Two to three days back here, some of Polkadot's ecosystem tokens like: $PHA, $LIT,...pump are very strong. Is this a signal for the web3 trend that has begun of the oldest brother Polkadot, or is it just temporary pumps and dumps? Let's find out with Holdstation through this article!
Polkadot Ecological Overview
Polkadot (DOT) is a multi-Chain, heterogeneous, and scalable blockchain network technology. Polkadot allows blockchains to connect with each other to share data and form a decentralized network.
To put it simply, Polkadot is a blockchain of many blockchains. This project will help users to build their own blockchain on Polkadot system easily.
In 2021 Polkadot has emerged as a hurricane, Polkadot's parachain auction event has attracted millions of users around the world. The prices of most coins on Polkadot's parachain are poles. The project has raised hundreds of millions of dollars through this hugely popular event.
In general, the Polkadot ecosystem has all the necessary pieces of a rich ecosystem. In addition, the most important feature of the Polkadot ecosystem is the pioneering flag for the web3 trend. If the tokens in the Polkadot ecosystem are being pumped while BTC does not have too many positive changes, will the signs for the web3 trend be "bloom"?
Polkadot Ecosystem Tokens Fly Like "Kite In The Wind"
The most typical and prominent one can be seen that Phala Network (PHA) is being pumped very strongly when in just the past 1 week this token has increased by more than x2 in value. Some other bright spots like $LIT also had a time of pumping up to 40% in just 1 day. Or $NSURE also pumped more than 165% in the past 1 week.
So is this a harbinger of the coming web3 trend? According to the writer personally, it is extremely difficult to say that there is a new trend leading the market at the moment. Firstly, the general macro situation does not have too many bright spots when the FED has not shown any signs of stopping raising interest rates to control inflation to 2%. Second, the tokens in Polkadot's ecosystem increased, but the price of $DOT did not have too many positive changes, so it is highly likely that these are just fake pumps and dumps of big hands. Finally, the price of $BTC is still showing signs of waiting for the cash flow when less than a month from now, Europe will officially enter winter. The war situation between Russia and Ukraine has not shown any signs of cooling down, then Europe will be in a situation of lack of gas to heat. The economic and social situation at that time was really hard to imagine.
In general, in the medium term, the general market will not have many positive changes to have new money flow into the market, instead of pouring money into crypto, people tend to accumulate dollars when the price of the dollar is available. continuous increase. However, in the short term, within the next half a month to a month, the individual writing the article still thinks that the market will have a gentle recovery before the 2022 Worldcup. Trend web3 in the long term will sooner or later explode, the price of $DOT At the moment is also at a not bad valuation, the number of DOTs locked after the Parachain auctions in 2021 is still locked and will not be unlocked until mid-2023. So investors can also consider pooling $DOT at the current $6 price zone.
