Polkadot is the 8th largest crypto in the World. It was founded in the year 2017 by the web3 Foundation. Its market value currently stands at $53.8 Billion. Polkadot’s DOT coin has surged 35% in the past 7 days to form a lifetime high of $54.55. It is currently trading around that level only, as of 4th November 2021. The DOT coin is one of the very unique coins among all the others. It has many unique features of its own and has a very active and transparent developer team. Although, Polkadot is still very far from the $100 level, but this is how long targets are formed in the crypto markets. Small targets of 20-30% are achieved within a single day in this asset class. So, now that Polkadot has comfortably breached the $50 resistance level, many analysts predict it to reach $100 very soon.
The macroeconomics of the crypto markets look extremely positive. The second-largest crypto Ethereum is forming a new lifetime high every day since its network upgrade towards Ethereum 2.0. Other than that Solana and XRP are rising at a great pace too, adding more value to the overall crypto market. Polkadot is very close to taking down XRP, and becoming the 7th largest crypto in the world. The valuation gap between the two is around $2.6 Billion.
What is so special about Polkadot?
It is a multi-chain platform, that lets its users transfer, data, resources, tokens, coins, etc. All through its secure decentralized blockchain network. It is formed by three people, of which one is the co-founder of Ethereum, the second-largest cryptocurrency. Polkadot’s mission is to combine or connect all the private and public chains together. So that the independent Blockchains can easily exchange data and information or make transactions via their Relay chain.
Polkadot has allocated a huge sum for the development of its platform. For adding more and more innovative features on its platform. Polkadot’s Relay Chain is a unique idea of its committee that plans to bring all the independent blockchains together. Unlike other blockchains that only let certain nature and structure of chains to join their network. Polkadot is extensively flexible and heterogeneous. As it does not care about the nature or the structure of the chain. Its Relay chain has various parachains with different-different characteristics. Polkadot is enabling interoperability between chains, regardless of their features or their status as a private or public chain. Interoperability lets diverse chains perform arbitrary messaging, including value. This interconnectivity could encompass privacy-oriented projects, forks, permissioned chains, and more.
Polkadot allows all parties to take public and private chains and “plug them in” to a shared connectivity layer. Chains can choose to maintain their own validator set, or utilize Polkadot’s pooled security system to verify their transactions via the Relay Chain. Polkadot helps one chain to leverage another.
What should investors do now?
People who are already holding Polkadot currency in their wallets should sit back and relax. In fact, given the high pace of development and the unique features of Polkadot, interested investors can take new positions in the DOT coin. Polkadot shows high potential and little developments and triggers could lead to high-value creation in its coin. Its parachain network concept has attracted several investors and has led it to the Top 10 cryptocurrencies in the world.
Many analysts predict Polkadot to reach $100 in a few weeks or months which will double its valuation to $100 Billion making it the 3rd largest crypto in the world. But that is if other cryptos don’t grow at all, which certainly won’t happen. Because Binance Coin is just $6 Billion away from breaching the $100 Billion mark.
There are no negative sentiments surrounding the crypto industry for once. And the coins are rallying to form fresh highs along with proper development in their technology. So, there is absolutely no reason at all to exit existing positions. Although swing traders who have reached their target can book their profits.