Analyst Thinks DOT Will Reclaim Former Glory With Polkadot 2.0
November 28 2023 - 2:00PM
NEWSBTC
DOT, the native currency of Polkadot, a smart contract platform,
remains under pressure, posting sharp losses after soaring to an
all-time high of around $55 in 2021. The coin is trading at about
$6, volatile but up roughly 45% from 2022 lows, buoyed by the
broader recovery across the crypto scene. Will DOT Break Above
Immediate Resistance Levels? Despite DOT’s woes, one crypto trader,
@Ashcryptoreal, is bullish on the coin’s prospects,
pointing to the eventual implementation of Polkadot 2.0, a critical
update for the cross-chain network. Taking to X on November 27, the
crypto trader believes that Polkadot 2.0 will fix present issues
plaguing the smart contract platform. Specifically, Polkadot
2.0 represents an overhaul set to introduce several enhancements
that could, if executed as stated, propel DOT above current
resistance levels. With rising DOT demand, the coin, and by
extension, the platform, could soar, rising to its former glory as
one of the leading blockchains with dense user activity.
Related Reading: Shiba Inu Burn Rate Skyrockets Close To 500,000%
in 24 Hours Looking at price action, DOT is moving within a broad
horizontal range with caps at around $3.5 and $7.5. Despite the
recent spike, which saw the coin roar by 45%, prices are moving
inside the bull bar of early November. Based on this, there
must be a sharp expansion from spot levels above $5.6 with rising
trading volumes for buyers to be in charge. Even so, the current
formation still favors buyers. What’s The Big Deal About Polkadot
2.0 Polkadot 2.0 overhauls certain features as it is currently in
the network. However, most importantly, analysts observe that
proposed changes could enhance the network’s capabilities and
attract more developers. After the update, Polkadot will
migrate from the dynamic block space allocation system, allowing
developers to purchase block space as needed, either in bulk or
individually. This flexibility could make the network more
appealing to various projects. Additionally, Polkadot 2.0 will
introduce elastic cores, enabling the network to adapt to varying
computing demands depending on use. This adaptability may make the
network more efficient. Moreover, it adapts to the diverse needs of
developers. Related Reading: Crypto Analyst Predicts 4400% XRP
Price Surge To $27, Here’s When The concept of coretime, which
measures computing resource demands, will be a notable addition to
Polkadot 2.0. Like in EOS, resources in “core time” will be
purchased through auctions or pay-as-you-go basis, allowing
developers more control. Analysts expect these changes to increase
the demand for DOT since the coin serves as a medium of exchange.
All on-chain transactions are settled in DOT. Feature image
from Canva, chart from TradingView
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