As cryptonians ( crypto enthusiasts/holders/community ) anticipate a boom for altcoins, there’s been some interesting development elsewhere in the crypto space as of recent.
DOT(Polkadot) has been smoking hot, recently blasting past XRP to take fourth spot on the market rankings.
Coingecko, a prominent analytics site shows DOT usurped XRP in market cap after the former gained an extra 29% in the past 24 hours. After hitting a peak price of $14.95, DOT has receded to $13.6. Its peak price of $14.95 put its market cap above $13.5 billion compared to XRP’s $13.3 billion.
But there seems to be an inconsistency here. While Coingecko reports the circulating supply as 952,979,553, Coinmarketcap – a crypto rankings and market data site owned by Binance puts its figures lower at 899,872,934. Note though, that Coinmarketcap was late to list Polkadot.
Polkadot, which is supposed to serve as competition to Ethereum according to Cointelegraph, is a fully interoperable multi-chain protocol that allows other blockchains to connect to the network as a sidechain. As a network protocol, it allows arbitrary data – not just tokens – to be transferred across blockchains. Working on “Substrate technology”, Polkadot has a number of parachains (known as shards in Ethereum). Parachains allow developers to deploy and allow users to use applications based on Polkadot technology. This is what many believe will give the platform traction as a potential Ethereum competitor, having reigned supreme in the world of DeFi and smart contracts.
The momentum that Polkadot is riding on is not some arbitrary occurence. The recent launch of its Rocco parachain testnet late December and Plasm Network’s deployment of the first parachain on Rococo V1 are major contributing factors to Polkadot’s surge in price.
Today, we are excited to announce Plasm Network Parachain on Rococo V1. We have successfully connected Plasm to Rococo V1 as a Parachain
— Plasm Network (DApps platform on Polkadot) (@Plasm_Network) January 13, 2021
DOT is currently at $13.6 as at the time of writing.