Parallel Finance wins Polkadot’s fourth Parachain

Parallel Finance was the big winner of the fourth Polkadot Parachains auction and became known through social networks.

It should be clarified once again that the Polkadot Auctions are an event that acts as a meeting of bidders, at which those who wish to participate as funding bidders must submit their DOT guarantee in support of the blockchain project that they see linked to the Parachain want space from the network and receive a reward in return.

The auctions are conducted according to the candle auction modality, an auction modality which, although the first on the list, does not guarantee the winner because there is a secret bidding period during the auction that is taken into account to determine the successful project and avoid possible dishonest moves or last minute financing.

Parallel Finance the winner

Parallel Finance wins Polkadot’s fourth Parachain
Parallel Finance wins Polkadot’s fourth Parachain

The project, which had been overtaken in the previous edition of Astar Network and prevented it from historically being the third winning parachain in the first auction round, won with a total contribution of 10,106,263 DOT when the auction candle went out, that amount of DOT Received, it was the third Parachain that has received the most contributions from DOT to date, behind Moonbeam and Acala, Network, but ahead of Astar.

Parallel Finance, a project that has focused on innovating and improving the usability of DeFi with a decentralized platform that is the most secure and, in their opinion, easier to use, to give everyone access to financial services, he said during his Parachain – Hearing with 4007 DOT contributors who will emerge as winners. It should be noted that at the end of the auction Parralel Finance received a DOT amount of 10,751,519 DOT, an amount that is an increase of 10.29% compared to the amount retained at the start of the auction and in relation to of all DOTs issued so far, they hardly account for 0.9% of the DOTs.

The ones who have one last chance

A no less interesting fact in this edition is that Efinity has overtaken the Manta Network and crept into sixth place on the table of projects with the highest number of entries received in this auction, and is featured in this edition, the fourth had started occupying third position. Now everything seems as if the last place in this auction series is contested by three projects, Clover Finance, Efinity and Manta Network, which have no difference in contributions of no more than 2 million and allow the possibility of surprises during the game fifth and final auction, which will be held from yesterday to the 16th of this month.

The project Clover Finance, which started first in the fourth auction, ended the auction in the same position, reporting a 41.18% increase in DOT yield from the start. Manta Network, which initially ranked second and competed very tightly with Clover Finance in the last few editions, was in turn outperformed by Efinity as it had no major increase in DOT contributions received, but only a few 109,903 DOT, which is just an increase of 3.10%. What else happened to Efinity, which had an 88% increase in DOT contributions during its fourth auction, is an odd fact that Efinity is a parachain project focused on digital assets and that the Enjin team would be behind it.

Finally, there is a metric to highlight that participates in the auction by giving their DOT on their favorite project. who had Parallel Finance, which surprisingly ranks seventh on this metric, behind Efinity, Litentry, Astar, Manta and the others mentioned, for which we consider the case of Having a larger number of actors does not represent a victory in the parachains tender and this could result in that number of contributors, which are much higher, being represented by retail investors.This is the case with Efinity and Litentry, who did not win Parachain and are ahead of Parallel who won.

DOT incidents

As mentioned in the previous auction update, DOT price was still reacting strongly to Bitcoin’s volatility and this is part of the lack of maturity when the asset fell below $ 30, a price zone that we considered important.

If we look at the previous graph, we can see that DOT’s withdrawal from supply in the market carries no more weight than the feelings of fear and uncertainty that are flooding the market for the time being of cryptocurrencies in general, however if a change in market sentiment is generated it is very likely that DOT will benefit from it.

Right now we are seeing on the weekly that the price is being held in an important zone below the still forming MA 50 week moving average and if it does not hold it the price could fall to the corresponding USD 21 at the Fibonacci retracement Level of 23.6.

It is important to note that you should not regard this as an investment recommendation or a trade, it is just an informative and technical note that the publisher makes according to the behavior of the movements occurring in the market and does not specifically represent the overview of Cointelegraph in Spanish.

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