Polkadot supply is about to halve: DOT price analysis this week

Polkadot Governance has approved the hard supply cap of DOT to 2.1 billion, which has previously changed the unlimited issuance of approximately 120 million tokens per year to 2.1 billion. Currently, the supply is close to 1.5 billion, and there is still room for additional issuance of 600 million pieces. After the announcement, the DOT price fell 5% and traded at about $4.12. Analysts point out that volatility may occur in the short term, but may remain stable in the long term. Key support is between $3.60 and $4.20, while resistance is between $45 and $55 in optimism. This change aligns DOT with scarcity-based token economics aimed at enhancing its value over time.