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Polkadot Plummets, Developers Unveil Game-Changing Upgrades

Coin WorldWednesday, Feb 5, 2025 12:08 pm ET

1min read

Polkadot, a popular layer-1 coin, experienced a significant price drop this week, erasing all gains made since September 2021. The coin reached a low of $3.53, underperforming other layer-1 coins such as Solana and Mantra.

Despite the recent downturn, Polkadot's developers have two potential catalysts lined up that could drive the coin's price higher in the coming months. The first is the upcoming Polkadot 2.0 upgrade, which is expected to be the most significant update since the coin's inception in 2016.

The Polkadot 2.0 upgrade will introduce two key features: agile coretime and elastic scaling. Agile coretime simplifies developer onboarding by providing on-demand access to affordable blockspace, similar to parallel CPUs. Elastic scaling will refine Polkadot's core structure, enabling parachains to increase block production and transaction capacity.

Additionally, Polkadot will introduce the Joint-Accumulate Machine (JAM), which will replace the relay chain. JAM will function as a rollup chain, operating transactionlessly by focusing on guarantees, assurances, judgments, preimages, and tickets. This launch is expected in early 2025 and will allow developers to build on Polkadot similarly to Ethereum, eliminating the need for the current auction process that has discouraged adoption.

Polkadot has also allocated funds to support its ecosystem ahead of the JAM rollout. This includes the $155 million Polkadot Treasury, a $45 million JAM Implementer Prize, and a $30 million Decentralized Futures Program. These funds aim to foster innovation and growth within the Polkadot ecosystem.

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