Polkadot Becomes the 5th Largest Cryptocurrency Following its Redenomination

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • Recently the market capital of DOT rose to $5.25 billion and surpassed Chainlink to become the fifth largest cryptocurrency in the world.
  • Currently, each DOT token is trading at $5.85 and is almost down by 1.75% in the last 24 hours according to the data provided by Coinmarketcap
  • The main focus of Polkadot blockchain is to serve true interoperability.

Polkadot Tokens (DOT) now rank 5th on the basis of the total market capital. Recently the market capital of DOT rose to $5.25 billion and surpassed Chainlink to become the fifth largest cryptocurrency in the world. Currently, each DOT token is trading at $5.85 and is almost down by 1.75% in the last 24 hours according to the data provided by Coinmarketcap. The market capital and daily trade volumes stand at $4.99 billion and $534 million. Few days ago Polkadot underwent a redenomination following which the value of the token doubled. 

Trading Volumes Touched the $1 Billion Mark on 26th and 27th August

Polkadot was founded by the Web3 Foundation,a Swiss Foundation and was created in order to facilitate the operability of the blockchain networks together. The main focus of Polkadot blockchain is to serve true interoperability. Its native token DOT is used for carrying out different activities on its network. It is used for governing the network, staking and bonding. DOT’s price on 20th August was only $2.79 which rose by 190% to $5.31 in just 7 days. More impressively, the daily trading volume of the token crossed the billion mark on 26th August ($1.29 billion) and 27th August ($1.05 billion) consecutively. And the trade volumes have never gone down the $480 million mark since 25th August. 

New Dot Would be 100 Times Smaller than the Old DOT Conveys the Notice

The Polkadot redenomination took place on 21st August after the majority of the community members voted for it. The public notice declared that the redenomination event would be conducted on  21 August 2020 at 16:40 UTC block number 1,248,328. The notice also mentioned that following the redenomination the new dot would be 100 times smaller than the previous DOT. Redeomination essentially increases the supply of the token without changing its original market capital. 

Exchanges Listing the Token Prior to the Agreed Date

The Polkadot developer team had previously said that some exchanges may have decided to enact the redenomination procedures before the date that has been selected by the PolkaDot community. The team prompted that such actions may result in the token trading at lower levels than its actual market price. Such irresponsible actions may even put the Polkadot stakeholders at danger and are committing fraud through deceptive advertisements. The accused exchanges are Binance and Kraken who apparently listed the token three days prior to the redenomination event.

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