Polkadot (DOT) benefits from technical momentum and ecosystem updates, with renewed developer activity and optimistic price targets.
Technical breakthrough (August 12, 2025) – DOT rose by 4% to $4.12, targeting $4.20.
Launch of Polkadot 2.0 (August–September 2025) – Updates include flexible scaling and full compatibility with the Ethereum Virtual Machine (EVM).
The MandalaChain project in Indonesia (July 28, 2025) – Building a national digital infrastructure based on Polkadot.
Detailed analysis
1. Technical breakthrough (August 12, 2025)
Overview:
The value of DOT rose by 4% to $4.12 after maintaining important support between $3.84 and $3.86, with trading volume exceeding 7 million DOT. The price surpassed resistance at $3.92, indicating bullish momentum towards Fibonacci targets between $4.15 and $4.20. The market also saw an increase in trading volume of 216,000 DOT within five minutes, confirming accumulation by institutional investors.
What does this mean?
This is a positive indicator for DOT, as the increase in trading volume and the upward channel pattern suggest continued upward pressure. However, failure to hold above the $4.00 support may lead to profit-taking. The technical analysis aligns with broader gains in the cryptocurrency market (+1% in the Coindesk 20 index). (CoinDesk)
2. Launch of Polkadot 2.0 (August–September 2025)
Overview:
Polkadot 2.0 will introduce new features such as flexible scaling, improvements in inter-network communication (XCM v5), and full compatibility with the Ethereum Virtual Machine (EVM) by December 2025. It will also replace the Join-Accumulate Machine (JAM) update's Relay chain with adjustable small parachains, increasing processing capacity to over a million transactions per second.
What does this mean?
This development is considered positive to neutral for DOT. The updates enhance the platform's appeal to developers and increase interoperability between networks, but there may be short-term selling pressure due to the unlocking of 2.3 million DOT (~$9.4 million) between August 11 and 18. In the long term, compatibility with EVM may attract Ethereum developers. (CoinMarketCap)
3. The MandalaChain project in Indonesia (July 28, 2025)
Overview:
Polkadot collaborated with MandalaChain to build a national digital infrastructure in Indonesia targeting over 280 million users. The project focuses on identity systems, payments, and governance, leveraging Polkadot's parachain architecture.
What does this mean?
This is positive news for DOT, reflecting practical adoption of its technology. The large project volume may drive demand for DOT staking and governance participation, though there are risks associated with implementation. (Polkadot)
Summary
The price movement of DOT and protocol updates indicate increasing interest from institutions and developers, although lockup events and economic risks such as ETF delays warrant caution. Will the launch of MandalaChain be a new driver for DOT towards a $5 target?
