Polkadot was created by Gavin Wood, a co-founder of the Web3 Foundation as well as Ethereum. Polkadot is designed to support Web 3.0 development. What makes it special is its ability to process several transactions on several parallel chains, thus improving scalability.
In November 2016, Polkadot’s whitepaper was published and its token, DOT, launched in 2017. Polkadot’s Genesis block launched on May 26, 2020, so it’s still a young, up-and-coming platform. Then again, the same can be said for the world of crypto as a whole.
What is Polkadot?
The Polkadot platform is a multichain application that allows data to be transferred across blockchains, allowing interoperability between various cryptos. Or in plain English, it helps different cryptocurrencies talk to each other.
An interesting feature of Polkadot is its ability to upgrade automatically, eliminating the possibility of forks. It’s quick and easy to set up a blockchain on Polkadot, and it’s also possible for communities to customize their own governance based on their specific needs. All of this makes Polkadot an exciting and unique platform.
Polkadot Market Capitalization
The current market cap of Polkadot as of August 2021 is around $25 billion, making it the 9th biggest cryptocurrency according to CoinMarketCap ($24,606,857,456). The current price of a single DOT coin is just under $25. This is only a little less than its ICO price of $30.
Being ranked 9th says that Polkadot is pretty popular, considering there are many thousands of other cryptos it’s competing with. And while cryptocurrency isn’t entirely a popularity contest, it sort of is.
The market cap is important to know because the value of a crypto isn’t only measured by price. The market cap tells you the popularity and dominance of a cryptocurrency.
Most investors will agree that coins with a high market cap, typically over $10 billion, are generally considered safe to invest in. Keep in mind though, “safe” is relative. All cryptocurrencies are considered volatile investments. When you choose a high market cap, you are choosing the less volatile of the available options. And Polkadot fits that bill.
Bull Case for Polkadot
Most experts agree that Polkadot has a bullish outlook. While the price has appeared stagnant, it has climbed recently along with other cryptos during the recent surge. It has also become more appealing to developers looking for an alternative to Ethereum. In fact, Polkadot was referred to as an “Ethereum Killer” by Forbes magazine; it shows promise for consistent growth over time. Some experts believe it will reach $100 before the year’s end.
Looking further ahead, forecasts estimate continued growth over the next several years, thanks in part to the many projects that are running on it including many decentralized finance (DeFi) apps. And we all know how popular DeFi is right now. Of course, there are hundreds of projects on Polkadot now, including gaming platforms and new cryptocurrencies.
Bear Case for Polkadot
While unique in its problem-solving ideas, Polkadot is not without competition. Ethereum is probably the biggest competition, but Cardano isn’t too far behind. Polkadot has a few jumps to make before surpassing them.
The U.S. infrastructure bill also has people hesitant to jump into crypto in general until they know what’s going to happen. This has caused interest to go down in cryptos compared to a few months ago, even with the recent rally we have been seeing.
Recently in an interview, Max Keiser said that Bitcoin will beat gold, and all altcoins will be shut down to zero — which of course, this includes Polkadot. He says altcoins are “unregistered security sales” that the SEC can shut down at any time. While his criticism is regarding Ethereum, the same can be said for Polkadot. It can’t be a true deflationary asset when we don’t know the max supply.
Where to Buy Polkadot (DOT)
There are several exchanges where you can buy DOT, including Coinbase. Make sure to research each one before deciding where to make your purchase, as different exchanges offer different benefits.
You’ll also want to consider your experience level before choosing an exchange, because some may seem complicated to those who are new to cryptocurrency. Fees are another consideration when choosing the right exchange for your needs.