Polkadot [DOT], a defi protocol that allows for arbitrary data, not just tokens to be transferred across blockchains has recorded mammoth gains over the past week. Its native token DOT has surged by over 77% in the past week even flipping Bitcoin fork BCH to take the 6th spot. The defi token is barely a year old and yet has a market cap bigger than BCH is quite an achievement and another feather in Defi’s cap.
The price of the token broke-out post Binance listing and since then the token is on an upward curve currently moving around the $9 mark. The Binance listing along with $10 million funding support helped the token peak to new highs.
DeFi Success Story Continues, DOTS Leading the Way
Decentralized Finance (Defi) is the true success story of 2020, while Bitcoin’s mammoth rise has taken away the headlines from most of the other news, but defi still managed to shine by seeing a multi-fold growth of its market cap and better trading volume than centralized exchanges. Defi has brought various use cases for the crypto space through the use of smart contracts and looking to expand its reach further in 2021.
Polkadot’s successes in such a short period of time reflected Defi’s growing popularity and use cases. The new 6th largest cryptocurrency has recorded new all-time-highs as well as trading volumes in the past week itself.
Polkadot's price and tweet volume are both at an all-time high. $DOT is now the 6th largest cryptocurrency by market cap and quickly closing in on Litecoin and XRP after a 55% surge this week. pic.twitter.com/DXjN3NUM1c
— The TIE (@TheTIEIO) December 31, 2020
Many Are Already Claiming Polkadot [DOT] to be the New Ethereum
Polkadot blockchain and token were launched only this August however, the co-founder who also happens to be Ethereum co-founder wrote the original white paper for the defi protocol back in 2016 itself. Polkadot is popular for the use of parachains that allows for higher transaction throughput than the Ethereum network.
Eth 2.0 launch on December 1, 2020, did help the price of the token as the new PoS blockchain promises to offer a multi-fold transaction throughput with the help of sharding, thus a much better transaction processing capacity. The complete ETH 2,0 rollout would take anywhere around 2-3 years, till then the likes of Polkadot can help businesses to get better transactions and processing capabilities and thus become a primary choice.
van Schreven, a member representing KR1 the firm which has invested in Polkadot said,
“We’re going to see a growth of economic activity from all these chains because of this cross-chain aspect of the Polkadot ecosystem,“ van Schreven added. “Obviously, some of that will take away from Ethereum.”