Hey, have you ever heard the phrase “follow where the whales go”? It’s all about keeping an eye on what the big crypto whales are up to. And let me tell you, they’re not just all about Bitcoin anymore. Nope, now they’re eyeing up Polkadot.
But why? That’s the big question I want to tackle today. Polkadot is making waves, and if these whales are onto something, we could be in for a wild ride. Stick around, and let’s dive into what’s got everyone buzzing about Polkadot
Whales are Accumulating DOT
Polkadot is leading the pack in this whole race towards a future where all these different blockchains can chat with each other. Polkadot suffered a decline towards the end of 2023. But, it has since rebounded and is seeing much attention from whales.
Whales are buying #DOT 🐳 ❇️
Last price: 8.395 (-0.083%)
Alerts in last 7 days: 1
24h Volume: 25.85M USDT
Score: 8/10 | Risk: 2/10 $DOT #BTC pic.twitter.com/j7SaAohZRU— FishTheWhales 🐳 (@FishTheWhales) April 12, 2024
Institutional inflows in DOT recently reached $5 million. There’s also been increased retail interest in DOT. These have caused DOT to outpace some of its competitors like Solana and Cardano. Polkadot has seen crazy activities since March. This blockchain recorded over 600,000 active addresses, according to data. This puts it ahead of:
- Ethereum.
- Aptos.
- Avalanche.
- Cosmos.
This milestone showcases the activity within the network. DotLake data attribute over 41%, or 248,000 of the 605,000 addresses to Moonbeam. In addition, the number of unique accounts with some cash in them is going up. We’re talking over 5.59 million accounts by the end of March. This is a jump from 5.53 million just the month before. Looks like more and more folks are getting in on the action!
DOT is currently around the $8.43 mark. But experts believe a bullish surge is around the corner. Now let’s talk about why Polkadot is seeing so many activities.
Polkadot 2.0 is Making a Difference
The Polkadot Foundation recently announced the arrival of Polkadot 2.0. Let’s have a little history lesson before talking about Polkadot 2.0. Polkadot seeks to become the most interoperable blockchain platform. This blockchain isn’t out to be an “Ethereum killer.” That’s for Solana and Cardano. Instead, it wants to connect chains into a single network.
How? Well, it’s got this main blockchain called a relay chain, and it brings in all these other user-created blockchains called parachains. It’s like a big blockchain party where everyone’s invited. Let me break it down further.
So, Polkadot does this cool thing where it auctions off relay chains. Think of it like renting out space for different protocols to do their thing on the network. And because each parachain has its special job, the possibilities are pretty much endless. Imagine one parachain acting as a hub for decentralized finance. And another handling all your stablecoin transactions.
What is going on with #OpenGov #Ref644?
Two whale sized wallets are pushing the vote over the line with combined voting power of over 46.34M DOT!
The top wallet 15Q~ has been an active voter for a year, but the second wallet 12X~ was only created days ago. 👀 pic.twitter.com/giMoZnNeuC
— WagMedia (@thatMediaWag) May 4, 2024
What’s Polkadot 2.0 About?
Polkadot 2.0 takes things to a whole new level. It introduces the Agile Coretime system. And replaces the auction-based model. It introduces a shift in allocating network resources. This model ensures that developers can buy block space whenever they need it, in big batches, or just when they need it. This new model could attract more developers to Polkadot.
Polkadot 2.0 makes things super app-friendly at the core layer. It emphasizes shared security. This means everyone’s looking out for each other. It will also increase flexibility and scaling. So, it’s going to be easier for apps to join the Polkadot ride. Plus, Polkadot 2.0 has some other cool stuff that makes it super secure and efficient. We are talking about:
- A new staking system.
- An on-chain treasury.
- A better governance system.
2.0 ushers in memes, games, and other cool stuff to Polkadot.
Why Does This Matter for DOT Tokens?
Well, with Polkadot 2.0, projects will need DOT to get core time. This means more demand for DOT and maybe a higher value. Also, people with extra core time might sell it, boosting DOT’s value even more. And with DeFi services on Polkadot, DOT holders can earn rewards, making the token even more useful.
Oh, and here’s the best part: when core time is sold, some of the money goes into the Polkadot Treasury. And DOT holders get to decide how it’s used. It’s all about keeping the community involved and the network running smoothly.
And get this: extra tokens that aren’t used are burned sometimes, which helps keep the supply of DOT in check. Polkadot 2.0 ushers in a new era of growth and development for this blockchain. With more projects coming in, we can only expect DOT to go back to its former glory. Of course, this will all depend on market dynamics.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
