Why is the Polkadot price rising more than 20%?

The Polkadot price has risen by more than 20% in the last 24 hours. This is partly due to the announcement of a new blockchain project.

Polkadot announces ‘parachains’

Earlier this fall, Cardano and Solana caught the eye, but now it’s Polkadot’s DOT coin that is taking a big hit.

The DOT price has increased by more than 20% in the last 24 hours, making 1 token now worth more than $41. Today’s increase is part of a gain of more than 30% in the past week.

The launch of the parachains

It is probably no coincidence that, exactly five years after the development of the project, the Polkadot team announced the launch of the ‘parachains’ yesterday. Polkadot’s development group then voted to begin “auctions” for parachain slots starting Nov. 11.

Parachains are their own blockchains that run alongside the main network. They are used for security and to validate transactions. So Polkadot is all about blockchain interoperability, with a view to increasing the number of transactions a network can process.