Another astounding week in cryptocurrencies pushed the price of major digital assets through the roof last week. Ethereum certainly stole the limelight by reaching a new all-time high of $4,067. While most altcoins followed the lead of Ethereum and reached new heights, Polkadot continues to struggle to break out.
New updates and upgrades within its ecosystem helped Polkadot (DOT) break the support level of $37.41. However, the digital asset is nowhere near its previous all-time high, owing to delays in its parachain auction. Let’s see what all has happened in the previous week for Polkadot.
First Polkadot-Powered Crypto ETF Creation and Trading Platform
The rise of cryptocurrencies has made investors rethink their portfolios. As a result, complex traditional investment structures have begun to enter the crypto space. A decentralized cross-chain platform, Plethori, has risen to meet the growing demands of serious investors by launching the premier ETF creation and trading platform for the crypto space. The platform has chosen Polkadot due to its EVM compatibility and high scalability. Moreover, it will include all Polkadot-based projects in the ETFs.
Equilibrium Raises $8.5 Million to Launch Its Services on Polkadot
The world of decentralized finance (DeFi) is growing at an exponential rate. The DeFi ecosystem is looking beyond Ethereum to scaling solutions – and Polkadot is arguably the best option available in the market. In the race to win a slot on the Polkadot parachain, Equilibrium raised $8.5 million in DOT with a Parachain Lease Offering (PLO) drive. The DeFi protocol already closed another funding round with $2.5 million in early April with participation from renowned industry players.
Synthetic Trading to Arrive Shortly
PERI Finance, a derivative exchange and cross-chain synthetic asset issuance protocol, has raised raised $4.7 million in a fundraising campaign. The PERI team will use the capital to further develop its ecosystem of products that are designed to provide liquidity and trading of synthetic assets on Polkadot. The goal is to enable users to access a wide array of plain and leveraged synthetic products at low cost.
Investment Brokers and Venture Capitals Bullish on Polkadot
Polkadot is already seeing a huge influx of capital in its ecosystem, poured in by industry behemoths. Another crypto venture capital firm, KR1, which has a long history of investing in Ethereum and other cryptocurrencies, recently announced that it is betting big on Polkadot. Michael Weber, a broker from The Investment Center, also shared his advice on Polkadot and said to keep an eye on DOT.
Getting Closer to Being an Ethereum Killer
Polkadot’s popularity is largely driven by its ability to scale transactions at a much lower cost. Though the founder and team separate it from Ethereum, it’s clear as the blue sky that Polkadot is bound to eat the market share of decentralized finance. A brief look at the on-chain explorer of Polkadot shows us that the number of daily transactions has started to reach the 1 million mark.
Image source: Polkascan
On May 2, over 940,000 transactions occurred on the network.
Image source: Etherscan
While Ethereum’s daily transactions struggle to go past 2 million, Polkadot is adding thousands of transactions on a daily basis to its database. With the current growth of the network, Polkadot is poised to eventually outpace Ethereum.
DOT Price Analysis
DOT has seen a steady rebound throughout the week to help its price recover above $30. The altcoin is trading at $37.46 as of the time of publication, down 5.4% for the day.
Image source: TradingView
If the digital asset bulls mirror recent gains for Ethereum, its price might break its previous all-time high achieved on April 17. If the price goes above $45, then a bullish rally can be observed. However, until then, we will continue seeing $37.41 as temporary support for the current price.