In the early hours of February 20, the trading volume of Polkadot (DOT) began to increase significantly, which helped push the Multichain protocol to a new all-time high of $ 42.28.
Data from Cointelegraph Markets and TradingView show that DOT hit a swing low at $ 29.36 on February 19, before breaking out of 44%, pushing the price to a new high by 2021.
DOT / USDT 4 hour chart. Source: TradingView
Tension continues to grow in the Polkadot ecosystem ahead of the upcoming Parachain Auctions, which will allow the Polkadot Network to connect to other established networks like Bitcoin and Ethereum.
The mechanism by which data is transferred between different blockchains is known as “Cross-Chain Message Passing Lite” and is currently being finalized during the Rococo phase of the project’s roadmap.
Once the code has been fully reviewed, it is time for Polkadot governance to vote on enabling Parachain functionality via a runtime upgrade, followed by a vote on starting slot auctions to add useful parachains.
Social media chatter increased before the spike
VORTECS ™ data from Cointelegraph Markets Pro identified an optimistic outlook for DOT on February 16 ahead of the recent price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
Cointelegraph Markets Pro – VORTECS ™ Score (green) vs. DOT price
As can be seen from the graph above, VORTECS ™ for DOT peaked at 81 on February 16, more than 48 hours before the price surge that followed. The data also shows a 102% increase in DOT-related tweet volume, which coincides with the price increase.
The introduction of parachutes will help bring Polkadot closer to its goal of becoming the focal point for interoperability and cross-chain data transfer, and support the longer-term goal of creating a fully decentralized and private web that is controlled by its users.