Polkadot: ninth auction for parachains concluded
Polkadot: ninth auction for parachains concluded
Blockchain

Polkadot: ninth auction for parachains concluded

By Marco Cavicchioli - 31 Jan 2022

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The auctions for Polkadot’s parachains continue. The ninth auction has just ended and Centrifuge prevailed over the others. 

The next auction will be held this week starting with block 8,868,510. 

The winner of the ninth parachain auction of Polkadot

Centrifuge is a protocol that aims to create a system for the tokenization of traditional financial assets, thanks to a relatively complex process that also allows tokenization of e.g. real estate, royalties and cash advance invoices, thus making them tradable on blockchain.

These assets, once tokenized, can also be used as collateral to obtain loans, thanks to decentralized algorithm at reduced costs.

Polkadot parachain
The launch of the parachain auctions had raised the price of DOT

The price of DOT

Polkadot’s parachain auctions began a few months ago, and are following the roadmap laid out by the project. 

Initially, the launch of the parachain auctions months ago had driven up the price of DOT, probably precisely because in order to participate, it was necessary to use the native cryptocurrency of the Polkadot project. But then the enthusiasm, from this point of view, has waned a bit. 

In fact, the current price is less than half of what it was at the end of October, and 68% lower than the highs reached on 4 November, when it pushed to almost $55. 

However, DOT’s price parabola of the last three months is perfectly in line with that of the main cryptocurrencies, starting with BTC and ETH, despite registering higher losses than ATH. 

However, it is worth noting that at the beginning of November Polkadot came from a period of real euphoria, much greater than that which existed at the time on Bitcoin or Ethereum, so much so that the maximum DOT peak was reached six days before that of BTC or ETH. 

For example, compared to the price at the beginning of August 2021, DOT is only a few percentage points below, which is about the same as BTC and ETH. In other words, the October boom, which brought the price of DOT from $27 to $45, was larger than the price of Bitcoin and Ethereum in the same period, making the subsequent descent larger. 

In the last 30 days, DOT has lost 34%, compared to -20% for BTC and -31% for ETH. 

There is therefore a sort of disconnect between the trend of the last months of DOT value and the success of parachain auctions, so much so that it is assumed that the peaks of October and November were mainly due to speculation. 

Marco Cavicchioli

Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".

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