Why did the price of DOT go up?

Polkadot (DOT) increased by 6.45% in the last 24 hours, outperforming the overall cryptocurrency market, which rose by 4.94%. This growth is driven by a strong technical breakout, new developments in its ecosystem, and eased concerns about token unlocks.

1. Technical Momentum: DOT broke above a key resistance level at $3.25, signaling positive market sentiment.
2. Ecosystem Growth: The launch of Nova Wallet’s esports gaming on Polkadot helped boost user interest and adoption.
3. Token Unlock Clarity: Gradual token releases reduced fears of sudden sell-offs.

Deep Dive

1. Technical Breakthrough (Positive Signal)

Overview: DOT surpassed the $3.25 resistance level and stayed above the important $3.19 mark. Technical indicators like the MACD turned positive, and the RSI suggests there’s still room for upward movement without the asset being overbought.

What this means: When a cryptocurrency breaks key technical levels, it often triggers automated buying and attracts traders looking for short-term gains. This move fits with a weekly gain of 18.17%, showing signs of a bullish trend after a period of weaker performance.

What to watch: If DOT closes above $3.52, it could aim for $3.84. However, if it falls below $3.19, some investors might take profits.

2. Nova Wallet’s Esports Expansion (Positive Impact)

Overview: Nova Wallet teamed up with BLAST to launch Nova Shots, an esports prediction game powered by Polkadot, in Hong Kong (Cointelegraph). The event features a $25,000 prize pool and rewards players with DOT tokens, adding real-world use to the cryptocurrency.

What this means: Combining gaming and decentralized finance (DeFi) shows Polkadot’s flexibility and helps attract both users and developers. Similar events in the past have led to millions of on-chain transactions, indicating potential spikes in network activity.

3. Token Unlock Dynamics (Neutral Effect)

Overview: This week, about $476 million worth of DOT tokens are being gradually released (linear unlocks). Unlike sudden large token releases seen with other cryptocurrencies like Aptos and Avalanche, Polkadot’s gradual approach is less likely to cause immediate selling pressure.

What this means: The steady release of tokens helps avoid sudden supply shocks. While daily unlocks exceed $5 million, this is manageable compared to DOT’s $382 million daily trading volume. However, if demand doesn’t keep up, ongoing token releases could limit price gains.

Conclusion

DOT’s recent price increase is driven by a combination of strong technical signals, strategic growth in its ecosystem, and a controlled token release schedule. While the overall crypto market’s recovery helped, Polkadot-specific factors like the Nova Shots launch played a key role in boosting the price.

Key point to watch: Will DOT maintain buying momentum above $3.25 despite ongoing token unlocks, or will profit-taking cause a pullback? Keep an eye on trading volume, which has increased by 123% over the past week, for confirmation (Coinpedia).

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What could affect the price of DOT?

Polkadot’s price is balancing between upcoming technology upgrades and market challenges.

1. JAM Upgrade & Elastic Scaling – New tech improvements expected in late 2025 (positive)
2. DOT Supply Cap – A hard limit of 2.1 billion DOT approved, which lowers inflation (mixed)
3. ETF Delays – SEC postponed decision on 21Shares DOT ETF until November 2025 (negative)

In-Depth Look

1. Protocol Upgrades: JAM & Elastic Scaling (Positive Outlook)

What’s Happening:
Polkadot is rolling out the JAM upgrade (Join-Accumulate Machine), which will replace its current Relay Chain with a decentralized supercomputer system. This change will allow more advanced decentralized applications (dApps) to run smoothly. Additionally, Elastic Scaling, active since August 2025, lets parachains (independent blockchains connected to Polkadot) rent extra processing power as needed, increasing demand for DOT tokens.

Why It Matters:

• Better Performance: Tests on Kusama (Polkadot’s experimental network) showed it can handle up to 143,000 transactions per second at 23% capacity (Polkadot Wiki).
• Increased DOT Use: Parachains pay for extra resources using DOT tokens, which could boost the token’s value. Experts estimate a 20–30% price increase if adoption grows after the upgrade.

