How Polkadot [DOT] plans to shoot for the stars with this ‘Stellar’ deal
The Polkadot [DOT] network, on 28 March, announced a major partnership with the Stellar network as it planned to harness more liquidity. According to the announcement, the two networks will connect to each other through the Spacewalk bridge. The latter is a new development from one of Polkadot’s parachains, called Pendulum Chain.
<p lang=«en» dir=«ltr» xml:lang=«en»>Payments specialist @StellarOrg is connecting to Polkadot via the new Spacewalk bridge, built by parachain @pendulum_chain, enabling the smooth and seamless transfer of stable assets between the two ecosystems.Find out more: https://t.co/qoPmN2en9B
— Polkadot (@Polkadot) March 28, 2023
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This partnership will facilitate the smooth flow of stable assets across the two networks. The strategic agreement comes amid liquidity concerns following the pressure that stablecoins have been facing. Polkadot’s announcement may have also spurred the upsurge in the network’s development activity in the last 24 hours.
Source: Santiment
The focus on stable assets is by no means a coincidence. Some blockchain networks have unlocked robust value through their heavy focus on providing access to stablecoins. The TRON [TRX] network is one such example. Supporting the flow of stablecoins may unlock more liquidity for the Polkadot network.
At press time, DOT was showing signs of relative strength and a potential breakout. Its four-hour chart revealed that DOT’s price had been trading within a descending range for the last 11 days or so. Nevertheless, bulls have dominated in the last 48 hours, leading to a breakout from its descending resistance.
Source: TradingView
The higher relative strength is evident by the RSI’s push above
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