Editor's Note: This article comes fromHoneycomb Finance News (ID: fengchao-caijing), Author: JX kin, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance News (ID: fengchao-caijing)
Honeycomb Finance News (ID: fengchao-caijing)
, Author: JX kin, reproduced by Odaily with authorization.
This step seemed to open the gate for DOT. Affected by this, the price of DOT currency fell, falling from a minimum of 373 US dollars to 287.7 US dollars within an hour, with a maximum drop of 23.7%.
The DOT that opens the transfer on the chain eliminates the bubble of traders buying and selling futures on the exchange. In the future, it will gradually move towards four main functions: platform governance; support for the Polkadot consensus mechanism; binding DOT to add new parallel chains; Pay fees and send cross-chain messages.
What DOT holders need to pay attention to is that it is estimated that on August 21, when the block height reaches 1248328, the DOT will change the face value, the original 1 DOT will become 100 DOT, the value will become larger, but the asset value will remain unchanged . The official Web3 Foundation also reminds users not to "split" DOT before adjusting the face value of DOT.
Polkadot, which was born as a benchmark against Ethereum, is still far behind in market capitalization. DeFi, the most popular application at the moment, has also made initial development in Polkadot, with 12 protocols.
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After DOT completed the mainnet mapping in early July, the Polkadot network opened the on-chain transfer function at block height 1205128 at 0:39 this morning. DOT has truly become the mainnet currency, and users have also ended the era of buying and selling numbers on exchanges.
From the DOT blockchain browser, it can be seen that within 1 hour after the transfer was started, there were 667 transfers on the DOT chain, and 352563.87 DOTs were transferred on the chain. The transfers totaled $116 million.
Yesterday (August 18) afternoon, investors concerned about DOT began to predict the price in the community. At that time, DOT rose from $327.3 to $392, the highest increase was 20.4%, and the intraday closing price was $359.9.
But when DOT actually realized the on-chain transfer, the currency price fell. OKEx quotes show that within 1 hour after DOT started transferring, DOT dropped from a low of $373 to a low of $287.7, with a maximum drop of 23.7%. Investors who are short on DOT can't hide their joy, "Those who eat the band, this night is not in vain."
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After DOT launched the transfer function on the chain, the currency price fell sharply
The bearishness of the market may come from the judgment that "real holders of DOT will sell". Before the on-chain transfer function is enabled, the DOTs traded by investors on the exchange are in fact only futures, digital transactions, and cannot be charged or withdrawn. Even so, the market has high expectations for the launch of the main network of DOT, and the currency price has been rising accordingly. Since Polkadot’s second-stage mainnet launched the native token DOT mapping in early July, the currency price has started a round of rise from a low of $151, and once rose to $447 on August 11.
In the Polkadot network, there are four main functions of DOT - for voting to participate in network governance, such as the upgrade of the Polkadot platform; supporting Polkadot's consensus mechanism, such as holders can perform certain functions by staking DOT; binding DOT To add a new parallel chain; ordinary users can use DOT to pay fees to validator nodes when passing cross-chain messages.
DOT's opening of transfer can also be regarded as its main network will enter another turning point. According to the plan, after the on-chain transfer is realized, Polkadot will enable the auction function of the governance side chain, and the project as a key link of star cross-chain - the implementation of the cross-chain message passing XCMP (Cross-chain Message Passing) solution.
Once this link is completed, it marks that Polkadot will have a fully functional relay chain - it is like the central control system of the Polkadot network, responsible for maintaining the consensus of each parallel chain, making a decision to confirm the finality of each block and the integrity of the entire large network. governance.
Currently, the five phases of the Polkadot mainnet launch have been preliminarily completed. In the next step, Polkadot will continue to launch other functions, but the official has not yet announced specific information.
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The Polkadot mainnet is becoming more and more abundant, which also makes the outside world look forward to it. After all, it was born as a benchmark against Ethereum, trying to improve the operating efficiency of Ethereum.
The expectations of the blockchain industry for Polkadot are mainly focused on its cross-chain function and network speed, which will solve the current problems for the construction of decentralized applications on the chain.
Not to mention, if the current popular application DeFi can run in a speed-up cross-chain network, various protocols on different public chains will realize interaction, the transfer speed of assets will be accelerated, and the cost will also be reduced.
In addition, after the DeFi riots, non-homogeneous tokens with oracles and NFT (Non-fungible token) also began to rise. Ethereum network congestion and high Gas fees have made some users miserable when using DeFi protocols and investing in encrypted art. According to data from BTC.com, as of 8:00 am on August 19, there were 80,000 unconfirmed transactions on Ethereum, the average price of Gas reached 102Gwei, and the average cost of transaction fees was nearly $1.
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Ethereum has more than 80,000 unconfirmed transactions
Whether the Polkadot after the completion of the main network can succeed Ethereum is still unknown, but some players have noticed that some applications are being migrated to Polkadot.
A collector of encrypted art said that Ethereum has "squeezed" NFT applications out. The network is very congested and transaction fees are expensive. The cost of collecting encrypted art on Ethereum is not low, unless you want to buy art high-net-worth works.
He also saw that NFT platforms and applications are currently migrating to the Polkadot ecosystem because the network has high performance and is compatible with Ethereum.
The Darwinia Network, which focuses on distributed cross-chain token exchange, is based on Polkadot. The network is currently in testing and is expected to be officially launched in the third or fourth quarter of this year.
However, the DeFi sector, which is in full swing on Ethereum, is a little deserted in the Polkadot ecosystem. There are only 12 DeFi protocols displayed on Polkadot’s official website, and all of them are in their infancy.
Some users believe that if the Polkadot ecosystem can have an application that explodes the market within 3 days, it will bring attraction to DeFi migration. Obviously, this expectation has too much contingency.
