Polkadot Coretime Purchased For 69 DOT

According to on-chain data from the Coretime Hub, one core was bought for 69 DOT out of the five available for sale. The purchased amount was burned, a move that helps reduce inflation in the long term.

Agile Coretime, which went live in September, is a massive boost for Polkadot. Under this framework, Polkadot seeks to allocate network resources more efficiently while offering greater accessibility and flexibility for new startups and developers planning to build.

A core aspect of this framework is introducing a market-driven approach to block space data. In this model, it becomes easier for projects to purchase core, on-demand, or bulk, depending on their needs. Accordingly, projects can prudently use their resources, and the resulting flexibility is empowering. 

Polkadot developers also said Agile Coretime will enable developers to optimize for network performance. Beyond these advantages, since coretime can be traded as NFTs, it can create fresh avenues for monetization for smart traders.

Reducing Inflation, Will Prices Recover?

Even with this purchase, whether DOT’s inflation will rapidly fall in the coming months remains to be seen. Currently, the network’s inflation is at around 10%. However, the community has already voted and approved Referendum 1139, which seeks to reduce inflation from 10% to 8%.

Over time, developers will aim to further reduce inflation, even below 5%, depending on network growth, and a big part of Coretime purchases. The more users buy Coretime, the more DOT will be burnt and removed, reducing inflation.

For now, even after the purchase of the first core DOT, it remains under immense selling pressure, mirroring the general performance across the board. Although DOT is still in the top 20, the coin is down nearly 70% from March highs. Any dump below $3.8 could accelerate the sell-off, pushing DOT to fresh 2024 lows.

DOT Struggling, Bulls Capped Below $4.5

A look at the DOT price action in the daily chart reveals that the coin is trending inside the September 14 to 18 bear range. Even though there were gains on September 18, which has since acted as the base for the current swing high, bulls are not capitalizing on the momentum.

The immediate liquidation level, marking September 15 highs, is $4.5. If broken, it could trigger a wave of demand that may be the building blocks for more gains, extending the current 18% rally from September lows.

Interestingly, DOT bulls are slow to tap into the improving crypto sentiment and break this resistance level. This underwhelming performance also comes even after the introduction of Agile Coretime. According to Polkadot developers, this feature is a crucial component of the next network phase, Polkadot 2.0.

Agile Coretime Out As Developers Prepares For Polkadot 2.0

The Agile Coretime rollout, released last week, introduces multiple features that will benefit developers and protocols launched on the platform. Top of the list, developers said Agile Coretime introduces even more flexibility.

This is because the feature permits projects to access network resources as needed. They won’t have to be locked into a fixed slot like before.

Additionally, Agile Coretime seeks to push scalability higher. To do this, the feature enables adaptable core allocation. Subsequently, higher network efficiency allows the platform to support even more diverse applications.

Agile Coretime sets the ball rolling for the eventual activation of Polkadot 2.0. This upgrade sets the stage for overhauling the current resource allocation model, making it more market-driven.

Moreover, developers will be looking to introduce Asynchronous Backing, which seeks to separate the Relay Chain, which is core to Polkadot and Parachains. The idea is to improve efficiency and drive scalability.

Though developers are lining up major developments, DOT is lagging and trending near 2024 lows. DOT’s performance will largely depend on the general market sentiment and Bitcoin or Ethereum’s performance. DOT will likely benefit if these coins break their respective all-time highs in the coming weeks.