Polkadot (DOT) has reported a recovery of 256% during the previous 56 days. This is by itself has been spectacular. However, the price remains 23% less than its ATH of $49.80 posted 4 months ago. Nevertheless, the market capitalization value of the altcoin stands at $39Bn and has outperformed ETH by about 66% in the last month.
Reasons Indicating A New Polkadot ATH Is In Sight
The ecosystem of Polkadot has seen consistent growth. As such, it has increasingly integrated into DeFi. One such example is the parachain of Moonbeam that has tokens created on the development tool of Polkadot (called Substrate). On 9th September, Moonbeam announced that they were partnering with Lido. Lido is presently deployed to Terra and Ethereum.
The most recent update was by dTrade which is a DEX. In 2021 May, it had raised $6.4Mn as part of a round of seed funding. Afterward, a further $22.8Mn was gathered in the form of funds to make the market. Its aim was to provide “deep liquidity”. Some of the most significant market makers in crypto supported it.
Derivatives data are always the most essential for investors looking to invest in any crypto, be it Polkadot or otherwise. The total futures of Polkadot’s open interest has grown to $685Mn from $360Mn in a month. This indicates positivity and the leverage traders’ willingness to maintain long positions even though there is a rally happening.
In September’s first week, a healthy optimistic dose came to the forefront due to the 8-hour rate of funding reaching 0.10%. This is equal to a weekly rate of 2.1%. However, there was a reversal in the situation following the price crash of 35% on 7th September. The most possible situation will be that the confidence of investors will return as Polkadot continues delivering.
