Polkadot: Positive outlook, key upgrades drive DOT up

Polkadot, as an interoperable blockchain, remains one of the largest and most popular networks in the top 20. Currently, its native currency DOT ranks 14th, ahead of Tron and NEAR Protocol. Despite the recent gains, it is still down 87% from its all-time high and faces a market correction.

Optimism and key upgrades

Despite the bearish market sentiment, investors remain optimistic about the future of DOT. One analyst believes that DOT will not only shake off weakness but also rebound to over $20 in the coming months. This confidence mainly comes from key developments in the Polkadot ecosystem.

Polkadot 2.0: Better on-chain governance

The upcoming Polkadot 2.0 upgrade will be a game changer. Polkadot is already interoperable and scalable, but the new upgrade will further enhance these features and introduce better governance.

Specifically, to solve the scalability problem, the parachain slot auction will be eliminated and the concept of core time will be introduced. Developers can dynamically purchase block space as needed without having to bid to lock resources in an auction. This will improve resource allocation, accessibility and efficiency.

In addition, Polkadot developers are introducing the OpenGov system for more decentralized governance, giving all DOT holders decision-making power.

JAM upgrade proposal passed, DOT has a promising future

The community recently approved the Join-Accumulate Machine (JAM) chain, paving the way for developers to build services similar to Ethereum smart contracts on the Polkadot relay chain. Former Ethereum developer Gavin Wood said this will make the network more accessible.

Increased staking drives price increases

In addition to network upgrades, more DOTs being locked up is also a huge driving force. Through staking, tokens are taken out of circulation, increasing scarcity. If activity increases and demand for DOT increases, it will have a positive impact on prices, helping it appreciate from its current range.

As of June 3, there were more than 1.4 billion DOTs in circulation. As of the fourth week of May, there were more than 820 million DOTs staked. Judging from the price chart, if the token breaks through $8, staking incentives and early rewards and capital gains will increase.

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