Is Polkadot Ready To Take Out Bitcoin?
One of the top ten cryptocurrencies in todays market is Polkadot, an altcoin that has been consistent in terms of value. Compared to its competitors, it boasts one of the highest development activities of all the coins that have been placed in the top ten.
This does not, however, make it immune to the unpredictable nature of the market. Ultimately, it continues to be dependent on the token of all tokens, Bitcoin.
What Caused The Price To Go Down?
Two weeks ago, it was reported that the market took a 10% hit, with cryptocurrency as a whole briefly going down in value. Under ordinary circumstances, a coins recovery is predicted on the basis of network performance. This was not the case with Polkadot.
As much maintenance as Polkadot (DOT) puts into its network, it is unable to stop following Bitcoins lead. The correlation between Polkadot and Bitcoin is so strong that DOT is likely to follow Bitcoins price movement. Detrimentally, it resulted in the altcoin losing 33% over the start of the quarter.
Investors who took notice of DOTs devaluation opted to sell tokens to minimize their losses. This has been, in part, due to GOTs steady decline since the all-time high hit in early November. Over the course of the month, it dropped by 45.64%.
Polkadot has lost nearly 30% since the flash crash that occurred on Saturday. As with the previous network crash, DOT has recovered substantially. It made a return above $30, giving buyers hope that it may move up in the near future.
Is It Worth Investing In?
As with every other new coin that makes an appearance, it depends on how much of a risk an individual is willing to take.
Where Polkadot differs from tokens such as Dogecoin is in its dependency on Bitcoin. Having a similar base model and the ability to bounce back from market downtrends quickly has placed Polkadot in the top rankings of profitable cryptocurrencies.
In fact, it is predicted that the two-month dip has not affected DOT as much as people may think.
Seeing as Polkadots protocol connects public and private chains, the network guarantees users that it runs smoothly. The DOT token offers three clear purposes: offering network governance and operations, developing parachains through bonding and a user-based experience all altcoins seem to favor.
The longer Polkadot stays on the market, the more likely it is that it has cemented its place as a coin worth watching out for. Hot on Bitcoins heels, it has proven time and time again that it will remain on top as long as necessary.
Regarding future projections, Polkadot is introducing a push-pull mechanism that requests users bond their own tokens in a crowdchain. Although risky, it proves that Polkadot is considering the development of the crypto industry as a whole and making innovative choices that could finally permit the token from stepping out of Bitcoins shadow in the coming years.
Currently, Polkadot has 230,000 loyal participants, and reception to the push-pull scheme appears to be positive. At this point, it’s a waiting game to see whether this is the future of the crypto market or not.
