Polkadot backs the tokenization of Paraguay's $6M innovation hub, while increasing the TVL of parachains.

Polkadot (DOT) rises 2% this Thursday, driven by Paraguay's investment to tokenize the Innovation Valley of Asunción. I find it fascinating how this Latin American project has opted for this blockchain instead of more popular ones to digitize its assets. The technical and on-chain outlook remains bullish as DOT rebounds within a triangular pattern, accompanied by a Total Value Locked (TVL) in parachains exceeding $300 million.

TVL of parachains exceeds $300 million as Paraguay tokenizes its innovation center in Polkadot

On Tuesday, Polkadot announced the tokenization of the Paraguayan innovation district, Valle de Innovación de Asunción (AIV), in collaboration with Moonbeam and Better Use Blockchain (BuB), a tokenization platform on Moonbeam.

The innovation center will be tokenized into 130,000 shares backed by $6 million. These equity tokens will allow holders to vote and benefit from the shares according to Paraguayan regulations. Will this model be replicable in other Latin American countries? I have my doubts about the regulations in other territories.

DeFiLlama data shows that the TVL of Moonbeam is at $8.42 million, with Hydration leading among parachains with a TVL of $287.27 million, representing 89.72% of the total. This translates to a TVL of $320 million across the entire parachain ecosystem. Not bad, although it remains a fraction of what we see in other major networks.

Polkadot within a triangle maintains a balanced situation

Polkadot is bouncing within a symmetrical triangle pattern on the daily chart, challenging the 50-day Exponential Moving Average (EMA) at $3.928. The multichain blockchain token could target the 200-day EMA at $4.318, approaching the upper trend line of the triangle.

If DOT closes above this dynamic resistance, it could extend the rally to the $5.297 mark, aligning with the R2 pivot level.

The Relative Strength Index (RSI) is at 49 on the daily chart, floating below the midpoint and pointing upwards. A possible increase of the RSI above the neutral line would indicate a resurgence of bullish momentum, which could be a buying opportunity before the pattern breakout.

Looking down, if DOT falls below the support trend line or the low of $3.689 from Monday, it would mark a bearish outcome of the price pattern. This case could drop Polkadot to the low of $3.427 from August 2.

Personally, I see this Paraguayan initiative as an interesting use case, but I wonder if it will be enough to significantly boost the price of DOT in such a competitive market. The real test will be in the practical adoption and the tangible benefits it generates for the participants.