Polkadot's native token DOT has seen a remarkable increase in value over the past day, with its price rising by 23% to $1.54 according to CoinGecko. This significant surge comes just weeks before the network's planned supply halving on March 14, which aims to reduce inflation and make the token more scarce.
The move is expected to have a positive impact on the token's value in the long run, but analysts are cautious about reading too much into the current rally. According to Danny Nelson, a research analyst at Bitwise, the timing of the surge suggests that market sentiment may be driving the move rather than any specific development within Polkadot.
'We're seeing double-digit green candles across the altcoin space,' said Nelson. 'DOT just happens to be one of today's leaders.'