Polkadot becomes fourth crypto-asset by market capitalisation, displacing XRP

The DOT token price of the Polkadot project rose 58.4% in 7 days and 175% in the last month. This allowed the coin to displace XRP from the fourth position in the crypto-asset capitalisation rankings.

As of this writing, the DOT has a total market value of $14 billion and a token price of $14.78.

Many in the crypto community are optimistic about DOT’s future prospects. User Mr.Business does not rule out a rise in the token price to the $100 mark amid a possible Ethereum rally to $5000.

The Polkadot interoperability protocol was created by Ethereum co-founder and Parity Technologies director Dr. Gavin Wood. Polkadot is considered by many to be one of the most promising next-generation blockchain projects. The protocol is based on Parity’s Substrate framework.

Polkadot was tokenised in 2017. At the time, the project raised $145 million by selling 5 million DOTs. But there wasn’t enough money for the development, and in 2019 the Polkadot team held a token sale again. According to the WSJ, the project’s capitalisation has since risen to $1.2bn.

According to PolkaProject, there are already 338 projects deployed on the Polkadot network, ranging from stabelcoins to social networks. At the beginning of autumn 2020, there were around 200, and the network itself only launched in May this year.

As a reminder, DOT’s rise in price accelerated significantly in December 2020 on the back of support from the largest cryptocurrency exchange, Binance.