Polkadot crypto price action has been boring in the past few years. It has remained inside a narrow range between $3.5 and $11.90 since 2022 and is now hovering at its lower side. Still, there are reasons to believe that DOT price will rebound soon.
Polkadot ETF Approval Hopes
The most notable low-hanging fruit is that there are odds that the Securities and Exchange Commission (SEC) will approve the two DOT ETF filed by 21Shares and Grayscale.
Analysts expect the agency to approve most altcoin ETFs by the end of the year, a move that is likely to lead to increased demand from American investors. This has already happened among other top cryptocurrencies like Bitcoin and Ethereum that have had nearly $70 billion in inflows.
Join-Accumulate Machine (JAM) upgrade
The other notable catalyst for the DOT price is the upcoming JAM upgrade, which was proposed by Gavin Wood in 2024. This is notable since Wood just returned as the CEO, meaning that it will be his priority.
JAM is an upcoming protocol upgrade that will replace the relay chain with a more modular, scalable, and developer-oriented system.
A key benefit of JAM is that it will shift away from the current Relay Chain model, which coordinates parachains and leverages the Polkadot Virtual Machine (PVM).
JAM is the next big thing in Polkadot after the conclusion of the Polkadot 2.0 upgrade. Polkadot 2.0 made it a faster chain and removed the need for parachain auctions.
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Growing Adoption
The other key reason why the Polkadot price will surge is the growing adoption of its network. One application that has become highly successful is Hydration, which has achieved over $220 million in total value locked (TVL) in the past few months,
Another one is FIFA Rivals, a racing game that has climbed up the ladder in top app stores. Additionally, the market capitalization of all stablecoins in Polkadot has jumped to $90 million.
DOT Crypto Supply Cap
One reason why the Polkadot price has struggled is that it is one of the most inflationary tokens in the crypto industry. It currently emits millions of tokens a year, which go to its stakers. As one would expect, many of these stakers sell their tokens, leading to more pressure.
Now, Wood has proposed changing how all this works. In the first place, he has proposed reducing staking, a move that will cut its inflation. He also wants to change how validation works by decentralizing it more. All these actions will be bullish for DOT price.
Polkadot Crypto Price Technical Analysis
The weekly chart shows that the DOT crypto price has remained in a consolidation phase for three years. That could be a sign that it is in the accumulation phase of the Wyckoff Theory. It has also formed a triple-bottom pattern, pointing to an eventual short-squeeze, potentially to $11.90.
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