Polkadot’s parachain auctions significantly influence DOT’s investment value by reducing the circulating supply of tokens, which can create upward price pressure. During auctions, DOT holders lock up tokens for up to 96 weeks to support projects vying for parachain slots, effectively removing a portion of the supply from the market. For instance, by Q1 2022, 127.8 million DOT (11% of the total supply, worth $2.9 billion) were bonded for 13 parachains. This lockup mechanism reduces liquidity, potentially driving price increases, as seen when DOT hit an all-time high of $55.08 in November 2021, shortly after the first auction announcement