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Polkadot News: 17/07/2025
Polkadot’s price rose 2.76% in 24 hours due to Gavin Wood’s proposed security model overhaul and a planned DOT-backed stablecoin, combined with broader altcoin momentum.
- Key proposal: Gavin Wood’s Proof of Personality model aims to slash $500M annual security costs.
- Stablecoin plans: DOT-backed stablecoin announcement boosted capital efficiency hopes.
- Market tailwinds: Altcoins surged as Bitcoin stabilized above $112K and crypto fear/greed hit 70 (Greed).
1. Primary Catalyst: Gavin Wood’s Security Overhaul
Polkadot founder Gavin Wood proposed replacing its Nominated Proof of Stake (NPoS) with a Proof of Personality (PoP) model during the Web3 Summit on July 16, 2025. The shift aims to:
- Reduce annual validator costs by 80% (from $500M to ~$100M)
- Introduce fixed validator payments and stricter staking rules to curb inflation-driven DOT sell pressure
- Enhance Sybil resistance via identity-based verification
- Reduce annual validator costs by 80% (from $500M to ~$100M)
- Introduce fixed validator payments and stricter staking rules to curb inflation-driven DOT sell pressure
- Enhance Sybil resistance via identity-based verification
This proposal aligns with DOT’s 14.97% weekly gain, suggesting traders anticipate improved network sustainability.
2. Supporting Factors: Stablecoin and Ecosystem Growth
- DOT-backed stablecoin: Plans for a native stablecoin collateralized solely by DOT were unveiled on July 17, aiming to improve liquidity and DeFi utility within Polkadot’s ecosystem.
- Developer activity: Polkadot ranked among top chains for GitHub commits (314 weekly activity score), driven by Polkadot 2.0 upgrades like Elastic Scaling.
3. Technical Context: Breakout Above Key Levels
DOT reclaimed the $4.00 psychological level on July 17, breaking a multi-week descending trendline. Technical indicators show:
- Bullish momentum: RSI(14) at 66.75 (neutral but rising)
- Fibonacci support: 61.8% retracement at $3.50 held firm during recent dips
- Volume surge: 24h trading volume spiked 27.78% to $458M, confirming buyer conviction
- Bullish momentum: RSI(14) at 66.75 (neutral but rising)
- Fibonacci support: 61.8% retracement at $3.50 held firm during recent dips
- Volume surge: 24h trading volume spiked 27.78% to $458M, confirming buyer conviction
Polkadot’s 24h rally reflects optimism around cost-efficient security reforms, stablecoin-driven utility, and technical breakout momentum. However, the proposal’s implementation risks and DOT’s -34.29% annual performance warrant caution.
Will Polkadot’s PoP model attract enough validator participation to sustain this rally?
What is the latest news on DOT?
Polkadot shows bullish momentum driven by technical upgrades and market sentiment, but faces headwinds from institutional portfolio shifts.
- Elastic Scaling upgrade improves network efficiency.
- Price surged 14% weekly to $4.20, breaking key resistance.
- Grayscale removed DOT from its Digital Large Cap Fund.
1. Technical Developments
Polkadot’s Elastic Scaling v1.6.1 went live on July 16, enabling parachains to dynamically adjust computing resources for faster transactions. This follows the JAM protocol integration, which enhances cross-chain compatibility (CoinMarketCap). These upgrades aim to boost developer activity, with parachains like Hydration and Bifrost reporting increased DOT staking (12M DOT locked as of July 15).
2. Market Metrics
DOT surged 14.97% in 7 days to $4.20, reclaiming the $4 psychological level on July 16. Trading volume spiked 28% ($434M), signaling bullish momentum. Analysts highlight a falling wedge breakout targeting $7.90 if $4.50 resistance breaks. However, the token remains 34.9% down YoY, reflecting lingering skepticism.
3. Business & Partnerships
Grayscale removed DOT from its Digital Large Cap Fund on July 14, reallocating 5.8% to Hedera (HBAR). This follows delayed SEC reviews of Polkadot ETFs, dampening institutional interest. Conversely, Nova Wallet launched Europe’s first DOT debit card on June 4, expanding real-world utility.
Polkadot’s technical strides and retail-driven price rally contrast with institutional caution. Watch for sustained developer traction post-upgrades versus ETF delays. Can DOT’s ecosystem growth offset Grayscale’s exit?
Check out the Polkadot page for the latest update.
CMC AI can make mistakes, please DYOR. Not financial advice.
