The battle to become the next major coin is still ongoing as Bitcoin and Ethereum secured the top two places by market cap. Polkadot, a technology from the Web3 Foundation, is an advanced decentralized multi-chain protocol that appears to be cementing its place at the top of cryptocurrencies.
Cardano is a big hurdle for Polkadot to overcome because of the Goguen phase and Alonzo’s development. Polka dot to TOP 5? It is a very real possibility for the coming months as it registers more dApps.
Bitcoin has been the largest cryptocurrency by market cap and many other metrics since its launch in 2009, while the growth and success of Ethereum led to the proliferation of other Altcoins. Ethereum (ETH) has started to rise.
Ethereum set the ball rolling for dApps by creating a smart contract blockchain. Cardano is another blockchain that is scalable and has a clear roadmap to get to the top.
Cardano is currently at #5 among cryptos, according to CoinMarketCap rankings, and the Alonzo mainnet has been described as an “ETH killer”. Polkadot’s fairly new technology is on track to take Cardano’s #5 spot due to its substrate framework and Canary network, Kusama.
What is Polka Dot?
Developed by the Web3 Foundation, Polkadot is a scalable, secure network protocol that ensures seamless interoperability. It is described as “the protocol for the next web.” The technology allows for seamless transfer of data, not just tokens, between blockchains connected to the Polkadot network. Polkadot can exchange data between both permission and permissionless blockchains.
Polkadot is an open-source multichain solution with four main components: the relay chain, the parachain, the parathread and bridges that allow both the parachain and the parathread to communicate seamlessly with each other’s blockchains.
Can Polkadot knock Cardano out of the #5 spot?
The technology and team behind Polkadot have provided the tools to rank Polkadot behind Ethereum in the list of Altcoins. First of all, Kusama, Polkadot’s Canary Network built with Substrate and similar code to Polkadot, is an innovative platform for developers who want to take risks to scale their solutions and prepare for deployment on Polkadot.
Kusama is the experimental environment of Polkadot, which has drawn more developers to Polkadot. The platform has gained incredible traction for a solution that didn’t launch its mainnet until mid-2020. Its market cap is over $14 billion and has taken the crypto space by storm.
Built on substrate, Polkadot has a clear edge over its competitors because developers can easily build on it, even on a budget. Its speed, scalability, and interoperability are some of the key factors that help Polkadot stand out.
The platform has a block time of six seconds making it one of the fastest networks and unlike Ethereum which has major problems with congestion, Polkadot can handle 1000 transactions per second making it highly scalable.
On the other hand
As scalable and interoperable as Polkadot is, if the overall market downtrend is not reversed soon, Polkadot’s growth will be held back. Cardano’s Alonzo mainnet poses a major threat to Polkadot as it will incorporate smart contracts into Cardano’s blockchain. Cardano has been on fire lately, reaching 50,000 new strike addresses in three weeks. Polkadot is the new coin.
The Growth and Future of Polkadot
The price of Polkadot and its market cap is expected to rise after the launch and implementation of the parachain. The usefulness of Polkadot is undeniable as it bridges a series of blockchains and provides a solution to the plethora of problems developers face. Polkadot currently has more than 350 decentralized applications on its blockchain, including Clover, Seascape, and Acala. Polkadot is moving into the top 5 and the price could double to above $30 in the coming months. Polkadot has a current supply of 956,469,129 DOT coins.