A number of bidders will participate in Polkadot’s first parrot auctions this week, a process that tends to put pressure on the DOT from buyers, while giving promising blockchain projects a chance to show why they offer the most competitive solutions to a variety of current requirements. in the coding sector.

Polkadot’s current parachine auctions follow the success of similar auctions on its sister network Kusama, with projects such as Moonriver (MOVR) and Karura receiving the parachin slot the following year.

Top 5 rafts in Kosam according to bonus rating. Source: Parachains
The Kusama Parachain auctions started during the downturn in the broader cryptocurrency market and played a role in recovering KSM from the low of $148.85 on July 19 at a current price close to $457 as the promised auction tokens were taken out of circulation.

Below are some of the parachine auctions currently running on the Polkadot network, and like the auctions in Kusam, the DOT could gain momentum as more tokens are removed from the circulating supply.

The top 4 parachinos are currently being auctioned off on Polkadot. Source: Parachains
Acala (ACA) is a smart contract platform that brings together a single team, described as Polkadot’s decentralized finance (DeF) and liquidity hub. The protocol is compatible with Ethereum (ETH) and has built-in liquidity and out-of-the-box financial applications including trustless exchange, decentralized stablecoins (aUSD), and DOT Liquid Staking (LDOT).

Acala is a subsidiary of the Karura DeFi Protocol (KAR), which runs on the Kusama network and offers many of the same features.

Considering that DeFi has developed into one of the core segments of the cryptocurrency ecosystem, a large and well-established DeFi protocol that can attract liquidity and provide a certain amount of profit to token holders is a must for every network.

Moonbeam (GLMR) is a fully compatible Ethereum smart contract platform designed to simplify the launch of multi-chain projects on the Polkadot Network.

Moonbeam’s sister network on Kusama is Moonriver, offering the highest bonus rating of any parrot ever released on the Kusama Network.

Streamlining network switching on Polkadot is an important issue that must be resolved in the current market, as high Ethereum fees remain one of the main reasons investors and developers have turned to cheaper alternatives such as Polygon, Fantom and Avalanche.

If Moonbeam can help simplify the process for interested projects, it can help increase the overall strength and activity of Polkadot.

Astar (ASTR) is a protocol focused on building a scalable and interoperable infrastructure for Web3.0 by creating a multi-virtual machine support platform that connects interoperable Layer 1 protocols to the Polkadot network.

Astar can also serve as a scalable smart contract platform that helps Polkadot’s delivery chain, which cannot support smart contracts.

Parallel Financing
Parallel Funding (PARA) is a DeFi and automated money market (AMM) lending protocol that backs assets backed by Polkadot and Kusama and also gives token holders the ability to leverage their assets while earning interest.

The protocol aims to provide higher liquidity, profitability and capital efficiency to the Polkadot ecosystem, and users will eventually be able to lend, invest and borrow assets from any of the supported networks.

On the topic: Protocol Deva Akala Raise $400 Million Group Loans During First Parachin Auction of Polkadot

DOT and KSM get positive before auctions
Polkadot’s current parachute auctions are likely to put positive pressure on the DOT price as users buy tokens to participate in the crowds, effectively taking the tokens out of circulation for two years.

As shown in the chart below, the introduction of crowdsourcing on Kusam in June 2021 increased the price of the token, while the DOT price movement was more constrained.

KSM/USDT vs DOT/USDT 4-hour chart. Source: TradingView
The opposite is happening now, as the DOT price appears to be higher than the KSM price, and this process began in mid-September when the hype around the Polkadot parachain auctions started to rise.

Since eleven batches of parachine auctions will be held per week from November 11, 2021 to March 10, 2022, there is a strong possibility that the DOT price will continue to rise as long as the demand for access continues.

Source: CoinTelegraph