DOT Price Jumps 8% As Polkadot Reveals Major Update, Rally To Persist?

Polkadot (DOT) price has surged 8% following the release of “Agile Coretime,” a key component of the Polkadot 2.0 upgrade. This major update is anticipated to enhance the network’s capacity, performance, and usability, thereby garnering the attention of developers and investors once again.

Agile Coretime Launch Boosts Polkadot 2.0

Polkadot has introduced Agile Coretime, a new approach to resource management that dynamically allocates computational resources based on network usage. As opposed to the previous system that used the auction system to grant blockspace in two-year leases to projects, Agile Coretime has a fluid model for blockspace procurement.

This change aims at cutting costs and increasing convenience for developers to facilitate better and more sustainable blockchain operations.

It's LIVE ⚡️ Agile Coretime—one of the foundations of Polkadot 2.0—is here!

That means:

🔹 Increased Flexibility & Scalability
🔹 Lower Barrier to Entry for Builders
🔹 Predictable Costs

1/ pic.twitter.com/iLQdX4WuS7

— Polkadot (@Polkadot) September 19, 2024

The update is part of the larger Polkadot 2. 0 roadmap, which is designed to increase the network’s functionality with the help of new features like Asynchronous Backing and the future Elastic Scaling. This way, Agile Coretime is able to prevent overcharging of unused resources in the times of low activity as well as congestion in the times of high traffic.

Developers Gain Flexibility and Cost Efficiency

The introduction of the upgrade is a significant shift for developers working on Polkadot. This new model reduces the entry threshold since projects can buy block space as they need without having to pledge large amounts of DOT. As a result, new projects and independent developers can now get on board with Polkadot and leverage the platform’s strong backbone to build their ideas.

Derek Yoo, CEO of Moonsong Labs, emphasized that Agile Coretime addresses a key challenge faced by developers: this is the art of finding a middle ground for the required scalable resources but at the same time not having to incur the costs of buying a whole block space. 

For newer projects, on-demand coretime allows for a gradual increase in resources, while for more established projects, guaranteed resources can be obtained in bulk, thus providing fixed costs and performance.

Market Indicators Point to Potential Bullish Trend for DOT

The launch of Agile Coretime has had a positive effect on Polkadot’s market performance, with DOT showing a strong price rally amid growing bullish sentiment. Recent technical analysis suggests that DOT is nearing a potential bottom, with indicators such as the Moving Average Convergence Divergence (MACD) showing higher lows. The moving averages are flattening, which suggests that DOT may be gearing up for a rally as the market stabilizes. At press time, DOT price was trading at $4.34 a 8.15% surge from the intra-day low. 

Furthermore, the Chaikin Money Flow indicator shows that there is a divergence between the increasing buying pressure and the downward price action. This pattern indicates accumulation, which means that buyers might start pushing the price of DOT up soon. The long position, which is now at 73%, also shows that investors are becoming more optimistic, with both retail and institutional investors probably buying more in preparation for higher prices.

Now that Agile Coretime has been launched, the Polkadot team is gearing up to release the next significant upgrade known as Elastic Scaling. This feature will allow chains to leverage multiple cores within a single block, thus improving the network topology and minimizing congestion at peak times.