Coinbase Reportedly Gearing Up for Polkadot ETF, Ecosystem Altcoins Expected to Skyrocket

The announcement led to a massive volume spike in Coinbase Derivatives. Once DOT ETF gets the green light, ecosystem altcoins and similar fundamental tokens are expected to skyrocket

Coinbase, the top crypto exchange in the United States, is preparing to launch a Polkadot exchange-traded fund (ETF), as per sources close to the matter. The initial approval stage for the ETF is set for July 15. A Polkadot ETF would be a major boon for the whole ecosystem.

The exchange began the ETF process by introducing DOT Futures Contracts on June 28, followed by a DOT Futures ETF and, finally, a DOT Spot ETF.

This news caused Coinbase Derivatives to experience a large increase in volume. Once the DOT ETF is approved, market observers anticipate that ecosystem altcoins and other fundamental tokens will soar.

Kusama Network is at the top of the list: Kusama is an experimental blockchain built on Substrate that aims to provide a highly interoperable and scalable framework for developers. The token is currently trading at $23.10 with a market capitalization of $349 million.

Astar network is a Polkadot parachain that links the DOT ecosystem with L1 blockchains like Ethereum and Cosmos. Another token to watch is Centrifuge, a decentralized asset financing protocol that links DeFi with real-world assets.

Social gaming website platform Enjin has over 20 million users and 250,000 gaming communities. The ETF launch could propel the project to new heights. Similarly, the Manta Network, which offers scalable execution environments for dApps, focuses on zero-knowledge [ZK] applications and is another noteworthy project likely to benefit from a Polkadot ETF.

An ETF would generally open up opportunities like increased exposure to a broader investor base, potential price appreciation, opportunities for ecosystem development, and heightened marketing visibility within the broader crypto investment community.

Polkadot’s Spending Spree On Promotional Activity

On the other hand, Polkadot’s Treasury reported significant financial activity in the first half of 2024. As per the report, the treasury has spent as much as $87 million [11 million DOTs] on various initiatives, $37 million of which was spent on marketing. The report, however, sparked controversy: Out of $87 million in expenses, revenue accounted for a mere $1.1 million. Community members have called for controlled spending, highlighting the urgent need for accountability.

If the Polkadot Treasury continues to be drained in this questionable manner, the next thing in question might be Polkadot’s future. $87M spent in six months, with only two years of budget left, what’s next for Polkadot?

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