Polkadot is an open-source project developed by the Web3 Foundation, is designed and managed by five commissioned teams. The DOT token serves three functions-governance, staking expertise, and bonding to “parachains”-and helps blockchain project power usage cases.
Parachains are close to the shards of the Ethereum. They distribute transactions across different nodes which enable for a network that is quicker and more scalable. And the first of those launches happened yesterday.
In August 2020, Plasm Network linked to Polkadot’s Rococo and was formally launched yesterday. The project is a layer-2 technology for dApp developers that runs over Polkadot, supports and runs smart contracts, and solves the critical scalability problem. “Our highest priority in 2021 is to become a Polkadot parachain and build a dApps hub on Polkadot. Today we became the first parachain on Rococo V1,” Plasm Network said in a tweet.
Meanwhile, traders drove up the price of DOT to over $12.5. The token continues in a solid uptrend, trades around its exponential moving average of 34 periods, and currently has no resistance levels above it.
At press time, and as per the DeFi details page of Cryptoslate, there are reportedly over 899.80 DOT tokens in circulation with a $11 billion market value. In the last month, it has returned over 127 percent to investors, including 34 percent in the last day alone. Over the past 24 hours, Polkadot, currently ranked #5 by market value, is up 32.27 points. With a 24 hour volume of $5.67B, DOT has a market cap of $13.04B.