On the day $DOT ’s stablecoin dotUSD launched, the token price fell about 4.69%; a day later, it was up 15.24% on Binance Spot 🧐
Data (Binance Spot, Oct 10, 00:35): DOT was at 1.202, with 24-hour trading volume of 19.5 million U. Over the same period, $ATOM rose 17.44% to 2.007. The two established Layer 1 chains surged into the top five gainers together, which looks more like sector rotation than a move driven by a single news story.
The news: dotUSD launched on mainnet on October 8. DOT holders govern it through OpenGov, and the proposal passed with 98.4% support. But for now, it’s minted at a 1:1 ratio using USDT, so it still relies on USDT; minting against locked DOT collateral will have to wait until the second phase. In other words, real demand for DOT is still only an expectation at this point, and CryptoTicker also noted that the data can’t prove the rally was caused by the launch.
The scenarios:
1️⃣ If DOT’s daily candle closes and holds above the 200-day EMA, around 1.186, this move could be seen as a trend recovery.
2️⃣ If it falls back below 1.11 (the level on launch day), this rebound will have essentially failed.
With collateral demand not yet live on one hand, and established chains catching up together on the other, what do you think is driving DOT this time?
Sources: FXStreet, CryptoTicker, CryptoBreaking
$DOT $ATOM #Polkadot #Stablecoin
#BinanceSquare
⚠️ The above is for informational purposes and reflects personal opinion. It is not investment advice. DYOR.
Data (Binance Spot, Oct 10, 00:35): DOT was at 1.202, with 24-hour trading volume of 19.5 million U. Over the same period, $ATOM rose 17.44% to 2.007. The two established Layer 1 chains surged into the top five gainers together, which looks more like sector rotation than a move driven by a single news story.
The news: dotUSD launched on mainnet on October 8. DOT holders govern it through OpenGov, and the proposal passed with 98.4% support. But for now, it’s minted at a 1:1 ratio using USDT, so it still relies on USDT; minting against locked DOT collateral will have to wait until the second phase. In other words, real demand for DOT is still only an expectation at this point, and CryptoTicker also noted that the data can’t prove the rally was caused by the launch.
The scenarios:
1️⃣ If DOT’s daily candle closes and holds above the 200-day EMA, around 1.186, this move could be seen as a trend recovery.
2️⃣ If it falls back below 1.11 (the level on launch day), this rebound will have essentially failed.
With collateral demand not yet live on one hand, and established chains catching up together on the other, what do you think is driving DOT this time?
Sources: FXStreet, CryptoTicker, CryptoBreaking
$DOT $ATOM #Polkadot #Stablecoin
#BinanceSquare
⚠️ The above is for informational purposes and reflects personal opinion. It is not investment advice. DYOR.