2. Tokenomics Update: 2.1 Billion DOT Supply Cap (Mixed Impact)

What’s Happening:
A recent vote (Referendum 1710) set a maximum supply of 2.1 billion DOT tokens, down from the previously expected 3.4 billion. The rate of new DOT tokens entering the market will also slow, with inflation dropping from 7.4% annually to 3.3% by 2026.

Why It Matters:

• Less Selling Pressure: Since most inflation rewards go to validators (those who maintain the network), fewer new tokens will flood the market.
• Short-Term Risk: Right after the vote, DOT’s price dropped about 6% due to concerns that validators might leave (The Block). The long-term success depends on keeping validators motivated while limiting supply.

3. Regulatory Challenges: ETF Delays (Negative Outlook)

What’s Happening:
The U.S. Securities and Exchange Commission (SEC) delayed its decision on the 21Shares Polkadot ETF until November 8, 2025. This follows a cautious approach to approving ETFs for alternative cryptocurrencies. Meanwhile, Grayscale’s DOT ETF application is still pending.

Why It Matters:

• Institutional Investment: Approval of an ETF could bring in over $100 million from institutional investors, similar to what happened with Bitcoin ETFs.
• Market Sentiment: Ongoing delays hurt confidence and keep retail investors hesitant, reinforcing doubts about DOT’s growth potential.

Conclusion

Polkadot’s price is caught between promising technology upgrades and regulatory plus market uncertainties. The JAM upgrade and Elastic Scaling could push prices up to $4.50–$5.00 by the end of 2025. However, delays in ETF approvals and questions about staking rewards add unpredictability. Will the new supply cap help DOT’s price better reflect its developer activity, or will regulatory delays keep it stuck in a range? Keep an eye on the November ETF decision and demand for parachain resources.

What are people saying about DOT?

The Polkadot (DOT) community is divided between cautious hope and growing concern. Here’s what’s trending right now:

1. Breakout bets – Traders are watching the $4.60 price level closely, hoping for a strong upward move.
2. Upgrade excitement – Upcoming updates like JAM and Polkadot 2.0 are fueling positive long-term expectations.
3. Bearish signals – Falling usage and declining prices are causing some to worry.

Deep Dive

1. @CryptoCatalystX: $4.60 Resistance – A Key Turning Point for Bulls

“If DOT breaks $4.60, we could see $8–$12. If rejected, $3.30–$2.60 is next.”
– @CryptoCatalystX (12K followers · 45K impressions · July 27, 2025)
View original post
What this means: If Polkadot’s price moves above $4.60, it could signal a strong upward trend. But if it fails, the price might drop back to support levels between $3.30 and $2.60.

2. @ThomasReidBtc: Building Momentum Toward $4.25 Breakout

“DOT eyes $4.10–$4.25 after consolidating near $3.80. Fundamentals support upside.”
– @ThomasReidBtc (3.3K followers · 18K impressions · August 31, 2025)
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What this means: Polkadot’s price has been steady around $3.80 and could break above $4.25 soon. This is supported by improvements in the network, like Elastic Scaling, which could boost growth.

3. AMBCrypto: Warning Signs from Ecosystem Decline

“DOT is down 93% from ATH, with active users and devs plummeting. RSI nears oversold.”
– AMBCrypto (Published June 29, 2025)
What this means: Polkadot’s network activity and developer involvement have dropped significantly, and technical indicators suggest the price could fall further unless adoption picks up.

Conclusion

Opinions on Polkadot are mixed. On one hand, technical signals point to potential price gains between $4.60 and $12. On the other, the ecosystem shows signs of slowing down, with developer activity and user engagement declining. Keep an eye on the upcoming JAM upgrade expected in late 2025 and possible ETF approvals, as these events could change the outlook. For now, investing in DOT carries significant risk but also the possibility of reward if interoperability solutions gain traction.

What is the latest news about DOT?

