Polkadot halving approaching, triggering a rally! DOT up 27% in one week, ETF approval becoming the next catalyst?

DOT1,57%

February 27 News: As the Polkadot network’s first halving countdown begins, its native token DOT has risen approximately 27% over the past week. The halving is scheduled for March 14, when the annual issuance will decrease from about 120 million to 55 million tokens, a 50% reduction in supply, fueling market expectations of DOT’s scarcity.

According to previous community decisions, the total issuance cap for DOT is set at 2.1 billion tokens, with a gradual reduction mechanism implemented every two years. On March 12, a series of protocol upgrades will take effect, including the introduction of Dynamic Allocation Pools (DAP), adjustments to staking and validator economic models, and more. Tokens that are burned or confiscated will be transferred to the DAP, managed collectively by the governance system.

The new rules require validators to stake at least 10,000 DOT and set a minimum commission rate of 10%. Additionally, a new StakingOperator proxy type will be introduced, allowing institutional stakers to separate custody from node control. Nomination unbonding periods will be shortened from 28 days to approximately 48 hours. After meeting the minimum staking requirements, stakers’ assets will no longer be at risk of confiscation. These changes are seen as key steps to enhance network security and liquidity.

In terms of price, DOT previously fluctuated between $1.25 and $1.35 before breaking out with increased volume, reaching a high of $1.75 before retreating to around $1.60 for consolidation. As of press time, the price is approximately $1.62, with a slight correction over the past 24 hours.

Additionally, ETF developments are also drawing attention. 21Shares and Grayscale Investments have both submitted spot ETF applications to the U.S. Securities and Exchange Commission, which are still under review. Approval could bring new funding channels to the Polkadot ecosystem. The combined anticipation of the halving and potential ETF catalysts makes DOT’s future trajectory a market focus.

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