Why can Polkadot surpass BCH in just seven months?

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2 years ago

Recently, dot has risen as high as $10.51, and its current market value is $8.8 billion, which has exceeded the market value of bitcoin cash (BCH) of $7.4 billion.

Since its launch in July, Polkadot's performance has been impressive. Not only is the market stable, the price has risen by 170%, the market value of circulation exceeds that of bitcoin cash, but the activity of the whole ecology is also extremely high. There are two reasons

1. Development is extremely active

Development activity refers to the number of developers who are concerned, and the number of code references is a measure of the gold content of open source document technology.

In a sense, the more developers pay attention to the project and the more code references, the more popular the project is.

At present, Polkadot developers pay attention to 3500 and 1000 times of code references, second only to Ethereum and bitcoin development activity.

It can be seen that Polkadot ecological development is very active. And the continuous increase of development activity is also inseparable from Polkadot technology and incentive strategy.

Although Polkadot is often compared with Ethereum, Polkadot is the optimization and improvement of Ethereum, which improves its scalability. It also allows the transfer of assets across other blockchains. Through the compatibility of Polkadot, Polkadot ecology allows the emergence of Ethereum chain, which will greatly reduce the cost of developers.

In terms of training developers, Polkadot has launched Web3.0 training camp to attract many developers. In 2020, Web3.0 training camp successfully hatched 13 teams and led them through the first round of financing. At the same time, Polkadot held two online meetings for substratedevelopers, and the second meeting attracted about 1500 participants.

In addition, Polkadot provided 10.4 million dots (about $60 million at current valuation) to be deposited in Polkadot finance for major proposals and incentives for developers.

2. Keep up with the WiFi craze

At present, 90% of the defi projects in the encryption market are based on Ethereum. With the popularity of defi ecology, the problems of Ethereum network congestion and transaction handling charges have become prominent. The user flow and product experience are not good, and the ecological bottleneck of the development of defi begins to appear.

In the face of Ethereum's "overload" status, many public chain projects have begun to announce their layout, provide lower transaction fees, support defi projects, keep up with the tide of defi, and attract more projects to join. Polkadot, as one of the defi ecological public chains, has 12 defi projects.

Ethereum is more like Polkadot's "defi proving ground.". At present, there are mature defi in Ethereum, filecoin in distributed storage, zero knowledge proof, side chain, capacity expansion, NFT, game and other niches, and there are vacancies in Polkadot, which means that there will be projects occupying this position in the future.

Taking a long time, Polkadot is bound to become the "innovation factory" of defi. Polkadot's cross chain function will also produce projects focusing only on one function, which indicates that there will be many emerging defi projects on Polkadot, which will become hot spots to attract more users and projects to participate in Polkadot ecology and increase ecological activity.

It is believed that Polkadot's optimized technology and cross chain open ecosystem will attract more high-quality projects into Polkadot ecology more efficiently, and more and more projects can feed back the whole ecology with more new directions and opportunities.

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