Polkadot is gaining momentum with strong ecosystem growth and positive technical signals, sparking bullish expectations for prices above $10. Here’s the latest update:

1. Nova Shots Launches in Hong Kong (Nov 10, 2025) – A Polkadot-powered esports prediction game expands to Asia, offering a $25,000 prize pool.
2. DOT Price Surges Past $3.25 (Nov 8, 2025) – A 14% jump fueled by technical breakthroughs and increased developer activity.
3. Q2 Treasury Spends $27.6M (Nov 7, 2025) – Most funds went to DeFi incentives and stablecoin reserves to support ecosystem stability.

In-Depth Look

1. Nova Shots Launches in Hong Kong (Nov 10, 2025)

What’s happening: Nova Wallet and BLAST are introducing Nova Shots, a free esports prediction game running on Polkadot’s blockchain, at the BLAST Rivals Fall 2025 event in Hong Kong (Nov 12–16). Players get 1,000 free tokens to predict outcomes in the popular game Counter-Strike, competing for $25,000 in stablecoin prizes. Previous events in Austin and London saw 2.8 million on-chain transactions and 21,000 new wallets created.
Why it matters: This move highlights Polkadot’s growing real-world use in gaming and helps bring new users into the crypto space by offering easy, no-cost participation and secure, non-custodial payouts. (Cointelegraph)

2. DOT Price Surges Past $3.25 (Nov 8, 2025)

What’s happening: DOT’s price jumped 14% in one day, breaking through a key resistance level at $2.85 to reach $3.25. This price move came with a 123% increase in trading volume, hitting $918 million, alongside a hackathon event that attracted over 2,000 developers. Technical indicators like MACD and RSI suggest further upward momentum, with $3.61 identified as the next resistance level.
Why it matters: Strong technical signals and active developer engagement are driving optimism. However, if the price falls below $3.19, some traders might take profits. Investors are also watching for broader market trends, especially as Bitcoin’s dominance decreases, which often benefits altcoins like DOT. (Coinpedia)

3. Q2 Treasury Spends $27.6M (Nov 7, 2025)

What’s happening: Polkadot’s treasury report for the second quarter shows $27.6 million spent, with $106 million still available. The largest expenses were $9.1 million on DeFi incentives and $5.9 million on technical development. Additionally, $9.7 million was allocated to stablecoins to help stabilize the budget.
Why it matters: The focus on DeFi and liquidity management aims to reduce price volatility for DOT. However, some critics question the return on investment for marketing ($4.5 million) and talent acquisition ($3.8 million). (Bitget)

Conclusion

Polkadot is positioning itself for growth through gaming partnerships, strong technical fundamentals, and careful treasury management. With the upcoming Sub0 conference (Nov 14–16) set to highlight new upgrades and developer tools, the key questions are whether DOT can keep up its momentum amid broader market challenges. Watch for the $3.61 resistance level and the impact of the Hong Kong esports event.

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What is expected in the development of DOT?

Polkadot’s roadmap is focused on improving scalability, growing its ecosystem, and meeting key regulatory milestones.

1. JAM Protocol Launch (Late 2025) – An upgrade to create a decentralized supercomputer.
2. DOT ETF Decision (November 2025) – The SEC’s ruling on spot ETF applications for DOT.
3. Polkadot Hub Expansion (Q1 2026) – A unified platform to simplify the Polkadot ecosystem.

Deep Dive

1. JAM Protocol Launch (Late 2025)

Overview: The Join-Accumulate Machine (JAM) will replace Polkadot’s current Relay Chain with a new computing layer based on RISC-V technology. This upgrade will allow transactions without fees ("gasless") and support multiple tasks running at the same time (multi-core processing). Supported by 38 development teams, JAM aims to handle over 1 million transactions per second (TPS).
What this means: This is positive news for DOT holders. The improved scalability could attract large-scale decentralized applications (dApps) and reduce Polkadot’s dependence on Ethereum. However, if developer tools are not ready on time, adoption might be slower than expected.

