Spartan Black, a significant cryptocurrency fund based mostly in Asia, believes Polkadot (DOT) has extra gas left within the tank and will soar into the top-Three listing of largest cryptocurrencies by market capitalization.
At the moment, the favored protocol is listed because the sixth largest cryptocurrency by market capitalization at CoinGecko.
Since itemizing on Binance eight days in the past, the worth of DOT soared by greater than 200% and plenty of analysts consider the worth may rise considerably greater.
DOT/USDT each day chart. Supply: TradingView.com
There are a number of favorable elements buoying the sentiment round DOT. The protocol doesn’t instantly compete towards the Ethereum Community, it scales quickly, and consequently, may offset the difficulty of excessive charges on Ethereum.
Polkadot’s market cap is at $5.6 billion so what’s going to gas additional development?
DOT has seen meteoric development in latest weeks by way of each valuation and initiatives. Information from PolkaProject exhibits there are 197 initiatives within the Polkadot ecosystem already.
Aside from having sturdy applied sciences, Polkadot additionally has arguably one of the crucial adorned builders inside the sensible contracts house.
Gavin Wooden created Polkadot in 2016 and is a key determine behind the event of Ethereum’s solidity programming language and Parity Applied sciences. Wooden additionally performed a key position within the development of the Ethereum Community over the previous 4 years.
The mix of an energetic neighborhood, a rising variety of initiatives within the ecosystem, and Wooden’s involvement seem like driving the demand for DOT.
Spartan Black’s Kelvin Koh predicted in mid-August that DOT would hit $5 based mostly available on the market capitalization of Cardano. Inside weeks of the prediction, DOT surpassed $5, rising to as excessive as $6.57. On the time Koh stated:
“If ADA’s market cap is $3.8B, then Polkadot needs to be value at the least $5B i.e. $5 per DOT.”
As a comply with up prediction, Koh stated that he expects DOT to develop into a prime three cryptocurrency on Coingecko and CoinMarketCap. He stated:
“One other prediction: inside a 12 months DOT can be High Three market cap on Coingecko/CMC.”
Not competing towards Ethereum is a vital issue
Ethereum has been by far probably the most dominant sensible contracts blockchain protocol up to now. It has a valuation of $43 billion, adopted by DOT at $5.6 billion.
Polkadot doesn’t instantly compete towards Ethereum and as Koh defined, the long-term prosperity of DOT shouldn’t end in a decline of Ethereum.
Blockchains, like Polkadot and Cosmos, which allow a number of blockchain networks to exist on their protocols, are structurally completely different from Ethereum. Koh explained:
“I consider in a multi-chain world interconnected by bridges. Polkadot and Cosmos won’t change Ethereum. Additionally wouldn’t rule out chains like Close to, Solana, AVA, TRON and others seeing growth exercise.”
If Polkadot, together with different sensible contracts protocols, can co-exist with Ethereum, it raises the possibilities for long-term survivability.
Main exchanges have already listed DOT after its main denomination change, displaying assist for the cryptocurrency. Even U.S. exchanges, together with Kraken, listed DOT rapidly after its launch.
Blocktown Capital’s Joseph Todaro said:
“Kraken itemizing Polkadot earlier than Coinbase and Binance US has been an enormous win. In case you are within the US and need DOT publicity Kraken is the place it’s a must to go.”