DAO’s Big Move: Will Polkadot Skyrocket Past Resistance?

Polkadot’s DOT Token皡 Supply Cap Could Fuel New Growth

Polkadot’s price is hovering near a key resistance point after the network’s DAO decided to limit the DOT supply to 2.1 billion.

This significant change comes after Referendum 1710 was passed with an overwhelming 81% vote in favor. Until now, around 120 million new DOT tokens were created yearly, with no supply limit. Now, there’s a predictable cap set to reach under 2 billion by 2040. This move toward scarcity could strengthen DOT’s value.

Currently, DOT trades at $4.37, up 11% in the last month despite flirting with a resistance level at $4.50. Though, derivatives volumes have slowed, indicating fewer speculative trades.

• Trading volume dropped 51.5% in 24 hours to $235.3 million.
• Open interest declined slightly to $605 million.

Polkadot notes the new supply cap aligns with preparation for its upcoming 2.0 upgrade this month. The update seeks to lower progress costs and boost performance with features such as Agile Coretime and Elastic Scaling.

Gavin Wood, the new CEO of Parity Technologies, supports these changes aiming for long-term growth.

For investors, the key levels to watch remain around $4.00 and $4.50. If DOT breaks through $4.50, it could aim for $4.80, then $5.00. But if prices fall,$3.80 acts as a solid bottom.