The growing excitement of new updates to Polkadot parallel chains and increased interoperability has pushed the price of the digital currency to a new high, boosting the price of Polkadot by 42% since last week.
to the the report Coin Telegraph In the first hours of February 20, the trading volume of Polkadot saw a significant increase. This growth eventually pushed the price of this digital currency to a new price record of $ 42.28.
TradingView data show that the DOT digital currency fell to a defining floor of $ 29.36 on February 19. But after that, it experienced a 44% rise, which brought its price to the peak of 2021.
While Polkadot is upgrading its Parachain Chains, excitement about the digital currency ecosystem continues. This update allows the Polkadot network to connect to other existing networks such as Bitcoin and Ethereum.
Parallel chains in Polkadot also allow developers and projects to operate on the Polkadot network without creating a new blockchain. These chains will be awarded to projects through auctions, and developers can submit bids for their acquisition.
The mechanism through which data is transferred between different blockchains is called the Intermediate Messaging (XCMP-lite) system, and is currently in the Rococo phase of the project roadmap.
When this code is fully reviewed, it is time for members of the Polkadot community to vote to activate the parachute function through a simultaneous upgrade. Then it’s time to vote to start the Slot Auction to add useful parachutes.
Increased talk about Polkadot on social media before the price rose
VORTECS data on the Cointelegraph Markets Pro on February 16 (February 28) identified a bullish outlook for Polkadot before the recent price increase.
The Coin Telegraph Vortex Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price fluctuations, and Twitter activity.
As shown in the chart above, Vortex scores for Polkadot peaked at 81 on February 16, more than 48 hours before the next price increase. The data also shows a 102 percent increase in the volume of tweets related to Polkadot, which coincided with the growth of its price.
The unveiling of parallel chains helps Polkadot get closer to its goal of becoming the best interoperability interoperability and data transfer platform. It also contributes to its long-term goal of creating a completely decentralized, user-controlled web.