Polkadot (CCC:DOT-USD) and its canary chain Kusama (CCC:KSM-USD) have been building a steady stream of hype for a while now through Kusama’s parachain auctions. Now, the Polkadot network is building even more hype as it prepares through parachain auctions of its own. Seen as one of the most premier opportunities for a burgeoning blockchain project, the auctions have been long-awaited and will surely fetch the network plenty of capital. With the news, investors are seeking out Polkadot price predictions.
Polkadot offers a unique prospect to developers: put your project on the network, and receive your own dedicated chain to run on. This is a best-case scenario for developers; having a dedicated chain allows one to run wild, with vastly increased scalability, dedicated validators to keep things running smoothly, interoperability with other chains, and governance of a project’s own choosing. They are essentially independent conglomerates who work under a united umbrella.
Until now, the only way a developer could get its own parachain is through Polkadot’s canary network, Kusama. Kusama’s parachains are a sort of test net, allowing developers to work out all of their project’s kinks in a robust sandbox before moving to the Polkadot main network. Kusama only has 100 parachains, meaning any time a chain becomes available, a whole host of developers are vying for a single spot. For this reason, the network auctions its chains to developers in an innovative and highly lucrative process. Over 2.4 million KSM have been contributed to auction campaigns; at its current value of $360, that’s over $860 million.
Polkadot to Launch Parachain Auctions, Stirring Investor Interest
Kusama’s parachains are highly contested because they allow some of the highest performance for a project across the entire blockchain industry. However, Kusama is just the younger sibling of Polkadot; the real prize is to make it to the main network. Polkadot is now preparing to rollout parachains on its primary network, offering an even more appealing opportunity to developers.
Today, Polkadot is announcing its intent to begin auctioning off parachain slots beginning on Nov. 11. Using a similar structure to Kusama’s auctions, the bidding war will take place over a seven-day period, ending at a randomly decided time during the final day; this lack of a hard ending time makes “bid sniping” impossible.
This is truly the big leagues for a developer. The idea of getting one’s own dedicated chain on one of the highest-scaling networks is going to drive up capital coming to the network without a doubt. As such, the DOT coin is boasting an 18% gain on today’s session. Investors are flocking to the coin, seeing how its trading volume is increasing over 130% as well.
Polkadot Price Predictions Heat Up Ahead of Auctions
With the auctions coming soon, and DOT price flying upward on the news, investors are seeking out Polkadot price predictions. How high might DOT go on the coming parachains? Let’s take a look at what the analysts are predicting:
- WalletInvestor’s 12-month prediction for DOT targets a price of $59.66 by October of 2022.
- CoinPriceForecast thinks the coin can blow that price out of the water in just months. By December, the site expects DOT to reach a value of $80.54.
- A slightly less bullish DigitalCoin thinks that DOT will see a price of $61.37 by the end of the year.
- The Economy Forecast Agency says the coin will be good for a high of $58.14 by the close of 2021. By October of 2022, the site expects that price to rise to $91.68.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.