Why is the price of Polkadot rising?

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On Thursday, June 3, the native token of the Polkadot blockchain (DOT) has risen in price by more than 15%. Since the beginning of the month, the value of the coin has grown by 20% to $ 27.7. The market capitalization of the ecosystem has reached $ 27.7 billion. DOT is now ranked eighth in the cryptocurrency rating according to Coinmarketcap.

Source: nomics.com

DOT’s growth was preceded by a series of investment announcements. For example, in early June, the Asian venture capital firm Master Ventures announced the creation of the Master Ventures Polkadot VC Fund. The fund’s capital is $ 30 million, and its main task is to sponsor the development of parachains based on Polkadot. The fund is expected to accelerate the emergence of non-fungible tokens (NFT) as well as decentralized finance (DeFi) projects on the Polkadot network.

It also became known about the launch of an Exchange Traded Product (ETP) for the Polkadot ecosystem from Valour Structured Products. The ETP is reportedly available on the Swedish stock exchange Nordic Growth Market under number CH111478796. As the head of Valor said Diana BiggsThe launch of Polkadot ETP was a direct response to “increased demand from both retail and institutional investors.”

In addition to foundations, the Polkadot ecosystem is expanding through blockchain partnerships. For example, the API3 project in collaboration with the Ethereum startup Moonbeam announced the launch of an off-chain API for Polkadot. As part of the collaboration, blockchain developers will be able to extract information from the Ethereum ecosystem for use in Polkadot.

Activity on the Polkadot network has coincided with a recovery in the cryptocurrency market. Since the beginning of the year, the DOT token has grown by 200%. The ecosystem may be of particular interest due to the high fees on the Ethereum network.

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