Polkadot Price Skyrockets 6% on On-Chain Treasury Investment
- The Polkadot (DOT) price has gained in value bolstered by the thriving ecosystem of stakers, crowdloans, and Parachains, and recently the Web3 Foundation announced plans to invest $1M in US T-bills via Centrifuge.
- Up 26 percent in the past four weeks to trade around $5.43 on Friday, DOT price is well poised to close the year trading above $7 based on recent momentum.
As Bitcoin price printed its new yearly high of slightly above $38.8k on Friday, Polkadot (DOT) led the top altcoins in gains in the past 24 hours to trade around $5.43. The utility-based altcoin has been preparing for a full send-off to its all-time high after a successful rebound from its crypto-winter lows. Moreover, the DOT price had been trapped in a correction mode in the past three weeks and the second bullish leg of the Ellion wave rally has just begun.
With more buyers having purchased above the support level of around $5, DOT price is aiming for the next liquidity level above $7, which is likely to happen in the next four weeks.
Web3 Foundation Pushes Polkadot to the US Market
The United States financial market is hailed for its success over the past decades and international web3 projects aim at obtaining operational licenses in the country, despite its complex regulatory landscape. On Thursday, Web3 Foundation, an institution focused on the growth and development of Polkadot and Kusama networks, announced that it would invest part of its treasury into real-world assets through Centrifuge.
To kickstart the program, the company announced that it would set aside $1 million, whereby the pilot investment will be made into Anemoy’s upcoming pool of US T-bills on Centrifuge.
“We’re excited to see the rapidly accelerating investor interest in Centrifuge matched with a growing availability of a diverse and institutional-grade offering of tokenized assets,” said Lucas Vogelsang, Co-Founder of Centrifuge. “With this collaboration between Centrifuge and Web3 Foundation, the stage is set for significant growth and innovation for real-world assets using Polkadot’s infrastructure and technology.”
According to Fabian Gompf, the Chief Executive Officer at Web3 Foundation, the investment into US T-bills will grow exponentially with the initiative of venturing into real-world asset use cases. Moreover, the US T-bills offer a way for web3 investors to access highly liquid assets with low-risk returns.
Web3 Foundation announces a $1M seed investment in tokenized treasury bills on @centrifuge.
We’re thrilled to lead by example as the first user of the real-world asset use-case supported and managed through the parachain. https://t.co/dIXOLkfJRL
— Web3 Foundation (@Web3foundation) November 29, 2023
The Polkadot network has continued to grow exponentially in the past year as depicted by its market outlook and on-chain performance. Already, more than 51 percent of the total circulating supply of DOT has been staked to secure the network of Parachains. Additionally, the Polkadot Parachains have been attracting diverse web3 networks including from the metaverse, IoT, and DAOs among others.
Most importantly, existing Parachain users like Astar network have continued to pledge their long-term relationship with the Polkadot network.
As a result, the $7.5 billion valued Polkadot network with an average daily trading volume of about $300 million, is well positioned to grow exponentially in the coming bull market. Nonetheless, the Polkadot network has been blamed for the high DOT annual inflation of about 7 percent, which is higher than some fiat currencies.
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