Risk on in DOT

24 มิ.ย. 2022

DOT has often been viewed as an alt layer 1 solution. Some call it a layer 0, as it is seeking to link unique blockchains into a single collective, cohesive network.
For comparisons sake, if viewed as a layer 1, then DOT's market cap as a percentage of ETH has dropped to 4%. So keep risk mgmt monitored closely.

• DOT benefits from deflationary pressures as more tokens are locked up or bonded with every parachain auction.
  
• For clarity in jargon: Parachains are individual networks running in parallel to create a harmonized, interoperable ecosystem.
  
• In May, they announced liquid staking to their (POS) network of blockchains, to reward additional revenue by earning extra yield in decentralized finance (DeFi) applications.
  
• We recently saw a massive growth in trading volume, however what resulted was a decline in price. This spike was an indicator of bearish sentiment.