Polkadot leads rotation into older layer‑1s as Fed hike odds rise
Polkadot surge and other old layer‑1 gains
Polkadot’s token price rose 16.7% to about $1.25 on Tuesday, giving it a 42.5% gain for the week. The increase was part of a broader rally among layer‑1 blockchains that launched before 2018, with Cosmos Hub, Decred and Ethereum Classic each gaining more than 8% in the same period. Bitcoin, by contrast, fell 0.83% to $78,539.
Key numbers
- Polkadot: +16.7% (24 h), +42.5% (7 d)
- Cosmos Hub: +10.8% (24 h), +23.3% (7 d)
- Decred: +9.4% (24 h), +19.4% (7 d)
- Ethereum Classic: +9.3% (24 h), +18.3% (7 d)
- Polymarket odds for a 0.25 % Fed rate hike: 54.5%
- Brent crude closed at $99.31 per barrel
Polkadot stablecoin proposal
Polkadot’s community voted on a governance proposal (Referendum 1944) to create a native stablecoin called dotUSD. The proposal, submitted on Monday, is in its deciding period and has received 97.5% support among voters. If approved, the network would mint dotUSD using $2.5 million in USDT and allocate $2.5 million in DOT to a liquidity pool. No U.S. regulatory filing has been announced for the stablecoin.
Fed rate‑hike odds
Traders on the Polymarket platform increased the probability that the Federal Reserve will raise rates by a quarter point at its September 15‑16 meeting to 54.5%, up from 30.5% a month earlier. The market’s expectation reflects recent U.S. labor data showing steady employment and a 4.1% unemployment rate.
Market backdrop
The overall crypto market was valued at $2.70 trillion with Bitcoin holding 58.36% of the total. The Fear & Greed Index fell to 69, indicating a mildly optimistic mood. Brent oil prices rose to their highest close since July 23, a factor that analysts say has weighed on risk assets, including crypto.
