In a welcome turn of events for Polkadot (DOT) holders, the token’s price has seen a significant rise following news of a potential ETF filing by cryptocurrency exchange giant Coinbase. This development comes after a prolonged period of struggle for DOT, which has fallen considerably from its all-time high (ATH) in 2021.
Polkadot, a popular blockchain network known for its interoperability features, has witnessed a steady decline in its token price since its peak in 2021. Despite a brief surge in March 2024, which saw DOT reach double its average price, the token has remained far below its ATH. The recent market crash further exacerbated the situation, pushing the price down to a low of $5.02 on July 5th. However, a recent recovery of 6.84% has brought the price back up to $5.99.
The news that ignited this price increase came from a tweet by DeFi researcher and crypto analyst 0xNobler. According to the tweet, Coinbase is reportedly in the early stages of applying for a DOT ETF, with the first stage of approval anticipated by July 15th. This news has instilled optimism within the Polkadot community, with many believing a DOT ETF could be a major boon for the network.
Coinbase’s potential involvement with a DOT ETF is particularly significant due to the exchange’s popularity and established reputation. The tweet by 0xNobler further highlights the potential impact, stating, “Polkadot ETF will be incredibly bullish for the entire ecosystem.” This sentiment is echoed by many analysts, who believe an ETF could significantly increase adoption of the Polkadot network, ultimately driving up the price of DOT.
The news has already had a tangible impact on the token’s price. After experiencing a decline due to the broader market crash, DOT has seen a noticeable rebound in the last 24 hours, likely fueled by the ETF speculation. This positive momentum suggests that further price increases could be on the horizon, especially if the ETF application is approved.
While the long-term effects of a potential Coinbase DOT ETF remain to be seen, the initial response from the market is undoubtedly positive. With approval for the first stage potentially coming within the next week, the coming days could be pivotal for Polkadot and its native token.