Polkadot (DOT) is witnessing a steep increase in its value. The Polkadot coin was trading at a value of $30.25 at the time of writing this article. Compared to its value of around $25 one week earlier, the value of the Polkadot network is on the rise. In addition to the overall increase of demand for crypto, the increased DeFi capabilities of the Polkadot network are considered the major reason for the value hike. The network has been witnessing an increase in the trading volume since the beginning of this week. Analytics also indicate that the decrease in the circulating supply of Polkadot tokens is also a reason why the DeFi interoperability platform is soaring.
High-demand Funding for Parallel Finance
Probably the most significant reason for the value hike of Polkadot has to do with the growth of a company called Parallel Finance, a lending and staking protocol that is based on the DeFi blockchain from Polkadot. The company reached a total valuation of $150 million, thanks to the recent Series A round funding of $22 million. In addition to being one of the largest funding rounds seen on the canary network of Polkadot, the increasing popularity of Parallel Finance is expected to attract more investors. Recent months have seen a noticeable increase in the demand for investments in DeFi solutions, and the promises from the DeFi firm seem compelling enough.
Potential Integration with Wanchain
While Parallel Finance is expected to attract more customers into the Polkadot blockchain by offering a wide variety of lending and staking solutions, it is not the only news from the DeFi sector. Instead, Wanchain announced that it would work with Moonbeam to set up a cross-chain infrastructure on Moonriver, a solidity smart contracts platform on the Kusuma network. The new integration between Wanchain and Moonbeam will boost the Polkadot network, making it an effective platform for upcoming DeFi projects. The same is expected to attract more investors into the DeFi infrastructure in the coming months. The said integration is also likely to support how the Wanchain network can establish a direct connection with Polkadot in the future.
Bullish Move Expected to Continue
According to industry experts, Polkadot is expected to continue its high value in the coming months. It is considered a significant milestone that the token crossed the $29 mark, which was seemingly impossible until now. Now that the platform has picked up a bullish movement, the same is likely to continue until there is another opposing force. Even when we keep aside the increased performance of the smart contract and other DeFi platforms on the network, the high demand for cryptocurrencies is a boon for tokens like Polkadot — along with Solano and Ethereum. For how long we can see the increase in the value is another question, as it is difficult to predict the nature of cult following and other aspects of a crypto race.
Nevertheless, the recent developments seem to have helped those who already invested in Polkadot see its potential as tomorrow’s DeFi platform.
