The blockchain network Polkadot managed to climb to the fifth box of the best cryptocurrency projects by market cap this September 3rd. as seen recently on CoinMarketCap.
According to the website, Polkadot is currently valued at around $ 5.14 billion, putting it above Chainlink and Bitcoin Cash.with a positive price change of one percent in the last 24 hours, which could signal a greater advantage over its closest competitors in the next few hours.
In the middle of a red tide It appears that Ethereum co-founder Gavin Wood’s blockchain platform is taking advantage of the current market situation and network congestion of Ethereum in addition to the high transaction fees to attract investors who are strongly convinced that Polkadot could be he ‘new Ethereum‘.
While we’ve heard this rhetoric before on projects like Tron, Cardano, EOS, to name a few, lIt is true that after the final launch of Polkadot last July by Parity Technologies and the Web3 Foundation and the most recent name that came up a few days ago, interest in the Polkadot blockchain has increased significantly.
This interest is reflected, for example, in the Polkadot-based DeFi project Stafi, in which around 1,700 addresses have “invested” around USD 205 million in the last few hours, which further increases interest in the chain several Polkadot.
While the DeFi app isn’t the only one above the ecosystem, many holders can use DOT tokens, Polkadot’s native cryptocurrency, as well as other assets from other blockchains to provide liquidity from staking assets. Debt that is booming among cryptocurrency enthusiasts today.
Basics to grow
Polkadot’s launch last July brought a new competitor into the exclusive DeFi sector, led by Ethereum. This week, gas prices on the network hit a record of up to 500 Gwei, which is a bit of a contradiction in terms for the mass adoption you want to achieve.
Additionally, due to Ethereum’s slow processing speed of only 10-15 TPS, Polkadot has a notable advantage According to its developers, the network can be scaled to 100,000 to 1 million TPS by implementing so-called parallel blockchains or “parachutes”.
And if that wasn’t enough The constructive character of Polkadot and one of its technical strengths lies in the vision of chain interoperabilityThis enables sidechains of any blockchain platform to be integrated into their main core.
For now, Polkadot joins Cosmos and Ethereum as the only smart contract platform developers are looking for as potential layer-one blockchainsbuilt into its core due to its interoperability.
Those technical basics related to improvement that Wood and the company have been trying to improve for the Polkadot launch over the past two years seem to be bearing fruit as more than two hundred projects in their network are based on the next generation of blockchains, to which your project normally relates and whose ecosystem is expected to grow faster over the next two years.
Revalued the price
In addition, the changeover of the token on August 22nd is undoubtedly an important point that managed to increase Polkadot’s market capitalization and, consequently, the DOT token price., the price of which has increased by + 145% since then.
While the mainnet started in May 2020, the DOT tokens didn’t become transferable until August 19, making the network fully functional. In addition, the Polkadot blockchain network’s governance community approved the 100: 1 switch to lower the price of the token and increase the supply.
At block number 1,248,328 on August 21 at 16:48 UTC, the DOT token was switched from its original sale. “𝘕𝘦𝘸 𝘋𝘖𝘛” is now 100 times smaller than “DOT (old)”. Therefore your DOT balance is now 100x higher and the price per DOT is 100x lower. pic.twitter.com/OEvfj1Ddmu
– Polkadot (@Polkadot) August 21, 2020
This move has pushed the price up for a little over a week and allowed Polkadot “DOT” to push the price up to nearly $ 7 per unit on major exchanges like KuCoin and Binance a few hours ago. at the time of writing.
Many analysts and traders are hoping for an even higher price hike when the rumors about the listing of DOT tokens on Coinbase finally come true.
Meanwhile, the overall value of the Polkadot Network is increasing across established platforms like Cosmos, Tezos, EOS, and Bitcoin Cash as developers begin to build on top of the Polkadot application layer known as the Substrate.
With projects like Alcala and Sora Network collecting millions of dollars in hours by building their DeFi ecosystem on the network, concurrently with other protocols like Chainlink trying to get their oracles onto the Polkadot blockchain, It’s no wonder we’re seeing a very active polkadot in the next few months and maybe keeping up with Ethereum, even though the road is pretty tough to beat.
Currently, the strength of true decentralized governance, as seen in Polkadot’s DAO for decisions critical to network growth, such as renaming DOT, has added value to technical and operational capabilities. of the network.
The assessment in relation to other chains with greater weight in history and time in the blockchain ecosystem seems to make sense for the time being, and Gavin Wood’s team seems to be using the experience it has gathered to demonstrate this.
Time will judge whether Polkadot will finally end up being the “killer” of Ethereum or be part of a handful of projects that indicated it should give it a try.