Polkadot (DOT) has reached new price records, rising more than 30% in the last 24 hours. Number 5 on the list of world most valuable cryptocurrencies with a market value of more than $ 11 billion.
The price of Polkadot (DOT) has increased by more than 30% in the last 24 hours and by more than 145% in the last 1 month. The DOT price hit an all-time high of almost $15 today. The market value of Polkadot, which is considered as Ethereum rival, has exceeded the $10 billion threshold. So, what were the reasons behind this rise of Polkadot?
Binance support
Binance, the largest cryptocurrency exchange by volume, announced on December 23rd that it would support Polkadot projects. The Binance exchange announced it had set aside $ 10 million in funding for it.
In addition, Binance users when visited the platform’s homepage on December 28, they noticed that DOT/USDT pair was replaced by the ETH/BUSD trading pair. Dot community didn’t liked that. After Polkadot price gained strong momentum, Binance had to move DOT pair to its home page instead of ETH, gaining attention of traders.
Huobi listing Announcement
Huobi, one of the most important cryptocurrency exchanges in both the Asian market and globally, announced:
While POLS deposit transactions started on exchange, on January 14. Huobi also announced that they had reserved 600 thousand POLS to be won by the DOT stakers. Such encouraging announcements made traders to buy more DOT, resulting high Dot prices.
Read Huobi article: https://support.hbfile.net/hc/en-us/articles/900004157326
Alternative to Ethereum
While the decentralized financial sector (defi) is getting more and more attention, the problem of scalability continues to be a headache. The total value of the DeFi sector exceeded $ 22.5 billion at the time of writing. As the DeFi field gradually expanded, one of the biggest problems, Ethereum’s scalability problems, began to show more and more.
Read: SEC Investigator Behind $ 1.3 Billion XRP Lawsuit Resigns
Polkadot, on the other hand, promises an ecosystem that will be an alternative to Ethereum for decentralized projects and DeFi users. DOT aims to solve the problem of scalability by running smart contracts in an ecosystem of smaller blockchains called parachain. This makes Polkadot a good alternative for those who want to avoid both Ethereum’s high transaction fees and scalability issues.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
