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• In the past few weeks, Polkadot has been trading sideways, which is related to negative market sentiment.
• Polkadot has not yet shown signs of a breakthrough, as its resistance level is still set at around $17 and may reach $20-22
• Parachain provides institutional assistance for companies to establish and manage their own private blockchains.
• The retracement of the delayed release of the parachain has caused DOT transactions to trade sideways, approaching its support level.

Alternative blockchain attempts to provide answers to the scalability question that occupies most of the blockchain space. Chain-agnostic blockchains such as PolkaDot are designed to solve the controversial topic of interoperability. , Solana, or PolkaDot are all regarded as “Ethereum killers”, but they still weaken their usability.In addition, the current financial stage of cryptocurrency prevents investment opportunities

PolkaDot asks for support

In the fast-paced and innovative field of encryption, “soon” is equivalent to an empty promise. PolkaDot has not yet launched their parachain auction, Kusuma has already achieved this goal by choosing its first winner allocation. In addition, Twitter’s sentiment acknowledges that the implementation of parachains across spaces can expand adoption at the institutional and corporate levels.

Nonetheless, although innovations may occur at moments when the market is inactive, they may happen unknowingly. Trader Fred is a cryptocurrency trader. He emphasizes altcoins such as PolkaDot. He requires Ethereum to show active activities as the transaction volume increases. In addition, he believes that “Historically, the third quarter is not a great quarter”, which may indicate why the price of DOT has been sideways in the past month.

With the record outflow of leading cryptocurrencies, the enthusiasm of institutions for cryptocurrencies has ceased. Coinshare research emphasized that the weekly outflow of 50 million U.S. dollars from Ethereum products is the largest since 2015, which has caused investor anxiety. Trader Fred emphasized that most altcoins have similar sentiments because investors still lack confidence.

Note to investors

PolkaDot is “the hottest blockchain at the moment”, price activity and horizontal transactions make all encrypted environments only interested in a few people. Institutional investors analyze their purchases based on the basic value of the project; however, market fluctuations and fear reduce investment opportunities. Therefore, the outflow of encrypted investment is the main indicator of the lack of trust in the market.

In addition, PolkaDot’s price activity does not indicate that investors are increasing their positions. DOT is still hovering near the support level, and insufficient trading volume hinders its ability to close above the resistance level. As emphasized by The Wolfonaire, the delay in issuing parachains puts DOT in a dangerous situation. If inactivity and lack of trust continue, DOT may fall to the level of $12.50.

on the other hand

• The delay of the PolkaDot parachain will only hinder prices in the short term while adding incremental value to future development.
• Investors are paying attention to Bitcoin’s price activity instead of focusing on the movement of altcoins.
• The outflow of cryptocurrency investment funds for more than 4 weeks indicates distrust of the current market.

PolkaDot is still optimistic about developers

Despite the delays in the deployment of parachains, the PolkaDot ecosystem is still evolving. Parachain as a multi-chain system provides users with more than just scalability advantages. Mark Cuban believes that “DeFi is like the early days of the Internet”, and due to the high cost of Ethereum, the new blockchain and integration are more suitable for the ecosystem.

PolkaDot provides “off-the-shelf packages” for projects that are ready to be launched. Therefore, the release is more important than the regular mainnet release, because it is a catalyst for attracting new developers to join the project. For this reason, the delay is well-founded and is in the best interests of PolkaDot and future developers.

PolkaDot’s “loan service provider” Amara Finance provided what Mark Cuban is debating, namely DeFi. With the launch of the new ecosystem and attracting Ethereum developers, DeFi can challenge financial products and make it easier to interact with ordinary users.

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