What’s the Polkadot?
Many smart contract platforms aspire to become a ‘Ethereum Killer’ one day. Yet Polkadot is going to take a different approach. Polkadot has exceeded every single Ethereum rival in the overall market cap, including major time competitors like Cardano and EOS. It’s not that the platform wants to deal with Ethereum. Instead, Polkadot aims to serve as a bridge across the network where Ethereum apps and properties can be ‘wrapped’ to the Polkadot community for quicker and cheaper features.
Polkadot and its local cryptocurrency, Spot, have overtaken Bitcoin Cash (BCH) as the sixth largest market cap cryptocurrency.
According to CoinGecko, a market capitalisation aggregator for cryptocurrencies, Polkadot has a market cap of $7.63 billion. It is currently ranked sixth by market value, relative to Bitcoin’s $6.35 billion market cap. What inspired many people is the short time it took for Polkadot to achieve this level. Polkadot is under the age of a year.
Though Polkadot reached this landmark, co-founder Gavin Wood published a revised path map for the new year. Wood also included a number of data on the development and progress of the network. More than 200 projects have been financed by the DOT grant initiatives and the DOT treasury. Over 1 billion DOTs are active in the network, accounting for 63% of the coin’s circulation stock.
Polkadot plans to serve as a layer-to-scaling solution for the smart contract ecosystem. So far, Polkadot only communicates with Ethereum apps and properties, but aims to extend and incorporate other blockchain systems.
Bitcoin Cash is stagnating
It’s been a tough couple of years for Bitcoin Cash. It has recently liberated itself from its all-time low costs. However, there hasn’t been much hope about the currency. In November, Bitcoin Cash went through another hard fork that separated the chain into two different and special chains. Still pretending to be the ‘real’ bitcoin by many of its backers, this hard fork was yet another split in the group.
Typically, particularly in the cryptocurrency room, the rising tide, such as the rise in the BTC price, would increase both vessels. But in the case of BCH, the crypto world and investors as a whole tend to ignore it. In the meantime, other ventures, such as Ethereum, are rising by more than 500 percent year-on-year and hitting multi-year market peaks. It’s hard to tell whether Polkadot’s sixth place acquisition reflects DOT’s success or BCH’s loss.
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