- Polkadot token has risen by more than 100% from the YTD low.
- Karura, a dApp in Kusama, jumped by over 45% on Thursday.
- Polkadot continues to face ecosystem challenges.
Polkadot price bounced back on Thursday as Karura surged. The DOT token rose to a high of $7.16, which was much higher than this week’s low of $6.38. It has jumped by more than 101% above the lowest point in 2023, giving it a market cap of over $9 billion.
Karura (KAR) price surging
Polkadot is one of the leading blockchain networks in the world. It is a platform that aims to be the biggest player in the decentralized application (dApp) industry. Over the years, Polkadot has welcomed many developers, who have launched projects across all industries like Decentralized Finance (DeFi) and gaming.
Acala and Karura are some of the most notable names in the ecosystem. Karura is an all-in-one dApp for Kusama while Acala is in the Polkadot network. Kusama is Polkadot’s canary network, where developers first launch their dApps before moving them to Polkadot’s ecosystem.
Karura was one of the best-performing tokens on Thursday. According to CoinGecko, it has jumped by almost 50% in the past 24 hours, giving it a market cap of over $25 million. According to DeFi Llama, Karura has over $5.8 million in assets while Acala has $28.2 million. The biggest players in the Acala Network are Acala Liquid Staking, Acala LCDOT, and Acala Euphrates.
Read more: How to buy Polkadot.
The other parts of the Polkadot ecosystem are not doing all that good either. Moonbeam has just $46 million in TVL, with its key dApps being Moonwell, Stellaswap, and BeamSwap. Moonriver has only $5.75 million in assets. This performance explains why Polkadot has underperformed other chains like Solana and Tron.
Therefore, the main reason why Polkadot price has more than doubled this year is because of Bitcoin’s performance and the ongoing altcoin season. Most tokens have rallied since the crypto winter ended a few months ago.
Polkadot price prediction
The daily chart shows that the DOT price has bounced back in the past few months. This rebound accelerated after the coin formed a golden cross pattern on December 4th. This happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. In most cases, it is one of the most accurate bullish views.
Most recently, the DOT token has flipped the key resistance point at $6.96, the highest point on April 18th. Therefore, the outlook for Polkadot is bullish, with the next point to watch being the YTD high of $7.77. A break above that price will see it push above $8 in the coming days.
