Keeping track of a cryptocurrency's performance involves understanding its current price, market data, and the technology behind it. This guide provides a detailed look at Polkadot (DOT), its market position, and its unique role in the blockchain ecosystem.
Live Polkadot (DOT) Market Data
As of the latest data, the price of Polkadot stands at $3.33**. Its market capitalization is valued at **$5.31 billion, supported by a circulating supply of 1.59 billion DOT tokens.
In the last 24 hours, the token has seen a slight increase of +0.26%. However, looking at the weekly performance, it is down by -1.84%.
Key Statistics and Basic Information
- 52-Week Price Range: The token has fluctuated between a low of $3.02** and a high of **$11.60 over the past year.
- Network Age: The Polkadot network has been operational for approximately 4 years and 10 months.
- Social Channels: The project maintains an active presence on social media platforms like Twitter and Reddit for community discussions and updates.
- Technical Resources: Developers and users can access the network's code on Github and its foundational principles in the White Paper.
Trading Polkadot on Exchanges
Polkadot (DOT) is a widely traded digital asset. It is available through 208 different trading pairs across 34 major cryptocurrency exchanges.
Leading platforms such as Huobi and Binance are notable for their liquidity, reporting 24-hour trading volumes of $14.88 million and $14.24 million, respectively. For those looking to diversify their portfolio, exploring various trading platforms is a common step. 👉 Discover leading cryptocurrency exchanges
Technical Analysis and Price Indicators
Technical indicators help traders gauge market sentiment and potential price movements. The daily chart for DOT shows a mixed signals.
The 14-day Relative Strength Index (RSI) is at 34.60, which is generally considered a neutral zone, indicating a balance between buying and selling pressure. Similarly, the MACD(12,26) is at -0.1662, also signaling a neutral momentum.
Key Daily Technical Indicators
Momentum Indicators:
- RSI(14): 34.60 (Neutral)
- STOCH(9,6): 16.86 (Buy)
- STOCHRSI(14): 4.08 (Sell)
- Williams %R: -92.45 (Buy)
- CCI(14): -121.06 (Sell)
Trend Indicators:
- ADX(14): 22.10 (Sell)
- MACD(12,26): -0.1662 (Neutral)
Moving Averages:
- SMA20: 3.97 (Sell)
- SMA50: 4.32
- SMA100: 4.19
- SMA200: 5.34
Understanding the Polkadot Network and DOT Token
Polkadot (DOT) is the native token of the Polkadot network, an open-source project founded by the Web3 Foundation. It is not merely a digital currency but is fundamentally designed to perform three critical functions within its ecosystem.
- Network Governance: DOT holders have complete control over the protocol. This governance right includes determining network fees, voting on proposed upgrades, and the addition or removal of parachains.
- Operational Consensus: DOT is used to facilitate the network's consensus mechanism. Token holders who stake their DOT help secure the network and validate transactions, for which they are rewarded.
- Parachain Bonding: New parachains—independent blockchains that run in parallel within the Polkadot ecosystem—are added by bonding DOT tokens. This process allocates a slot for a parachain for a lease period.
This multi-functional design makes DOT integral to the security, operation, and evolution of the entire Polkadot network, aiming to enable a fully decentralized web where different blockchains can transfer messages and value seamlessly.
Frequently Asked Questions
What is Polkadot (DOT) used for?
DOT serves three primary purposes: governing the Polkadot network, staking for operations and security, and bonding to create new parachains. This functionality makes it essential for the platform's ecosystem rather than just a simple currency.
How can I buy Polkadot tokens?
You can purchase DOT on numerous major cryptocurrency exchanges. It is typically available for trade against fiat currencies like USD or EUR, as well as other cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Always ensure you use a reputable platform.
What does staking DOT involve?
Staking involves locking up your DOT tokens to support the network's security and consensus mechanisms. In return for this service, stakers receive rewards. It is a way to earn passive income while contributing to the network's health.
What are parachains?
Parachains are application-specific blockchains that run in parallel within the Polkadot network. They connect to the central Relay Chain, which provides shared security and enables interoperability, allowing them to communicate and transact with one another.
Is Polkadot a good investment?
Like any cryptocurrency investment, DOT carries risk. Its value is influenced by market sentiment, overall crypto market trends, adoption rates of its technology, and broader economic factors. Thorough research and understanding of the project's fundamentals are crucial.
What is the total supply of DOT?
The circulating supply is dynamic due to the network's inflationary model and staking rewards. The current circulating supply is approximately 1.59 billion tokens, but this number can change over time based on network activity and governance decisions.