In Polkadot, the domestic cryptocurrency’s market capitalization has grown so much that it is among the top ten cryptocurrencies.
Notably, the cryptocurrency known as DOT was nowhere to be found in the top 100 cryptos about a month ago. Many industry experts attributed the meteoric rise to it DOTs “Redenomination” However, macro analyst Thomas Kuhn believed that other factors contributed to the rise in DOT’s market cap.
Polkadot crypto becomes the seventh largest crypto
Ethereum’s rival, Polkadot, is a blockchain interoperability protocol created by Ethereum’s co-founder, Gavin Wood. In less than a month, Polkadot Crypto DOT has reportedly risen to become one of the top ten largest cryptocurrencies by market cap, regardless of the fact that DOT didn’t make the top 100 crypto list a few weeks ago. One of the factors that DOT surge is related to is its redenomination.
The redenomination of the Polkadot crypto was more like that a traditional stock split. Through a stock split or stock split, a company can increase the number of its shares without reducing its total market capitalization. The market price of individual stocks usually goes down, but this makes the stocks more affordable for retail investors. This is what happened to DOT.
Polkadot Krypto was renamed on August 21st, the has increased the current supply of cryptocurrency tenfoldas voted by the community. Thus, an investor who held a DOT before the changeover now has 100 DOT. Although the market price of 1 DOT was lowered in the course of the switch, the total value for 100 DOT will still offset the actual value for 1 DOT before the event.
In addition, the development catapulted the total supply of Polkadot crypto from the original 10 million tokens to 1 billion. According to Polkadot’s creator Wood, the move was aimed at doing something The cryptocurrency is easier to buy and calculate. Per se, Polkadot’s conversion was successful, as the crypto earned significant points afterwards.
Despite the fact that it didn’t increase or decrease the initial value of DOT held by investors, it has sparked speculation among industry participants that it contributed to the rise of crypto.
Polkadot’s crypto rose from $ 2.92 prior to the switch $ 6.84 on September 1st. Although at the time of writing it is trading at $ 4.22. Its market capitalization is around $ 3.6 billion, according to Coinmarketcap.
Analyst believes there’s more to it than that
Thomas Kuhn spoke to Decrypt, Macro Analyst at Quantum Economics more reason for Polkadot’s meteoric rise. He explained:
“The project initially has a decent war chest so that they can fund a strong team. Polkadot is a relatively young project – compared to Ethereum, for example, which is faced with upgrading a legacy platform, and besides, DOT is a relatively new commodity. “He added that” the owners have not waited in years to give up the ship when the price first increased “.