Market Bets Big on Polkadot (DOT), the Already Here ETH 2.0
Stocks splits are all the rage nowadays. Although they don’t “change a thing in a world of fractional shares,” and happen particularly during the bull market, they bring irrational enthusiasm in the market as we saw with Apple and Tesla, and most recently with Eicher Motors.
This trend seems to be spilling into the crypto market as well. As we reported, the YFI community made an informal proposal for a 10:1 split. YFI’s yet to come but Polkadot (DOT) recently had its redenomination in a 1: 100 ratio.
After the split, DOT became the 7th largest crypto asset by market cap of $4.9 billion, as per CoinGecko. And some are expecting more from DOT, to replace even the third-largest digital asset XRP.
This is because “Polkadot is arguably the most important crypto project since the launch of Ethereum in 2016. Think of it as ETH2.0 without all of the activity that Ethereum currently has yet,” said Spartan Black of crypto fund The Spartan Group.
This tweet didn't even get a chance to "age".
— SpartanBlack (@SpartanBlack_1) August 26, 2020
As DOT went past Bitcoin SV, Litecoin and others, trader Red said, “expecting all dead weight coins in the top 10 like LTC and BSV to get kicked out by legit and functioning projects.”
In just four days, the token jumped a whopping 105% to its all-time high of $5.75 yesterday. At the time of writing, DOT has been trading at $5.43.
— Arthur Hayes (@CryptoHayes) August 26, 2020
Over the weekend, the most highly anticipated competitor to Ethereum was listed on Kraken and Binance. Similar to other platforms within the DeFi space, it offers incentive staking yields and Kraken announced support for it with a 12% annual yield.
However, the listing wasn’t without issues as the exchanges enacted redenomination before the agreed-upon Denomination Day by the Polkadot community, resulting in “the apparent price at approximately 100 times lower than the actual market price.”
Polkadot founder Gavin Woods, who also co-founded Ethereum called the exchanges “unscrupulous,” for making such a move as their actions put the community at risk.
The best time to do it was before mainnet. Next best time was at launch. Worst time would be after launch when it could not possibly be coordinated.
— Jesse Powell (@jespow) August 18, 2020
Back in July, the project completed its final private token sale, just prior its launch in which it raised $43 million.
The network facilitates cross-chain communication and interoperability by connecting multiple blockchains with the advantages of sharding, scalability, transparent governance, upgradeability, and cross-chain composability.
Several DeFi projects are also integrated with Polkadot including the leading decentralized data oracles network Chainlink (LINK), lending and earning project Mantra DAO (OM), Ankr (ANKR), Ocean Protocol (OCEAN), and others.