Polkadot launches first parachain as DOT price surpasses $14
The high-speed blockchain has garnered quite the fan following in the past year.
Parachains on Polkadot
Blockchain ecosystem and crypto protocol Polkadot saw the launch of its first-ever parachain yesterday, a move that pushed the prices of its DOT token to over $14 as of press time.
An open-source project founded by the Web3 Foundation, Polkadot is built and maintained by five teams commissioned by the foundation. Its DOT token serves three functions — governance, staking abilities, and bonding to “parachains” — and helps power use cases for the blockchain project.
.@Plasm_Network has deployed the first parachain on Rococo V1.
"Our highest priority in 2021 is to become a Polkadot parachain and build a dApps hub on Polkadot. Today we became the first parachain on Rococo V1."https://t.co/4IepafdL90
— Polkadot (@Polkadot) January 13, 2021
Parachains are similar to Ethereum’s shards. They spread transactions across multiple nodes and allow for a faster and more-scalable network.
However, the slots for such Parachains are limited, with Polkadot intending to auction them off in nonpermissive candle auctions. In the mid-term (over the next few years), only about 100 parachains slots are available for teams and developers, which creates a huge gap between market demand and supply.
And yesterday saw the first of those launches.
Plasm Network and DOT booming
Plasm Network connected to Polkadot’s Rococo in August 2020 and was officially launched yesterday. The project is a layer-2 technology that runs over Polkadot, supports and runs smart contracts, and solves the critical problem of scalability for dApp developers.
“Our highest priority in 2021 is to become a Polkadot parachain and build a dApps hub on Polkadot. Today we became the first parachain on Rococo V1,” Plasm Network said in a tweet.
As stated back in August, the launch on Plasma would see Plasm launch a PoC with Acala Network, a cross-chain finance hub, and stablecoin protocol to make the first Polkadot cross-chain use case.
This would bring about the first cross-chain, an interoperable program to the broader Polkadot ecosystem.
Meanwhile, traders pushed up the price of DOT to over $12.5 upon news of the launch. The token remains in a firm uptrend, trades about its 34-period exponential moving average, and currently has no resistance levels (from past buyers) above it.
At press time, and as per Cryptoslate’s DeFi data page, there are currently over 899,80 DOT tokens in circulation with a market cap of $11 billion. It has returned over 127% to investors in the past month, and 34% in the past day itself.
At the time of press, Polkadot is ranked #5 by market cap and the DOT price is up 32.27% over the past 24 hours. DOT has a market capitalization of $13.04 billion with a 24-hour trading volume of $5.67 billion. Learn more ›
At the time of press, the global cryptocurrency market is valued at at $1.07 trillion with a 24-hour volume of $133.55 billion. Bitcoin dominance is currently at 68.80%. Learn more ›