial developments in the broader Polkadot ecosystem.
Keeping an eye on Polkadot 2.0, better on-chain governance
Of the many, the analyst believes the upcoming Polkadot 2.0 upgrade will be a game changer. Polkadot is already interoperable and scalable. However, once the new update goes live, the platform’s developers expect the network to be more interoperable, scalable, and with better governance.
Specifically, to address scalability, they will eliminate the Parachain slot auction and introduce the concept of main time. This feature will give developers more flexibility.
Instead of bidding and locking resources at auction, they must dynamically purchase block space as needed. This will improve resource allocation, leading to greater accessibility and efficiency.
Additionally, Polkadot developers are introducing the OpenGov system for more decentralized governance. The goal here will be to give all DOT holders a voice in decision-making, which is crucial in decentralized networks.
JAM Upgrade Proposal Approved, Will DOT Bulls Break $8?
The network is also preparing for more changes. The community recently approved the Join-Accumulate Machine (JAM) chain.
The proposal, which was unanimously approved past by the community, paves the way for developers to build services similar to Ethereum smart contracts directly on the Polkadot Relay Chain. Gavin Wood, the former Ethereum developer who introduced the proposal, said it would make the network more accessible.
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In addition to network-related updates, the analyst also said that more DOTs are being locked, which is a huge boost. Typically, with staking, coins are removed from circulation, increasing scarcity. If more activity and demand for DOT increases, this will have a positive impact on the price, helping to lift it from current ranges.
As of June 3, more than 1.4 billion DOT were in circulation. By the fourth week of May, more than 820 million DOT had been bet. Looking at the price chart, if the coin surpasses $8, the incentive to stake and early rewards in addition to capital gains will increase.
Featured image from Canva, chart from TradingView