Polkadot token surged by more than 39% in the last week, creating more interest for traders and investors to look at its future profits. The recent pump also indicates that there is an increase in the number of users on the network, creating some spark.
This article will dive into the why Polkadot is pumping, current tokenomics, and more. Let’s burn your curiosity bubbles about this token.
What is Polkadot?
Polkadot is a blockspace ecosystem for boundless innovation. It is an open-source sharded multiple-chain protocol network that provides a path for interoperability and secures cross-chain transfer between these blockchains of different digital assets.
Polkadot is developed and designed to address some of the scalability, interoperability, and governance challenges faced by existing blockchain networks and overcome them. It consists of a relay chain, which serves as the main chain, and multiple parachains (parallel chains) that connect to the relay chain.
Moreover, it is also known as layer-0 metaprotocol. It forms the foundation and delineates a structure for a network consisting of layer one blockchains referred to as parachains, which are essentially parallel chains.
The Reason Behind the Current Surge of Polkadot Token
An ecosystem agent, asynchronous Rob, mentions in his tweet that the Polkadot relay chain recorded 5,970,000 transactions two days ago. On Sunday, the number increased to 6,930,000, indicating that the chain still operates below its capacity. It is one of the reasons behind the recent surge.
Furthermore, Polkadot Insider posted a fact on 20th December, Wednesday, that the network has generated over 329.1% of normal weekly revenue, surpassing Kusama and Solana. It is ranked 2nd, just behind Avalanche. An increase in revenue implies a corresponding rise in the network’s fees.
Moreover, the user’s engagement on this network has also increased, as well as the development activity. Millions of daily transactions are being propelled by the introduction of Snowbridge, a platform that enables transfers between Polkadot and other blockchains. According to Coinlive, Polkadot blockchain will deploy Snowbridge between the network and Ethereum in the first quarter of 2024. They also plan to implement asynchronous support, minimum Relay, and flexible Coretime in the upcoming year.
Polkadot is also gaining attention because of its Dotordinals and memes built on the network. The realms of GameFi and decentralized finance (DeFi) are flourishing on the Polkadot network, showing positive trends in key metrics. As developers on this project continue to innovate the blockchain, the Polkadot’s potential is spreading all over crypto social media. The expanding usage and attention on social media provide support for the recent increases in price and indicate that there is further potential for DOT to experience growth.
Tokenomics: $DOT
At the time of writing, the $DOT is trading at $9.30, with a 4.11% increase in the last 24 hours. It has pumped over 39.72% in a week and 74.34% in a month. The 30-day revenue has climbed by 462.06%, with a 30.6% user increase. The market cap of the network is $12 billion, with a 24-hour trading volume of $89 million.
Conclusion
Polkadot is attracting many users from around the globe through social media. Its token has taken a bullish ride in the last couple of weeks, indicating further price surge in the upcoming days or weeks. Although, you need to stay updated with the latest market news.
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