- Polkadot disclosed that the upgrade, when implemented, would interact only with DOT
Traders are betting on DOT’s price to increase in the short term
At Token2049 in Dubai, Polkadot announced its plan to swap out the Relay Chain with a new protocol called JAM Chain. This update was shared by co-founder Gavin Wood. The innovative JAM Chain aims to merge the features of Polkadot and Ethereum [ETH], resulting in an ecosystem that offers a permissionless, object-oriented programming platform.
Exposé is great for the token
The project found that the ecosystem would share some resemblance to Ethereum’s smart contract platform. Nevertheless, a key distinction lies in the scalable network of nodes provided by Polkadot for enhanced security. According to Wood, this was the crux of his remarks.
When completed, JAM will transform into a versatile computer system operated through a network, capable of executing various tasks represented as services.
In this context, it’s important to mention that only the DOT token is capable of engaging with the JAM Chain currently. The value of DOT was priced at $6.82 as of now, registering a slight increase in its worth over the past day.
In simpler terms, DOT hasn’t been doing well compared to other layer-1 cryptocurrencies recently. However, with Bitcoin‘s [BTC] fourth halving completed and the anticipated deployment of JAM, there’s a possibility that DOT may outperform on price charts.
Although there’s a chance, it’s essential to evaluate a token’s promise using on-chain information. For example, according to recent reports from AMBCrypto, the sentiment score for a particular project has increased significantly as of now.
Beforehand, the public feeling towards the project was pessimistic, suggesting a negative outlook from the larger market. However, within the past day, this sentiment has shifted. If this trend continues, there could be an uptick in demand for DOT, potentially pushing its price above $7.
Instead of “On the other hand, Polkadot’s development activity dropped,” you could say “Lately, Polkadot’s development activity has decreased significantly.”
A decrease in metrics indicates a diminishing dedication towards adding new features to the network. But with the arrival of JAM Chain, this situation might improve.
DOT is not near its top
The influence of Polkadot in social media is growing as indicated by a score of 0.782%. This means that conversations about the project are increasingly common, making it a topic of interest among traders.
If social dominance remains relatively stable, the price of DOT may continue to rise in the near future. However, if social dominance continues to increase at an alarming rate, the price may not reach a local peak.
Lastly, DOT‘s Funding Rate reached 0.01% on the 19th of April despite showing a negative figure earlier. This positive funding rate could be taken as an indication that traders as a group anticipate a potential price increase.
Realistic or not, here’s DOT’s market cap in ETH terms
If the cost of DOT increases in tandem with favorable financing, its worth could potentially soar beyond its current market price. Nevertheless, investors should exercise caution as DOT may become overvalued if financing becomes excessively high.
In such a case, the price might depreciate on the charts.
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2024-04-21 00:07