Polkadot’s parachain auctions impact DOT’s investment value by locking significant amounts of DOT, reducing circulating supply and potentially driving price appreciation. Successful auctions signal ecosystem growth, attracting developers and investors, which enhances DOT’s utility and demand. However, parachains don’t directly add smart contract functionality to DOT, limiting its intrinsic value growth compared to rivals like ADA or SOL. Sentiment on X suggests mixed outcomes—successful projects like peaq could boost activity, but parasitic parachains might dilute value. The Plaza update may unlock further potential, aligning DOT’s value with ecosystem success.