Polkadot’s native token has only been transferable for about a week, but it is already proving extremely popular. The “new DOT”, as it was called after a changeover last week, has skyrocketed according to CoinGecko in the rankings and lands in seventh place between Bitcoin Cash and Litecoin. The ranking reflects the current market capitalization of the project, which is currently valued at over $ 5 billion.
Maybe revealing CoinMarketCap It is proving slow to update its leaderboards to reflect Polkadot’s position. This could be due to the fact that CoinMarketCap was acquired by Binance earlier this year, and Polkadot’s success doesn’t necessarily reflect the BNB token, which currently ranks twelfth on CoinGecko but is tenth on CoinMarketCap .
However, BNB is nowhere near the only mark pushed on the table by the success of DOT. In terms of development platform tokens, DOT ranks second in terms of valuation after ETH. All other competing blockchains, including Cardano, EOS, Tezos, Cosmos, TRON, and Binance chains, now have tokens in lower positions in the ranking than DOT.
More than hype
The start of Speckle was one of the most anticipated mainnet openings this year. However, it would be unfair to tell the project that the current token price is due to hype. The platform has been in development since 2016 and was originally designed by Dr. Gavin Wood, one of the original co-founders of Ethereum and inventor of Ethereum’s Solidity Smart Contract programming language.
Dr. Wood founded the Web3 Foundation, which is the main sponsor of Polkadot, and Parity Technologies. Parity, now owned by Dr. Jutta Steiner, the original security chief of Ethereum, developed one of Ethereum’s most popular software clients, but was also the main development shop for Polkadot.
Aside from the excellent references, the blockchain community has other reasons to be excited about the launch of Polkadot. The platform is fully interoperable, so any other blockchain can be connected to its main relay chain using bridging chains as a shard. Hence, Ethereum, EOS, or some other chain could interact with each other using polkadot as a “metachain”. The sharding ability means that it will already be able to scale to the level that Ethereum is aiming for once the full implementation of ETH 2.0 is completed.
These skills mean that Polkadot already has one Suite of applications that is starting to build on its platform. So far, Ethereum is the only blockchain that has attracted the development of dApp in a meaningful way. Indeed, a Recent study Researchers from London found that a significant proportion of the transactions with EOSIO, Tezos and the XRP ledger are practically meaningless and have no economic value.
In contrast, Polkadot has developers on hand to create dApps for a variety of use cases. Some examples are Stablecoin Acala Network, Joystream, a user-controlled video platform, and Blink Network for instant payments.
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