Polkadot (DOT) is now the seventh largest cryptocurrency project by market capitalization, less than a week after the token began trading on exchanges. Over the past seven days, the value of the DOT token rose 79% as the blockchain interconnectivity project consolidated as the top ten cryptocurrency.
Polkadot’s quick emergence as the main actor comes about despite initial confusion about his token listing. Binance and Kraken began DOT trading three days before the official listing date, which led to unacceptable price drops on Polkadot’s token conversion, which was still ongoing at the time.
Polkadot moves up to the top ten
The DOT token has seen a 79% increase in less than a week since it started trading, rising from a value of $ 2.74 to $ 4.91. The average trading volume for DOT since inception has been close to $ 0.5 billion, and its market cap of $ 4.3 billion was enough to accommodate companies like Litecoin (LTC), Cardano (ADA), Binance Coin (BNB), and Ousting EOS (EOS).
Polkadot has seen a 79% gain in less than a week since launch. Source: CoinGecko
The top ten market capitalization for cryptocurrencies have been mixed up a bit in the past few weeks. Chainlink (LINK) rose to the top ten three years after it was launched, while Polkadot rose to the top ten almost immediately after it started trading.
With Polkadot continuing to rise at the time of writing, the prospect of overtaking Bitcoin Cash (BCH) and Chainlink doesn’t seem unimaginable (a 24% increase would do the trick).
Polkadot’s success comes despite a jumbled start with the major exchanges Binance and Kraken listing the DOT tokens days earlier.
Fixed issues with early listing
Polkadot was in the middle of the token switch when Binance and Kraken listed DOT on Aug. 19, causing massive price swings that only served to confuse and deceive DOT holders.
The Polkadot community had agreed on a token conversion in which the old DOT token was replaced by a new token at a ratio of 1: 100. The conversion had no impact on the value of the user inventory. The U.S. dollar equivalents remained unchanged while the token offering was changed from 10 million to 1 billion.
Unfortunately, when Binance and Kraken praised DOT trading on Aug. 19, they did so while the switch was still going on. This led to massive price differentials at DOT as observers would have witnessed essentially two different tokens operating at the same time.
The token conversion was completed on August 21, and Polkadot’s transformation was complete. Trusted data aggregators like CoinGecko are now recording accurate market capitalization data for the DOT token. However, not all of them were updated so quickly.
Another well-known market cap data aggregator, CoinMarketCap, has yet to update its feed to include the new seventh largest crypto by market cap. CoinMarketCap’s failure to include Polkadot in its feed could rightly sound alarm bells for cynics and conspiracy theorists.
CoinMarketCap was bought from Binance When founder Changpeng Zhao tried to make his exchange accessible to CoinMarketCap’s large user base in April 2020.
Given that Binance was one of the exchanges to ignore Polkadot’s listing schedule, causing two different DOT prices, omitting CMC made the tongue wiggle.