2. DOT ETF Decision (November 2025)

Overview: The U.S. Securities and Exchange Commission (SEC) is reviewing applications from Grayscale and 21Shares to launch spot ETFs (Exchange-Traded Funds) for DOT. If approved, these ETFs would allow institutional investors to buy DOT through regulated investment products.
What this means: The decision is likely neutral to positive. ETFs could increase liquidity and make it easier for big investors to participate. However, previous crypto ETF approvals, like those for Bitcoin, have caused short-term price swings. Regulatory concerns remain a potential obstacle.

3. Polkadot Hub Expansion (Q1 2026)

Overview: Polkadot Hub will bring together staking, governance, and cross-chain asset management into one platform. Features like DOT-as-Payment (allowing unified transactions) and Universal Address (a single wallet for multiple assets) are designed to make the user experience simpler.
What this means: This is a bullish development. A smoother and more user-friendly interface could encourage more everyday users to join the network. The success of this expansion depends on partnerships with major exchanges such as Binance for easy integration.

Conclusion

Polkadot’s roadmap strikes a balance between technical innovation (with JAM), improved accessibility (with Polkadot Hub), and regulatory progress (with the ETF decision). These upgrades position Polkadot as a strong player in Web3 infrastructure. However, it still faces competition from Ethereum’s scaling solutions and Solana’s fast network. The key question remains: Will JAM’s technical improvements lead to increased developer interest? Keep an eye on on-chain activity and staking levels after the upgrade.

What updates are there in the DOT code base?

Polkadot’s latest updates focus on improving scalability, making developer tools easier to use, and enabling better communication between different blockchains.

1. Elastic Scaling (October 2025) – The final Polkadot 2.0 upgrade that significantly boosts the performance of rollups (a way to process many transactions efficiently).
2. JAM Protocol (Q3 2025) – A new modular blockchain system with a gasless design, acting like a supercomputer for blockchains.
3. DevContainer (July 2025) – A tool that lets developers set up their work environment with just one command, simplifying the onboarding process.

Deep Dive

1. Elastic Scaling (October 2025)

Overview: As part of the Polkadot 2.0 upgrade, Elastic Scaling lets parachains (independent blockchains connected to Polkadot) rent blockspace dynamically. This can increase transaction processing speed by up to 3 times for rollups. When combined with other improvements like Async Backing (which boosts speed by 10 times) and Agile Coretime (which allows blockspace leasing for up to 28 days), it greatly improves how efficiently resources are used.

What this means: This is good news for Polkadot because decentralized apps (dApps) can grow without slowing down the network. This is especially important for fast-paced applications like decentralized finance (DeFi) and gaming. Developers only pay for the resources they use, which helps lower costs.
(Source)

2. JAM Upgrade (Q3 2025)

Overview: The Join-Accumulate Machine (JAM) will replace Polkadot’s current Relay Chain with a new modular system based on RISC-V technology. It supports running many processes in parallel and includes built-in rollups. Over 38 teams are already testing it on the testnet.

What this means: This upgrade has a neutral-to-positive outlook. JAM’s gasless design and ability to handle millions of transactions per second could attract large businesses. However, moving to this new system might be complicated, which could slow adoption at first. Its success depends on how well the community embraces it.
(Source)

3. DevContainer (July 2025)

Overview: DevContainer is a tool that automates the setup of a developer’s environment with a single command, hiding the complex infrastructure details. It has been tested at events like Protocol BERG and Web3Summit, where it cut onboarding time by about 70%.

What this means: This is a positive development for Polkadot because it makes it easier for developers coming from traditional web development (Web2) to start building on Polkadot. This could speed up the growth of decentralized apps and help Polkadot compete with Ethereum for developer attention.
(Source)

Conclusion

Polkadot is focusing on enterprise-level scalability and making it easier for developers to build on its platform. With Elastic Scaling and JAM, it aims to become a leading Layer 0 blockchain (the base layer that connects other blockchains). However, how quickly these upgrades are adopted will determine if Polkadot can move from being a promising project to a high-performing ecosystem.

Will Polkadot’s technical improvements lead to real growth by 2026? Only time will tell.