Polkadot is a blockchain platform and cryptocurrency with its own DOT token. The main goal of the platform is to enable the interaction of different blockchains without the participation of a trusted third party. This allows data and assets to be transferred across the chain, creating the conditions for the development of decentralized applications (dApps).
The key element of the #Polkadot network is the relay chain. She is responsible for managing the network, validating data, reaching consensus, and processing transactions. Users can create their own parallel chains (parachains) that operate independently, but still use the Polkadot infrastructure.
The relay chain acts as a control plane in the Polkadot network, ensuring that all transactions and data transfers are verified. Parachains, in turn, use this infrastructure to operate while maintaining the security benefits and interoperability provided by a relay chain.
Polkadot also enables seamless cross-chain communication and transfers, making it a universal platform for building interconnected blockchain ecosystems. The network is capable of processing approximately 1,000 transactions per second, demonstrating its scalability and efficiency.
Polkadot recently implemented a significant update called Asynchronous Backing. It optimizes the block verification process of the relay chain, allowing it to produce blocks twice as fast. The protocol also supports three to five times more external data per block, increasing scalability.
To strengthen its presence and growth in Asia, Polkadot launched PolkaPort East in Hong Kong. This independent organization will build relationships with investors and expand Polkadot's presence in the Greater Bay Area. The Web3 Foundation provided a grant to PolkaPort East to support its initiatives.
PolkaPort East will focus on attracting participants to the Polkadot ecosystem, including projects, developers, venture capitalists, funds and general Web3 investors. The initiative will target university blockchain teams, fintech companies and local governments interested in blockchain technology.
At the moment, the price of Polkadot (DOT) reaches a local minimum of $6.4. During the week, the price fell from $7.6, a key level that had previously prevented its growth. The price found significant support at $7, where buying pressure was strong enough to prevent further declines.
Since mid-March, when the price of DOT rose to its previous record high of $11.55, the cryptocurrency has faced notable problems. The price then plummeted to a low of $5.80. After recovering from this low, DOT has been trading in a tight range between $6.40 and $7.50 since April 14.
Polkadot is often called one of the “sleeping giants” among the major altcoins. Analyst Michael van de Poppe identified strong indicators indicating a potential upward price movement. However, current technical indicators provide a mixed outlook.
In terms of fundamental growth, Polkadot is performing extremely well. They are focused on RWA (Real World Assets) and have many great projects within their ecosystem such as Centrifuge and Energy Web.
Right now the price is starting to creep up and I think this is still a great time to accumulate a position, says Michael van de Poppe.
The moving averages for #DOT are currently giving a sell signal. The RSI is at 38, which puts it in the “neutral” zone. This suggests that although the point is not currently overbought or oversold, it may be several weeks before there is a significant rise.
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