The New Jersey Crypto News
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Dogecoin
    • All Alt Coin
  • Learn
    • Learn

      How to Trade Futures Contracts on Changelly PRO

      11/14/2021

      Learn

      EtherLite (ETL) Cryptocurrency Price Prediction

      11/12/2021

      Learn

      How to Trade Bitcoin Futures

      11/12/2021

      Learn

      How to Start Trading Cryptocurrency

      10/21/2021

      Learn

      How to Create Your Own Cryptocurrency

      10/13/2021

  • Analysis
    • Analysis

      Bitcoin is Struggling, But It’s Too Early to Say Bulls Have Given Up

      12/29/2021

      Analysis

      Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

      12/29/2021

      Analysis

      Ethereum Recovery Could Soon Fade If ETH Fails To Surpass $4k

      12/28/2021

      Analysis

      Charles Hoskinson Shares Cardano Plans for 2022

      12/28/2021

      Analysis

      Bitcoin Prints Bullish Pattern, Why BTC Could Surge To $50K

      12/27/2021

  • Blockchain
    • Blockchain

      Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

      12/29/2021

      Blockchain

      Italian Sports Car Maker Ferrari Inks Multi-Year Deal With Blockchain Firm Velas Network AG…

      12/29/2021

      Blockchain

      ProShares Files for New Metaverse ETF With U.S. SEC

      12/28/2021

      Blockchain

      Ozzy Osbourne Reveals Cryptobatz NFT Project Paying Tribute to His Iconic Bat Bite –…

      12/28/2021

      Blockchain

      Binance Trading Platform Licenses in Bahrain, Canada

      12/28/2021

  • Market Cap
All Alt Coin

Polkadot: Is the parachain auction hype REALLY worth it

by Miki 10/14/2021
by Miki 10/14/2021 0 comment

With the global crypto-market cap down by over 0.64%, Wednesday started off as a gloomy day for most large-cap coins. Nonetheless, like always, there were a couple of exceptions and Polkadot was one of them.

The 8th-ranked alt by market capitalization managed to appreciate by more than 15% in a 24-hour window. In fact, it was trading well above $40, at press time.

As highlighted in a recent article, the state of most of DOT’s metrics has been quite impressive too. Thus, the current price rise phase comes as no surprise, given the favorable on-chain environment.

The parachain buzz has been making a lot of noise lately. People from the community are quite excited about the same. But, is it all worth it?

Essence of parachains

With the presence of over a thousand public blockchains, the crypto-space has been transforming itself into a multi-chain universe. One where each chain specializes in something.

Interoperability has, however, been a major hindrance in the space and in effect, has made the market look even more fragmented than it actually is.

Polkadot, with its distinctive approach, has been trying to solve this very problem. The protocol has been designed to operate two different types of blockchains. The first type is a relay chain [the main network] where transactions are usually permanent in nature. The other type [parachains] is usually created by users and directly feeds into the main blockchain to benefit from its security.

As a matter of fact, parachains can interact and exchange data and assets with each other within the system and can additionally connect to external networks like Bitcoin and Ethereum using bridges. They also offer a host of other features that includes forkless upgrades – something that Ethereum has never done or offered before.

Debunking the ‘catalyst’ myth

Parachain auctions have been going on for quite some time now on Polkadot’s sister chain – Kusama. These auctions are essentially being held to shortlist parachains to be added to Kusama’s relay chain.

The network began its auction spree in mid-June. The first five auctions of round one wrapped up by 19 July and every auction more or less lasted for a week. Post a halt in the middle to evaluate the network’s performance, the second round began only by 31 August.

The auction for the 11th slot had just wrapped up, at the time of writing.

Source: Kusama Network

On any usual day, one would expect such events to act as a price catalyst, right? However, that hasn’t been the case with Kusama. During the first round that took place in the mid-June to mid-July period, KSM’s value dropped by 68% on the price charts. Post that, during the evaluation period, it did manage to rally by 100%, however.

