Polkadot’s major upgrade is coming

NAIROBI (Coinchapter.com) - Polkadot has seen significant growth in early 2024 as it prepares for its much-anticipated major upgrade, the Join-Accumulate Machine (JAM). Despite being the second-largest blockchain in terms of developer activity and ecosystem growth, Polkadot's market cap does not yet reflect its true potential. This gap may narrow with the upcoming JAM implementation to address Ethereum's scalability and security issues.

Gavin Wood, the founder of Polkadot, proposed a groundbreaking proposal called Join-Accumulate Machine (JAM). JAM is a scalable and trustless virtual machine designed to improve the scalability and performance of the network while maintaining its resilience. It combines the characteristics of Ethereum and Polkadot by combining a global singleton environment and secure computing between nodes.

The first quarter of 2024 marked strong growth for Polkadot. The network’s active addresses increased by 40%, and cross-chain message (XCM) transaction volume nearly doubled, highlighting its growing interoperability and adoption.

According to Messari’s Q1 2024 Polkadot report, Polkadot’s market cap increased by 16% year-over-year to $12.7 billion, maintaining strong growth despite volatile markets. However, revenues saw a significant decline, falling by 91% year-over-year to $241,000, compared to the previous quarter. DOT revenues also saw a significant decline, highlighting the network’s volatile economic dynamics despite its strong market influence.

Blockchain’s financial activities highlighted strategic financial operations, including Proposal 457, which aims to achieve financial stability and predictability through the inclusion of stablecoins USDT and USDC to achieve financial diversification.

Polkadot Upgrades

Polkadot's major JAM upgrade introduces three major innovations: Agile Coretime, Elastic Scaling, and Async Backing. Agile Coretime enables dynamic and adaptive block space allocation, while Elastic Scaling enables more efficient shard resource allocation. Finally, Async Backing promises more flexible application submission of parablocks.

Overall, JAM’s innovations have the potential to significantly enhance Polkadot’s execution capabilities and efficiency by streamlining the use of core time. This could result in greater throughput than networks like Ethereum.

As of May 7, 2024, the Polkadot (DOT) price is $7.20269, up 1% in the past 24 hours. The market cap of the token is $10.36 billion, with a 24-hour trading volume of $177.42 million. The circulating supply of 144 million DOTs indicates a modest uptick in investor sentiment and market activity.

Following the announcement of the JAM strategy and Polkadot 2.0, DOT experienced significant price fluctuations. After falling to a low of $6.06, DOT managed to recover and broke through the $6.40 support level to stabilize at $6.42. This recovery led to a growth of 7.48% to $6.90, although it had difficulty breaking through the $7.00 resistance level.

Nevertheless, DOT rose above the 20-day EMA and 200-day EMA to $7.29 but later declined below the 200-day EMA to $7.13. This volatility suggests a potential for volatility at the critical resistance of $7.00 and support of $6.40.

Looking ahead, if DOT holds above $7.00, it could challenge the critical $8.00 resistance level. A breakout could lead to future gains towards $10 depending on market conditions and the development of the Polkadot ecosystem.