Polkadot Surges on Tokenomics Update and Deflationary Push
Polkadot (DOT) has gained more than 8% in price after an announcement about its upcoming tokenomics update and Agile Coretime upgrade. The update, which will take effect in March 2026, includes a hard supply cap of 2.1 billion DOT and a reduction in annual token issuance by 53.6%. This is seen as a move to introduce deflationary pressure into the market.
The Agile Coretime upgrade has also driven an increase in on-chain developer activity, with a focus shift from infrastructure to decentralized applications. Despite this bullish momentum, the long-term trend for Polkadot remains bearish below its 200-day moving average.
Traders are advised to watch for a confirmed breakout above $0.883 or a breakdown below $0.798 as signals for the next decisive move in the market.