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- Decentralised finance (DeFi) token, Polkadot (DOT) has witnessed continuous growth in value over the last few weeks
- The crypto asset has experienced an increase of over 450% since September 2020
- This development is taking place while other cryptocurrencies are facing a deterioration in their prices
Polkadot, which is a DeFi token, has experienced continuous highs in the crypto market for the past few weeks. This comes in the midst of other cryptocurrencies tanking in the digital asset share market.
Polkadot Accumulates Impressive Gains
Polkadot, abbreviated as DOT, is a decentralised finance (DeFi) token. Through its protocol, the platform combines numerous blockchains into one single network. This allows the transfer of value and other messages between different blockchains to take place in a secure ecosystem. This conveyance occurs in a trust-free manner. Essentially, DOT is oriented towards boosting scalability. It is a heterogeneous network which functions on a multi-chain technology.
The token has seen massive growth exceeding 450% since September 2020. It has made a major contribution to the expansion and advancement of the DeFi sector. Last year, the crypto asset held the value of over $1 billion. This whopping figure speaks for itself, and the token has amassed significant gains so far. This growth becomes noteworthy because of DOT’s increase in value in the middle of a downfall being experienced by numerous cryptocurrencies in the share market.
The world’s biggest digital currency, Bitcoin, has experienced a 10% plunge in the last 48 hours. Simultaneously, altcoins like Ripple, Litecoin, Ethereum and Cardano have witnessed a fall in prices ranging between 5% to 10%. However, Polkadot’s current market value exceeds $20 billion, adding to the token’s continuous escalation observed since December 2020.
DeFi Asset May Become Major Competition For Cryptocurrency
Analysts within the crypto industry are speculating the possible transition of Polkadot into becoming serious competition for altcoins such as Ethereum. DOT itself stems and functions on the latter’s network. The token is being viewed to hold responsibility for a significant market share in the near future.
In addition to the rapid expansion of DOT, the token is gathering interest from numerous institutional investors. It is also working towards multiplying the number of validator sets currently functioning on the DeFi network, with 274 of them being operated as of now. These are supported by more than 7000 single validating accounts.In 2021, the token has also introduced Westend, which is a testnet usable over the long term. The launch of two versions of Rococo has also been done. These are DOT’s parachain public testnets which are usable over a shorter period.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
