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- the launch of cross-chain communication on Polkadot will allow DOT transfers to various parachain networks.
- This increases the number of use cases for the DOT token on parachains like Moonbeam and Astar Network.
- Data from Cointelegraph Markets Pro and TradingView shows that the price of DOT has been hard hit by the six-month downtrend in the crypto market.
- with the token now trading at A notable support/resistance level, it remains to be seen if the ability to transfer DOT across various parachains will help lead to an increase in demand for DOT.
- One notable use for DOT that has been rising in popularity in recent months is liquid staking and minting stablecoins by using crypto assets as collateral.
- DOT can also be used in various DeFi applications including yield farming, lending and borrowing.
- as the introduction of cross-chain communication spreads throughout the Polkadot ecosystem, additional uses for DOT are likely to emerge, especially as parachains roll out increased functionality.