Polkadot’s Parachain Auction Launch News Sends DOT Up By 16%

There is a lot of excitement among crypto enthusiasts regarding Polkadot. The popular blockchain ecosystem will launch its parachains shortly. Following this news, the DOT price has spiked by over 17%, and Polkadot may overtake Solana in market cap. 

Polkadot Parachain Auctions Are Coming

A primary selling point of the Polkadot ecosystem is how its parachains will work. Every parachain is a distinctive blockchain that operates in parallel to the leading Polkadot network. Additionally, a parachain hooks into the Polkadot Relay Chain. Through this technology stack, every parachain can focus on one particular aspect – or multiple aspects – without overburdening the main Polkadot chain. 

These parachains have been rumored for a while now, yet the details became more concrete. Auctions for parachain slots will occur on November 11, 2011. The community chose that date after the on-chain governance token holders voted unanimously in favor. Polkadot also reaches a significant milestone, as parachains are the final crucial technical element in the equation. Completing this process means the Polkadot team has delivered don all promises made in the initial whitepaper.

The parachain auctions will occur in several batches. The first batch will go live on November 11, followed by one auction per week for five consecutive weeks. Per these guidelines, the final auction will occur on December 9, 2021. An initial bidding period of two days will be in effect, followed by a five-day ending period. Polkadot auctions are held in transit for one month. 

None of this would be possible without Kusama, the sandbox designed for developers to test their applications before launching on the Polkadot ecosystem. Kusama was the first to implement 11 parachain slot auctions, which were completed without any noteworthy flaws. Moreover, these Kusama auctions saw participation from over 49,000 unique active addresses. Deploying parachains on Kusama has provided valuable insights and allowed for further optimization of this process before bringing it to Polkadot.

DOT Price Surge

After the announcement of the first parachain auctions on Polkadot, the value of DOT started to climb. The asset notes a 16.5% price increase over the past 24 hours and has surpassed the $41 mark without much resistance. If this trend continues, it is a matter of time until DOT sets a new all-time high. The asset recorded that high value on May 15 at $49.35. 

As the code for parachain auctions has been audited and is ready to go, such market excitement is not unexpected. Following the strong price performance, Polkadot’s market cap inches closer to Solana’s. There is still a $3.5 billion gap between both projects at the time of writing. However, Polkadot has increased its market cap over USDC to almost $10 billion. The project is in a very strong market position thanks to the parachain auction news.