The uptrend in the price of Polkadot accelerated on Monday as demand for cryptocurrencies increased following relatively weak U.S. jobs data. The price of DOT is also rising as the second parachain auction continues. The coin is trading at $34.62. That’s its highest level since May 19. This brings its market cap to more than $33 billion.
DOT momentum accelerates
Polkadot is a blockchain project started by Gavin Wood. He was originally part of the team that developed Ethereum. The network was built from the ground up using proof-of-stake technology, which makes it relatively faster and more reliable than Ethereum. It achieves this strength through sharding, cross-chain composability, and upgrade capabilities.
In recent months, the number of developers building on Polkadot has increased. The largest project using this technology is Kusama. Kusama was developed by the Polkadot team for testing purposes. Today, Kusama tokens have a market cap of more than $3.3 billion.
The other major projects based on Polkadot are Acala Network, ChainX, Edgeware, Darwinia, and Phala Network. These are some of the most popular projects in the market today.
Polkadot price is rising after the relatively weak American labor market data. The data shows that the country’s job market grew by only 235,000 jobs in August. This is the lowest growth in more than three months.
The U.S. Bureau of Labor Statistics attributed the slowdown to the effects of the Covid Delta variation. During the same period, the unemployment rate fell to 5.2 percent, while wages rose more than 4.3 percent.
These numbers are notable for Polkadot and other cryptocurrencies because of the impact on Federal Reserve monetary policy.
The Polkadot price is also rising because investors are focused on the biggest Parachain auction ever. The auction will run until September and is expected to produce new winners. The previous winners were Karura, Moonriver, Shiden, Khala and Bifrost.
Polkadot Price Forecast
The daily chart shows that the DOT price in the last week.n was in a strong uptrend. This trend began when the coin found strong support at $10.25. That was the lowest level in July. Over time, Polkadot’s price moved above the moving averages (MA) of the 25-day and 50-day lines, while the Relative Strength Index (RSI) showed an uptrend.
Therefore, the coin is likely to maintain the uptrend as investors target the major resistance at $40. That’s about 18% above current levels.