The goal of Polkadot is to create a network that can connect all existing and future blockchains. Seems interesting. Right? Give it a read.
The release of a new cryptocurrency can be very exciting. You might have even tossed a few bucks into Bitcoin over the years and watched its value skyrocket. However, as more and more cryptocurrencies (or “altcoins”) emerge to join Bitcoin and Ethereum, it’s important to do your homework before purchasing an altcoin.
Cryptocurrency markets are extremely volatile and there is always a chance that investing now will result in big losses later on due to market corrections or hacks. There are plenty of reasons to invest in Polkadot, the blockchain project that promises an interoperable layer on top of Ethereum’s capabilities.
Having said that, Polkadot joined the crypto space later in the year 2015. Polkadot is a project built on Ethereum that aims to solve the scalability issues facing the blockchain. In other words, Polkadot will be an interoperable blockchain for “parallel” blockchains as well as an incentive-compatible system for validators to run these parallel chains without tokens of their own. In other words, Polkadot will allow for faster and cheaper transactions by creating a system of interchain transactions so that various chains can negotiate and update the status of their respective blockchains in real-time.
Why would you want to buy Polkadot coins?
There are many reasons why you might want to invest in the company’s coins (or tokens). One of the main reasons is that these coins will act as a “bridge” between Ethereum and the new platforms Polkadot works on. The goal of the project is to create a network that can connect all existing and future blockchains.
Polkadot can talk to other networks
Ethereum (ETH) is presently the biggest programmable blockchain in the cryptocurrency market. As per the State of the Dapps, over 80 percent of decentralized applications (Dapps) are erected on its network. Unfortunately, the Ethereum network has not held up with its dramatic evolution. Until and unless it can upgrade to Ethereum 2.0 (Eth2), the system is congested, expensive, and slow. Moreover, it does not work well with other networks.
Polkadot is not merely faster and more scalable but it is also developed to work with other networks. This would enable developers to create applications that used both the Bitcoin and the Ethereum blockchain, for example.
At some point, when the project is fully developed and implemented, Polkadot coins should give you more value compared to Ethereum (the base currency) because they will be used to maintain operations on different blockchains. This means that it’s a great way to get exposure to what could become a widespread network of interconnected blockchains. All of which will be fueled by the Polkadot coin.
It has gained over more than 630% since its launch
DOT was initiated in August 2020 and initially traded at $2.76 per coin. It surged to about a 630 percent increase in less than a year.
It hit an all-time elation of $49.69 on 15 May before falling more than half its value in the crypto price recession. If you are contemplating buying a Polkadot, think about whether you acknowledge the fact that coins have long-term potential. It may make massive gains in the prospective year, but it might also plunge even further. By investing for the long journey, you can hold through any short-term tolls.
The market capitalization of the Polkadot coin.
The Market Cap is $28,744,306,903
The Fully Diluted Market Cap is $32,163,670,486
Volume / Market Cap:- 0.03723
Circulating Supply:- 987,579,314.96 DOT
Polkadot Price (at the time of writing):- $28.95
Price Change in last 24 hours:- $1.16
24h Low / 24h High:- $27.36 / $29.92
Trading Volume:- $1,071,819,720.33
Volume / Market Cap:- 0.03723
Market Dominance:- 1.28%
Market Rank:- 9