The Polkadot price had a strong October as demand for cryptocurrencies rose. The DOT token jumped to $45, which was about 330% above the lowest level in July. It rose by more than 72% in October, bringing its total market capitalisation to more than $44 billion.
Parachain auctions in focus
Polkadot is a blockchain project that was started by Gavin Wood, a computer scientist who was also the co-founder of Ethereum.
Polkadot is a network thst ensures true interoperability through its technology known as relay chains. The network enables developers to build quality decentralized applications.
These applications can get permissioned data from private blockchain and then use it in public blockchain. For example, it can help to decentralize the education sector whereby a school can send a proof of degree verification to a public chain.
Polkadot is relatively different from other blockchain projects. For one, it has another platform that enables developers to test their applications. It is known as Kusama and has a token that is valued at more than $3 billion.
Another difference is that apps that end up in Polkadot fo through what is known as a parachain auction. At its current state, the network can only support about 100 applications. This number can change if the members of the ecosystem votes so.
During a parachain auction, members of the ecosystem can bond their tokens to their favourite projects. In the past auction, the winners were Karura, Moonriver, Shiden Network, Khala Network, and Bifrost.
Therefore, the Polkadot price will be in the spotlight in November because of the parachain auction that will take place. The auctions will start on November 11 and then run until December 17th. There will be five batches in total.
Polkadot price prediction
The daily chart shows that the Polkadot price has been in a major bullish trend in the past few months. The price has moved above the 25-day and 50-day moving averages (MA) and is just a few points below its all-time high of $50.
It is also slightly above the important support level at $38.92, which was the highest level on September 14th.
Therefore, there is a likelihood that the DOT price will blast past $50 this month. This view will be invalidated if the price moves below the key support at $38.92.
