Polkadot is a Blockchain created by Ethereum co-founder, Gavin Wood, and its native cryptomontage is DOT. Its current price is $6, and it has a capitalization of $5.566 million that placed it in the 5th position of the crypto ecosystem.
What is Polkadot?
The main purpose of this chain of blocks is to link multiple specialized chains in a single protocol, allowing more efficient scalability.
The team behind it exposes the Bitcoin Champion project as a fragmented multi-string network. This means that it can process many transactions in different chains, without having to deal with bottlenecks.
On August 21, exactly in block 1,248,328, after a vote, Polkadot (DOT) underwent a modification, with which each unit was divided into 100 new units. That is, all users would have the same amount of money, but 100 times more coins.
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How did it explode upwards?
The incredible growth that Polkadot is experiencing, is being driven by 3 main factors: The new name, integration into major exchanges and increasing demand.
The exponential increase in the use of decentralized finance, caused an explosion in tariffs in the Ethereum network. Until ETH version 2.0 arrives, the collapse will continue to generate high tariffs.
The demand for high capacity networks, a product of the growing use of DeFi solutions, in confluence with the listing in the main exchanges, is generating the perfect storm for the increase in DOT prices.
Optimism for this project is high. From a major Asian-based crypto pool, called Spartan Black, they say that Polkadot has enough potential to climb to 3rd place in the crypto market
Chains like this could compete with Ethereum, however, analysts agree that it will not succeed in replacing it.
Kelvin Koh, an analyst for Spartan Black, sets out his vision for this project indicating that he believes in a world of multiple, interconnected chains. He does not rule out that chains such as Near, Solana, AVA and Tron will see growth in their development activity.
Thinking about which DOT can coexist with other PoS chains such as Cosmos, and the upcoming ETH 2.0, can support their long-term survival.