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- Polkadot community is gearing up for the entire protocol upgrade to Polkadot 2.0.
- These fundamental and other positive trends in the Polkadot ecosystem present good boosts for DOT price.
In anticipation of the impending launch of Polkadot 2.0, speculations is high on whether the update would be a game changer for Decentralized Finance (DeFi) or if it is just overhyped. These discussions follow a potential rally for Polkadot’s native cryptocurrency, DOT.
Polkadot 2.0 Update
Polkadot is a leading layer zero blockchain platform that enables secure communication across blockchains. As seen in a YouTube video by Crypto News Flash, the Polkadot’s ecosystem is booming, with over 3.1 million accounts and 1.2 million holders.
Gavin Wood, co-founder of Ethereum and the creator of Polkadot, presented his vision for Polkadot 2.0 in June 2023. Polkadot 2.0 represents a strategic move for the network, intending to further optimize the usage of its core processing resources and transform Polkadot from a collection of linked blockchains into an integrated, worldwide computing platform.
As Crypto News Flash had formerly announced, Polkadot 2.0 aims to revolutionize the Polkadot ecosystem with the introduction of the Agile Coretime system, replacing the auction-based model. This new technology will allow parachains to adapt resource procurement depending on actual demands and user activity via flexible acquisition of “core time” and block space.
To fully comprehend the concept, parachains are blockchains that are linked to Polkadot’s relay chain. Parachains run parallel within the ecosystem, and any type of data can be transmitted between them because of Polkadot’s cross-chain composability, allowing for new use cases.
Furthermore, Polkadot 2.0 also prioritizes developing an app-centric base layer with shared security, interoperability, high chain customization, better scalability, and streamlined app-chain onboarding processes.
DOT Braces for a Potential Rally
As of the latest data from CoinMarketCap, DOT is trading at $9.55, demonstrating a 1.18% increase in the past day, with its market capitalization standing at $13.6 billion. DOT’s potential for further rally has been increased with Polkadot’s parachains being leveraged for innovative projects like Acala, Moonbeam, and HydraDX.
Reiterating Crypto News Flash’s earlier reports, Polkadot has launched its newest community token, PINK, as part of its continued efforts to increase community engagement and ecosystem growth.
Crypto expert Michael van de Poppe stated in a post on X that the ongoing innovations within Polkadot and the expectation for Polkadot 2.0 might propel DOT to new heights, with a current overhead price target of $17. Moreover, the TVL has increased on Polkadot, indicating a high degree of asset staking and trust in the platform.
However, DOT’s popularity has recently fallen, despite an initial surge in social dominance. This could suggest a brief period of investor apathy, providing purchasing chances ahead of large price moves. While DOT may not be the most popular coin to own, it could reclaim its previous glory, especially with the intriguing possibilities set to be deployed this year.