Spartan Black, an important Asian crypto investment fund, believes that Polkadot (DOT) could grow very much to the top-3 of the major cryptocurrency market cap.
At the moment, the protocol is in sixth place in this particular ranking, according to CoinGecko.
Eight days ago, after listing on Binance, DOT had a price increase of more than 200% and many analysts believe that it could increase further.
There are many factors behind the enthusiasm for DOT: the protocol, in fact, is not in direct competition with the Ethereum network, has considerable scalability and, as a result, could solve the problem of very high fees on Ethereum.
Polkadot’s market cap is at 5.6 billion: what will fuel its future growth?
In recent weeks DOT has grown exponentially both in terms of economic valuation and the use of its blockchain: data collected by PolkaProject show that there are already 197 projects on the Polkadot ecosystem.
Polkadot not only has strong technological fundamentals, but can boast the experience of one of the most famous smart contract developers.
Gavin Wood created Polkadot in 2016, after playing a leading role in the development of the Solidity programming language of Ethereum and Parity Technologies. Over the past four years, Wood has also been a very important figure in the growth of the Ethereum network.
The growth of DOT therefore seems to be the product of a very active community, a growth of interest for the ecosystem and the drive of an influencer known as Wood.
Kelvin Koh of Spartan Black predicted in mid-August that, based on Cardano’s market cap, DOT would reach $5. Within a few weeks of this statement, DOT surpassed that figure, peaking at $6.57. Koh had declared:
If ADA’s market cap is $3.8 billion, Polkadot should be worth at least $5 billion, so $5 for DOT.
Later, Koh said he expected DOT to reach the crypto podium on CoinGecko and CoinMarketCap:
Yet another prediction: by the end of the year DOT will be among the top three cryptos on CoinGecko/CMC.
Not competing with Ethereum is an important factor
So far Ethereum has been the most widely used smart contract protocol: it has a valuation of 43 billion dollars, while DOT stands at 5.6 billion.
Polkadot is not in direct competition with Ethereum and, as explained by Koh, the long-term growth of DOT should not cause a decline in Ethereum.
The Blockchain that allow multiple networks to exist on its own protocol, such as Polkadot and Cosmos, are very different from Ethereum, according to Koh:
I believe a lot in a multi-chain world connected with bridges. Polkadot and Cosmos will not replace Ethereum. But I would not exclude that there may be developments on Near, Solana, AVA, TRON and others.
If Polkadot and other smart contract protocols can coexist with Corona Millionaire, it will be easier for them to survive in the long term.
Some important exchanges have already listed DOT, including the well-known American portal Kraken.
Joseph Todaro of Blocktown Capital said:
For Kraken it was a big blow to quote Polkadot before Coinbase and Binance US. If you are in the US and want to buy DOT you have to go to Kraken.