Polkadot has been struggling in the market since its peak in 2021. This rise represented the highest points in trading history. Despite its popularity, the DOT token price has been constantly losing value as it has failed to approach the ATH level in the last two and a half years. This situation did not change even in the bullish conditions in March. At that time, the DOT price made a significant jump, doubling the two-year average price for its best performance in the last two years, but this did not last long. Now the altcoin Polkadot price is 89% away from ATH and is poised for an uptrend, but things are about to change with the ETF discussion on the table.
Is a secret ETF application coming for Polkadot?
The DOT token attracted intense interest from investors shortly after its launch, and its price peaked several times. However, after this rise, the altcoin went into a completely downward trend. Since then, the DOT price has been generally low, with occasional small increases. The highest value reached in the last three years was recorded at $ 11.54 in March 2024, but this did not last long. The recent market crash has made matters worse for the altcoin. The DOT price dropped as low as $5.02 on July 5, but today managed to increase the price to $5.99 with a 6.84% recovery. Yet DOT is still down 17% on a monthly basis.
0xNobler, a DeFi researcher and cryptocurrency analyst, recently took to Twitter to share popular cryptocurrency exchange Coinbase’s secret plans for the DOT ETF. According to its post, the exchange is in the early stages of the application process for the DOT ETF, with first-stage approval expected in mid-July. The exchange took an important step on June 28 by launching the application process for DOT Futures, Futures ETF and Spot ETF. Since Polkadot is a well-known network, the Polkadot ETF will attract a lot of attention among its fans. The announcement has already boosted Coinbase Derivatives and if the DOT ETF is approved, it could lead to a massive increase in the price of DOT.
Developments increased the DOT price
The impact of the news has already started to be reflected in the token price. Previously, due to the impact of the market crash, the price of DOT had fallen even further. However, the 6.84% increase in the last 24 hours has increased the price again and more may come. This ETF initiative from Coinbase could bring upgrades in network adoption as well as the token price, which has been declining for years.
As a result, the Polkadot price has faced difficulties recently. However, the fact that Coinbase is in the application process for the DOT ETF was a silver lining for investors. If this ETF is approved, it could lead to a significant increase in the adoption of the Polkadot network and the price of DOT. However, it is important to remember that the approval process is still in its early stages and approval is not guaranteed. Still, this development is seen as a positive sign for the Polkadot ecosystem.
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