Polkadot price continues to oscillate at a crucial support level after crashing by over 65% from its highest level in November last year. DOT token was trading at $4.15, a few points above the year-to-date low of $3.65. This article explains the top reasons why the DOT price may go parabolic in the coming weeks. Polkadot staking is surging The first main reason when the Polkadot price may surge in the coming months is that there are signs of rising demand from investors. Data by StakingRewards shows that the staking market cap has jumped to over $3.5 billion this year. This valuation gives it a staking ratio of 54.4%, which is higher than most related tokens like Ethereum and Solana. A high staking yield is a sign that many investors have a long-term outlook for the coin, as stakers typically hold these coins for an extended period due to the monthly return. More so, Polkadot has a staking yield of 11.68%, higher than other similar cryptocurrencies like Solana, Ethereum, and Sui. This yield means that s $10,000 investment in Polkadot will generate an annual return of about $1,100. Polkadot staking inflows Read more: Polkadot price predictions: 4 reasons DOT token may surge soon DOT ETF approval odds The other potential catalyst for the Polkadot price is the potential approval of a spot DOT ETF by the Securities and Exchange Commission (SEC). Companies like Grayscale and 21Shares have applied for that ETF. The SEC has undergone significant changes this year under the Donald Trump administration. He appointed Paul Atkins to head the agency, a major victory for the crypto industry, as he had been a long-time crypto lawyer. The SEC has signaled that it is open to more crypto ETFs as part of its light touch regulatory process. It has already ended lawsuits against tens of companies like Ripple, Coinbase, and Uniswap. An ETF approval would validate the role of Polkadot in the crypto industry. It would also lead to more inflows from Wall Street investors, especially if the agency allowed staking of the token. Stablecoin inflows steady The other notable reason to but Polkadot is that the amount of stablecoins in the network has been steady this year, a sign that demand for the ecosystem is rising. Polkadot has over $100 million in stablecoins in the network. Most of these stablecoins are USD Coin (USDC), which dominates over 60%. Stablecoins offer one of the best ways to measure the activeness of s network since they are the currencies used in the blockchain. The biggest chains in terms of stablecoins are popular names like Ethereum, Solana, and Tron Polkadot 2.0 upgrade The other major reason to buy Polkadot is that the network is changing through the process of Polkadot 2.0 upgrade. Polkadot 2.0 is made up of three key areas, three of which have already been implemented. The first one was asynchronous backing, which allowed parachains to produce blocks without being tied to the Relay Chain, reducing the block times from 12 seconds to 6 seconds. This made it one of the fastest players in the crypto industry. Polkadot 2.0 also had agile coretime, which replaced the traditional slot auction model that was seen as more complicated and expensive. The developers are now working on elastic scaling, which enables the network to adjust its computational capacity based on demand. This phase is still in development and will be launched this year. Polkadot price technical analysis DOT price chart | Source: TradingView The other reason to buy Polkadot is that it is in a strong support level. It has dropped to a low of $4.1, slightly above the key support at $3.68. A closer look at the weekly chart shows that it always bounces back by triple digits whenever it touches this level. Therefore, there is a likelihood that the coin will bounce back, and retest the important resistance level at $11.60, which is about 187% above the current level. A drop below that support point will invalidate the bullish outlook. The post 5 reasons to buy Polkadot, and why DOT price can jump 187% appeared first on Invezz
