Why is Polkadot rising so fast (Will Polkadot continue to rise)?

Why is Polkadot rising so fast? What is the current state of Polkadot’s ecosystem? Why is Polkadot experiencing such significant growth? Why is Polkadot able to reach such high levels? These are some of the questions surrounding Polkadot’s rapid rise. This article is sourced from Hashpai (ID: hashpai), author: Lucy Cheng, and authorized by Planet Daily.

In the past year, with the development and widespread application of the blockchain industry, decentralized finance (DeFi) and stablecoins have become one of the main focal points. On October 11, 2017, Vitalik Buterin, the founder of Ethereum, published an article titled “Building the Future,” in which he mentioned that blockchain infrastructure is one of the most important technologies on the internet. However, in the following two years, significant upgrades were made to the smart contract platform on Ethereum, including allowing developers to deploy and run smart contracts more quickly and providing stronger security for users. But from the beginning of 2020 until now, these updates seem to have disappeared, indicating the imminent arrival of Ethereum 2.0, with Polkadot being the best example.

In recent months, several events have occurred in the Polkadot network, such as:

1. Polkadot is considered the most scalable blockchain capable of handling a large number of transactions.

2. Polkadot has many functionalities similar to Bitcoin.

3. Kusama will be connected as a new parallel chain to the Ethereum network, which is one of the core highlights of Polkadot.

Polkadot’s governance token DOT began distribution in the first quarter of 2021 and has been continuously rising. At the end of 2020, the price of DOT briefly exceeded around $100 and reached its peak in early December. However, it was not until this summer that it broke through this level again.

The Polkadot team stated, “Since its establishment, we have been working hard to make DOT as liquid as a string of characters.”

In addition, Polkadot has received support from the Web3 Foundation and is promoting the Substrate framework, which allows more people to develop projects on Substrate. “Substrate aims to solve the generality problem of blockchain.”

Several projects have already been developed using Substrate, such as Acala, Plasm, and Clover. Polkadot’s native asset, DOT, also has significant growth potential, with its total market value reaching nearly $4 billion by the end of September. Gavin Wood, the company behind Polkadot, has publicly stated that he believes Polkadot will complete all core functions, including scalability and security, within the next five years, while ensuring the development of the entire ecosystem.

Will Polkadot continue to rise?

Will Polkadot keep rising? Today is January 4, 2020. Looking at the weekly chart, Polkadot has reached a new high recently, and this high also occurred in December of last year.

According to QKL123 data statistics, Polkadot’s market value has grown significantly since March this year. Currently, the total locked amount of Polkadot is approximately 10.48 billion USD, and the cumulative trading volume in July exceeded 3 billion USD, reaching a historical high (note: Polkadot’s mainnet was officially launched at the end of June).

By the end of September, the total number of DOT staked in the Polkadot network reached 1.328 million.

If we consider the current market situation, this batch of DOT is now worth nearly 4 billion RMB. So, in a relatively flat market performance, how much room is there for further growth? This article will analyze and judge this bullish cycle. What is Blockchain 3.0? Simply put, it is integrating smart contracts, applications, programs, etc., from existing internet protocols into blockchain technology. Blockchain 2.0 is the integration of the existing financial service system with other technologies. Blockchain 1.0 is composed of Ethereum and Bitcoin networks, providing a new scalable infrastructure.

Blockchain 2.0 is a solution that complements Ethereum and Bitcoin, with its core components including the blockchain’s data structure and consensus mechanism, which together form the fundamental unit of the entire blockchain and can be used to run various types of applications. One of its main functionalities is to achieve cross-chain operations by linking them and support seamless transfer of funds or assets between any type of users, such as payment transfer fees. The core of Blockchain 3.0 is a new blockchain based on sharding technology, which has segmented execution capabilities and independent security and privacy from Ethereum. Blockchain 3.0 consists of multiple stages and specific use cases for building smart contracts on different layers and communication and business logic between blockchains.

Before Polkadot, we mentioned some hot topics.

1. Regarding the development trend of Blockchain 3.0, let’s first understand Polkadot, one of the most famous blockchains in the Polkadot ecosystem-Kusama. Kusama has two different chains, Kava and Bifrost.

2. Regarding Polkadot’s progress, Gavin Wood, the founder of Polkadot, stated that the Polkadot team plans to launch their mainnet working group (SCP) soon and will gradually release a related roadmap in the coming months. (Note: “SCP” refers to a blockchain created by developers on Substrate that is fully compatible with Ethereum.)