Polkadot has prepared all for an “epic” 2022 – Will all expectations pay off?

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2022-01-09 11:04:09

Although 2021 has seen Bitcoin (BTC), Ethereum (ETH) and several other layer 1 blockchains showing their dominance with impressive ATHs, it seems that Polkadot (DOT) is still quite modest. cost.

Polkadot has prepared everything for an “epic” 2022 – Will all expectations pay off?

Over the past 12 months, while BTC recorded a gain of around 25%, the DOT has exceeded 160%, as of the price it is trading at press time. Not only that, a growing number of recently published studies have shown that institutions as well as retail players have continued to diversify their investment programs into DOT.

Previously, several mainstream financial institutions, including entire banks, hedge funds, and others engaged in the “investment war” through Bitcoin, 2021 will see it again. number of companies above exploring the crypto asset sector using Polkadot .

These include Dubai-based investment fund FD7, which sold over $750 million worth of Bitcoin to buy ADA and DOT, Swiss bank SEBA launched a DOT staking product, and Europe’s largest telecommunications group. Deutsche Telekom has also purchased a significant number of DOTs, joining support for the blockchain as a validator for system provisioning, secure operation, and maintenance.

In this regard, a report by the well-known blockchain analytics company Messari revealed that 21 of the world’s 53 most famous fund managers actively invested in DOT in the third quarter of 2021, making trading consciousness became one of the most sought after assets, followed by other popular platforms such as Near Protocol (NEAR), Terra (LUNA) and Oasis Network (ROSE).

The altcoins most invested by funds in the 3rd quarter of 2021.  Source: Messari
The altcoins most invested by funds in the 3rd quarter of 2021. Source: Messari

One of the core reasons behind Polkadot’s growing growth is the high importance of cross-chain interoperability, an aspect of cryptocurrency technology that most experts believe will continue. define the future of this rapidly growing space.

Regarding Polkadot’s initial operational design, the project uses a unique concept, called “Parachain” – which allows a multi-layer 1 blockchain support platform to run alongside DOT’s central blockchain. To get an overview of Polkadot’s mechanism of action, please read the details through the article below:

The above setup can mitigate many of the transaction bottlenecks being experienced by prominent projects like Ethereum, whose gas fees continue to remain fairly high at around $40 even though the platform has gone through some rough patches. much-awaited upgrade over the past year, most importantly the EIP-1559.

Not only that, with the ETH2.0 implementation still quite far away, in the current iteration Ethereum can only handle about 30 transactions per second (tps), which is significantly lower than the current operating capacity. at Polkadot’s is 170 tps.

– See more:Polkadot (DOT) Founder Promises Era of Technology That Outperforms Ethereum (ETH)

Another aspect to be able to gauge Polkadot’s potential in the long term is that the ever-expanding pool of high-quality developers has continued to switch to DOT on behalf of other big-name projects. A study by Electric Capital shows that Polkadot currently has one of the largest ecosystems of developers in the Web3 space.

Number of full-time developers since the network's launch.  Source: Electric Capital
Number of full-time developers since the network’s launch. Source: Electric Capital

Besides, Polkadot’s growth rate is much faster than that of Ethereum when comparing the historical similarities of both platforms. Not only that, the project’s network expansion has outstripped other ecosystems, with cargo productivity remaining at 6,700%.

Even emerging projects like Avalanche (AVAX), Binance Smart Chain (BSC) or Solana (SOL), are working hard to promote DeFi, making the sector much more attractive to investors. Normally, it wouldn’t be able to muster the traction of an increased number of developers like Polkadot.

The first parachain auction has officially closed with 5 projects, Acala, Moonbeam (GLMR), Astar Network, Parallel Finance (PARA) and Clover (CLV), all of which have been deployed to the Polkadot network, with approx. 106 million DOT, accounting for 9% of the total supply. Currently, the Polkadot parachain auction has just returned with its 2nd series of projects, and Efinity (EFI) represents the first winner.

At the same time, there was about 2.72 billion USD of DOT locked in two years, which is more than 10% of the total DOT capitalization. Assuming the trend continues, there is a possibility that the number will increase to between 4 and 4.5 billion USD, thus helping DOT reduce selling pressure and somewhat limit the circulating supply in the market.

This not only demonstrates investor confidence in DOT during that time, but also encourages hundreds of thousands of backers to become active users of the ecosystem in their best interest. However, the launch pad is also carefully prepared for the new brand identity that was launched by DOT in January 2022.

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