The last 8 days have been an insane drive for Polkadot (DOT).
The popular Protocol that was listed on Binance 8 days ago has soared by more than 200% and many popular beliefs point out that this is just the beginning. The popular protocol stands strong as the 6th largest cryptocurrency by market cap at CoinGecko. Spartan Black which is a major cryptocurrency fund based in Asia believes that DOT has more performance left in it, and it will be soon enough that it comes in the top 3.
Source: Trading View
The above display from CoinGecko is interesting because out of the 7 listed here, we see the green trend lines only for PolkaDot.
Will it fuel more growth?
The protocol is not directly competing against the Ethereum network which could be one of the favorable factors working for it. It also has a quick scalability and easily offsets the high fee issue which users suffer on Ethereum. At present the market cap of Polkadot is $5.6 billion and with DOT’s meteoric rise in the recent week in terms of valuation and projects, the goal of a higher market cap does not seem distant. Polkadot already has 197 projects in its ecosystem which is beyond excellence considering a project so new.
Polkadot also has strong fundamentals and it works on robust technologies. Polkadot was created by Gavin Wood back in 2016. He also can be credited for being a key brain behind the development of Ethereum solidity programming language and parity technologies. He also has fuelled the growth of Ethereum over the years with many disruptive technologies and innovations.
Polka Dot already has a lot of things going for it. It already has an active community and the involvement of Woods himself has been beneficial for the protocol. Kelvin Koh of Spartan Black had earlier predicted that DOT would hit the $ 5 based on Cardano’s market cap. Within a few weeks of the prediction, DOT surpassed the price of $5 and rose to $6.57. Koh said,
“If ADA’s market cap is $3.8B, then Polkadot should be worth at least $5B i.e. $5 per DOT.”
He also sees DOT in the top 3 in market cap on CoinGecko and CMC. He further said,
“Another prediction: within a year DOT will be Top 3 market cap on Coingecko/CMC.”
Not competing against Ethereum can be one of the dominant factors for its increase. Ethereum has been a steady and ruling smart contracts blockchain protocol with a valuation of $43 billion. If smart contract protocols along with Polkadot co-exist with Ethereum it will increase chances for its long-term survival. Major exchanges have already seen the promise in DOT and have listed it after its major denomination change. Exchanges in the United States, including Kraken, listed DOT quickly after its launch.
Joseph Todaro from Blocktown capital said:
“Kraken listing Polkadot before Coinbase and Binance US has been a massive win. If you are in the US and want DOT exposure Kraken is where you have to go.”