Polkadot Price Jumps 43% as dotUSD Stablecoin Referendum Succeeds

The Polkadot price has risen by 43.2 percent over the past 30 days, driven in part by the success of Referendum 1944 on introducing a native stablecoin called dotUSD.

Referendum 1944 would create the new asset, declare it the stablecoin for the Polkadot network, and establish a liquidity pool for the DOT and dotUSD pair. It also allocates funds from the network treasury to support the introduction of the stablecoin.

The proposal aims to address a structural gap in the network by allowing applications, treasuries, and users to interact with instruments issued directly within the Polkadot ecosystem, reducing counterparty risk.

However, despite the high approval rate of 98.45 percent, the turnout was extremely low, representing only 0.1064 percent of the total DOT supply.

The second driver behind the price increase is the 21Shares Polkadot Staking ETF (TDOT), which holds real DOT with regulated custodians and stakes part of it to earn income from the network. However, its size is relatively small, comprising only half a percent of the total market capitalization.