The native token of the Polkadot decentralized finance network has posted an impressive market recovery over the last two months. In mid-July, the DOT token was trading below $12; this was the result of a bearish market that brought Bitcoin and other major digital currencies down from the lofty trading ranges they had enjoyed since early January. In mid-September, DOT seemed to be on track to reach $40, which translates into a recovery greater than 250% in just eight weeks.
Bullish sentiment could carry DOT past it all-time-high trading record of $48, and it may also set the stage for a push towards $50, which would be a psychological trading level for many investors. The good news about this trend go beyond making traders happy; the Polkadot project has been blessed with a recent flurry of positive fundamental developments. As the situation stands, DOT could very well become the most valuable DeFi project to date.
To understand why Polkadot looks so attractive to fundamental investors, it is worth knowing that this project is financial ecosystem of parallel blockchains. This concept is one that is already familiar to cryptocurrency investors; what is new is that the Polkadot project is looking to bring the same functionality to the DeFi space.
As the industry is starting to take a serious look at smart contract programming, Polkadot is one of the projects that are leading the way. This platform allows for the creation of custom blockchain networks, with each blockchain capable of supporting a different type of decentralized application. It is important to note that the main reason why the DOT token is currently so valuable is due to the fact that the project has been running for several years now.
Another benefit of Polkadot is its native token. In comparison to the ethereum network, the DOT token has a very low supply and has a very low network transaction fee. This is a result of its use of Proof-of-Authority consensus. Also, as the network grows, there will likely be a positive inflationary effect because network security is proportional to network. In comparison to Ethereum, the DOT token has a very low supply and has a very low network transaction fee. This is a result of its use of Proof-of-Authority consensus.