Nevertheless, when the next round began, KSM again started shedding its value. From the date of the 6th auction, KSM has shed close to 30% of its value. So, are these auctions merely a negative price catalyst? It’s unlikely.

The June-July period saw a huge number of coins in the market lose value. It was typically the flash crash aftermath phase. Similarly, September has historically not been a great month for the broader market. Thus, just like most cryptos, even KSM struggled on the price charts.

To a fair extent, it can be asserted that macro-factors have had a more imposing effect on KSM, rather than its in-house positive developments.

KSM/USDT || Source: TradingView

Given how everything has unfolded for Kusama, one shouldn’t expect Polkadot’s auctions to act as catalysts either.

Having said that, it doesn’t mean that DOT’s rally will not continue. It just means that the auctions wouldn’t provide DOT an additional cushion of support.

Source link

Views: 1
AuctionHypeParachainPolkadotWorth
Share
0
FacebookTwitterPinterestEmail
previous post
“Ethereum Has The Most Upside As A Crypto Investment,” Mark Cuban
next post
Yup Raises $3.5 Million in Seed Funding to Empower Social Creators and Curators

Related Posts

Are Solana’s bulls really strong enough to halt...

12/29/2021

IXFI Announces Launch of New-Age Exchange Platform

12/29/2021

Litecoin repeating history will have this effect on...

12/28/2021

More than just a game – what GameFi...

12/28/2021

Even as network hits one million users, FTT...

12/28/2021

Fintech Expert Makes Six Bold Predictions for Crypto...

12/28/2021

A recovery rally in play for Sushiswap, as...

12/28/2021

SEC Accused of Deliberately Trying to ‘Kill’ XRP...

12/28/2021

Recent gains may finally boost Aave’s dominance in...

12/28/2021

Santa Floki Price Rallies 5,000% after Elon Musk’s...

12/28/2021

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.

Recent Posts

  • Are Solana’s bulls really strong enough to halt further decline

    12/29/2021
  • Elon Musk thinks this individual could be the potential Bitcoin (BTC) creator Satoshi

    12/29/2021
  • Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

    12/29/2021
  • Bitcoin is Struggling, But It’s Too Early to Say Bulls Have Given Up

    12/29/2021
  • Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

    12/29/2021

Categories

  • All Alt Coin (2,280)
  • Analysis (312)
  • Bitcoin (1,302)
  • Blockchain (1,068)
  • Dogecoin (700)
  • Ethereum (304)
  • Learn (139)
  • Ripple (149)

About Us

About Us

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, blockchain, Market, and more.

Featured Posts

  • Ethereum Gains Momentum, Why Bulls Could Aim More Upsides

  • Here’s Why Dogecoin Withdrawals Are Frozen On Binance

  • Mexican Billionaire To Accept BTC for His Banking Business

Recent Posts

  • Are Solana’s bulls really strong enough to halt further decline

  • Elon Musk thinks this individual could be the potential Bitcoin (BTC) creator Satoshi

  • Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

Categories

  • All Alt Coin (2,280)
  • Analysis (312)
  • Bitcoin (1,302)
  • Blockchain (1,068)
  • Dogecoin (700)
  • Ethereum (304)
  • Learn (139)
  • Ripple (149)
  • Facebook
  • Instagram
  • Linkedin
  • Contact
  • Privacy Policy
  • Terms & Conditions

@2021 -thecryptonewsweb.com - All Right Reserved.

The New Jersey Crypto News
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Dogecoin
    • All Alt Coin
  • Learn
    • Learn

      How to Trade Futures Contracts on Changelly PRO

      11/14/2021

      Learn

      EtherLite (ETL) Cryptocurrency Price Prediction

      11/12/2021

      Learn

      How to Trade Bitcoin Futures

      11/12/2021

      Learn

      How to Start Trading Cryptocurrency

      10/21/2021

      Learn

      How to Create Your Own Cryptocurrency

      10/13/2021

  • Analysis
    • Analysis

      Bitcoin is Struggling, But It’s Too Early to Say Bulls Have Given Up

      12/29/2021

      Analysis

      Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

      12/29/2021

      Analysis

      Ethereum Recovery Could Soon Fade If ETH Fails To Surpass $4k

      12/28/2021

      Analysis

      Charles Hoskinson Shares Cardano Plans for 2022

      12/28/2021

      Analysis

      Bitcoin Prints Bullish Pattern, Why BTC Could Surge To $50K

      12/27/2021

  • Blockchain
    • Blockchain

      Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

      12/29/2021

      Blockchain

      Italian Sports Car Maker Ferrari Inks Multi-Year Deal With Blockchain Firm Velas Network AG…

