Prime sensible contract protocol Polkadot seems to be on a red-hot streak because it just lately broke into the upper echelons of cryptocurrencies. It seems DOT, the sensible contract protocol’s native token, is now the fourth-largest cryptocurrency within the trade based mostly on market cap.
A Month-Lengthy Rally Continues
Per knowledge from CoinMarketCap, DOT’s market capitalization now sits at $10.68 billion. With Litecoin’s market cap nonetheless pegged at $9.72 billion, DOT seems to have constructed a substantial lead and is at present sitting fairly at #4. The asset nonetheless has a $Three billion hole to shut if it hopes to flip XRP and break into the highest three.
DOT’s rise is approaching the heels of a stable week for it. Over the previous 24 hours, the asset’s worth has jumped by 28 %. Nonetheless, whereas it’s simple to imagine that the asset is barely holding robust this week, you’d be incorrect. DOT reached a brand new all-time excessive final month, breaking the$11 mark for the primary time. Since then, the asset has continued to coast off its momentum – in addition to that of Bitcoin.
Yesterday, Michael van de Poppe, a dealer on the Amsterdam Inventory alternate, explained that DOT might nonetheless drop to key assist areas round $7.5. if that occurs, the asst might rally to a brand new all-time excessive and probably consolidate above the $20 mark.
#Polkadot is without doubt one of the strongest bouncers at the moment because it hit one of many ranges I’ve marked beforehand.
— Michaël van de Poppe (@CryptoMichNL) January 13, 2021
Lofty Targets for 2021
The protocol might even have a a lot larger 2021 because it seems to resolve scalability points plaguing a number of decentralized finance (DeFi) initiatives. Final month, Christian Wooden, the protocol’s creator, revealed a roundup of its performances in 2020 and highlighted a few of its plans.
Within the roundup, Wooden identified DOT’s dominance within the staking scene. Knowledge from Staking Rewards reveals that 60 % of the asset’s circulating provide is locked in staking wallets.
Wooden additionally defined that the Polkadot blockchain has been doing appreciable work in making certain blockchain interoperability and connectivity. Final yr, the protocol launched Substrate, a blockchain constructing framework that enables seamless integration between blockchains. The yr additionally noticed the emergence of initiatives like Acala – Polkadot’s foray into the DeFi area – and Moonbeam, an Ethereum-compatible toolkit that allows sensible contract improvement.
As for plans going into 2021, Wooden confirmed that builders are engaged on bringing extra cross-chain interoperability into the crypto market. He identified the launch of Substrate 3.0, an improve to the blockchain framework that can lastly get full Ethereum compatibility. Polkadot plans to launch the improve earlier than the tip of 2021;’s first half.
Success with these initiatives might assist Polkadot usher in a brand new age for DeFi.