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Polkadot jumps as traders extend bets on a Fed rate hike next week

Polymarket traders raised odds of a quarter-point Fed increase, while Polkadot’s on-chain vote on creating a native stablecoin gained 97.5% support.

Reported · Written up by our desk · Market Structure

A rotation toward older layer-1 tokens helped lift parts of the crypto market Tuesday even as bitcoin and ether finished the first U.S. session since Labor Day lower, according to The Defiant. Traders also extended bets that the Federal Reserve will raise rates next week.

Polkadot led the move, rising 16.7% on the day to $1.25 and up 42.5% over the week, its second consecutive double digit daily gain. The token’s rally followed an on-chain proposal submitted on Monday that would introduce dotUSD, Polkadot’s native stablecoin, to be governed through OpenGov.

The proposal is running 97.5% in favor, The Defiant said, and it lists multiple actions including creating dotUSD as an asset owned by the protocol and opening a DOT-dotUSD liquidity pool on Asset Hub. The referendum also commits treasury funds of $2.5 million in USDT for minting dotUSD and $2.5 million in DOT.

Broad market figures were mixed, with total crypto value at $2.70 trillion and $91.54 billion of volume. Bitcoin last traded at $78,539, down 0.83% over 24 hours, while ether was at $2,484.83, down 0.29% on the day, and the Crypto Fear and Greed Index was 69, down from 71 on Monday, Alternative.me data cited by The Defiant showed.

Latest closeBitcoin $78,435.20 ▼0.9%

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