      12/29/2021

      Blockchain

      ProShares Files for New Metaverse ETF With U.S. SEC

      12/28/2021

      Blockchain

      Ozzy Osbourne Reveals Cryptobatz NFT Project Paying Tribute to His Iconic Bat Bite –…

      12/28/2021

      Blockchain

      Binance Trading Platform Licenses in Bahrain, Canada

      12/28/2021

  • Market Cap
  • RelevantRelevant(REL)$0.825.35%
  • Heart NumberHeart Number(HTN)$0.000553-30.47%
  • TadpoleTadpole(TAD)$7.32-1.76%
  • SEENSEEN(SEEN)$2.05-2.27%
  • EvedoEvedo(EVED)$0.082301-0.80%
  • MarginswapMarginswap(MFI)$0.184214-2.17%
  • SakeTokenSakeToken(SAKE)$0.0127234.37%
  • WTF TokenWTF Token(WTF)$0.0113500.16%
  • BNSD FinanceBNSD Finance(BNSD)$0.005460-5.83%
  • RobotinaRobotina(ROX)$0.00266138.50%
  • CageCage(C4G3)$0.005010-3.67%
  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • PolkaBridgePolkaBridge(PBR)$0.439876-7.02%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Falcon ProjectFalcon Project(FNT)$0.000366-2.23%
  • DYORDYOR(DYOR)$0.00002020.53%
  • TICOEX TokenTICOEX Token(TICO)$0.0013640.52%
  • MMS Cash TokenMMS Cash Token(MCASH)$1.000.00%
  • bitcoinBitcoin(BTC)$29,552.001.63%
  • ethereumEthereum(ETH)$1,986.022.08%
  • tetherTether(USDT)$1.000.00%
  • usd-coinUSD Coin(USDC)$1.000.02%
  • binancecoinBNB(BNB)$313.024.74%
  • rippleXRP(XRP)$0.4171182.25%
  • Binance USDBinance USD(BUSD)$1.00-0.08%
  • cardanoCardano(ADA)$0.535.19%
  • SolanaSolana(SOL)$50.392.43%
  • dogecoinDogecoin(DOGE)$0.0852651.78%
  • polkadotPolkadot(DOT)$9.953.32%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$29,541.001.75%
  • Lido Staked EtherLido Staked Ether(STETH)$1,934.460.97%
  • AvalancheAvalanche(AVAX)$29.914.51%
  • tronTRON(TRX)$0.0743073.42%
  • VectoriumVectorium(VECT)$425.81-3.49%
  • Shiba InuShiba Inu(SHIB)$0.0000122.22%
  • daiDai(DAI)$1.000.10%
  • Power CashPower Cash(PRCH)$0.017570881.24%
  • AlexAlex(ALEX)$0.068435-0.04%
  • litecoinLitecoin(LTC)$70.313.37%
  • CronosCronos(CRO)$0.1904282.10%
  • LADZLADZ(LADZ)$0.0686894.36%
  • leo-tokenLEO Token(LEO)$4.90-1.47%
  • matic-networkPolygon(MATIC)$0.653.89%
  • NEAR ProtocolNEAR Protocol(NEAR)$6.014.63%
  • FTX TokenFTX Token(FTT)$30.151.84%
  • HederaHedera(HBAR)$0.389473-3.44%
  • bitcoin-cashBitcoin Cash(BCH)$193.792.18%
  • RareRare(RARE)$0.0461220.00%
  • chainlinkChainlink(LINK)$7.083.56%