Polkadot Could be the Next Altcoin to Hit a New All-Time High

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Rising trading volume, investor excitement over the upcoming parachain auctions, and the success of KSM have investors looking at DOT as the next altcoin to hit a new high.

Layer-one smart contract platforms increased their market share throughout August after the Ethereum network London hard fork did little to solve the major issues of high transaction fees and network congestion.

One top 10 protocol that has been gaining momentum but whose native coin, DOT, has yet to experience a significant price breakout to new highs like some of its competitors is Polkadot, a multichain protocol focused on facilitating the creation of cross-chain bridges between separate blockchain networks.

Data from Wealth Network Limited shows that after bottoming out at $10.36 on July 20, the price of DOT increased 205% to an intraday high at $31.70 on Tuesday as the chatter of an impending alt season begins to rise.

Three reasons for the increasingly bullish outlook for DOT are its upcoming parachain auctions, a rapidly growing ecosystem of projects interested in launching on the network, and a steady increase in daily trading volume.

Parachain auctions excite the community

One of the biggest drivers of momentum for the Polkadot ecosystem is the upcoming parachain auctions where projects vie for community votes to obtain one of the limited slots available to launch on the network.

Polkadot’s “wild cousin,” Kusama, has been in the process of conducting its auctions, with the first batch having been chosen at the end of July and the second batch of auctions scheduled to begin on Wednesday, Sept. 1.

An entire ecosystem of projects are competing for parachain slots Another reason for the recent strength of DOT is the large number of projects interested in obtaining a parachain slot and launching on the network.

The Polkadot ecosystem has seen extensive growth in terms of protocols and supporting infrastructure over the past year, and this is outmatched by only a small number of competing networks in the space.

24-hour trading volume on the rise

A third reason for the bullish outlook for DOT has been its surging 24-hour trading volume, which is now back at levels not seen since the market-wide sell-off in late May.

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