On the last day of 2020, Polkadot surpassed Bitcoin Cash in market capitalization.
DOT rose to a maximum of $10.51, with a current market value of $8.8 billion, surpassing Bitcoin Cash (BCH)'s market value of $7.4 billion.
The performance of Polkadot since its launch in July has been impressive. Not only is the market stable, the price has risen by 170%, the circulating market value exceeds Bitcoin Cash, and the activity of the entire ecology is also extremely high. There are two reasons for this:
1. Development is extremely active
Development activity refers to the number of developers who are followed; the number of code references is an indicator to measure the technical gold content of open source documents.
In a sense, the more the number of developers following and the number of code citations, the higher the popularity of the project and the more popular it is with developers.
At present, the number of followers and code references of Polkadot developers are 3500 and 1000, second only to the development activity of Ethereum and Bitcoin.
It can be seen that the development activity of the Polkadot ecology is extremely high. And the continuous increase in development activity is also inseparable from Polkadot technology and incentive strategies.
Although Polkadot is often compared to Ethereum, Polkadot is an optimization and enhancement of Ethereum that improves its scalability. And an ecosystem that allows for the transfer of assets across other blockchains. Through the compatibility of Polkadot, the Polkadot ecosystem allows the emergence of the Ethereum chain, which will greatly reduce developer costs.
In terms of cultivating developers, Polkadot launched a Web3.0 training camp, attracting many developers to participate. In 2020, the Web3.0 training camp successfully incubated 13 teams and led them through the first round of financing. At the same time, Polkadot held two online conferences for Substrate developers, and the second conference attracted about 1,500 participants.
In addition, Polkadot provides 10.4 million DOTs (approximately 60 million U.S. dollars based on current valuations) stored in Polkadot finances for major proposals and incentives for developers.
2. Keep up with the DeFi boom
At present, 90% of the DeFi projects in the encryption market are built on Ethereum. With the popularity of the DeFi ecosystem, the problems of Ethereum network congestion and skyrocketing transaction fees have become prominent. The user traffic and product experience are not good, and the ecological bottleneck of DeFi development has begun to appear.
Faced with the fact that Ethereum has reached the "overload" state, many public chain projects have begun to announce their layout, provide lower transaction fees, support DeFi projects, and keep up with the DeFi boom to attract more projects to join. As one of the early deployments of the DeFi ecological public chain, Polkadot currently has 12 DeFi projects.
And Ethereum is more like a polkadot "Defi testing ground". Currently mature DeFi on Ethereum, Filecoin for distributed storage, zero-knowledge proof, side chain, expansion, NFT, games and other ecological niches, Polkadot has vacancies, which means that there will be projects occupying this position in the future.
Looking at the time, Polkadot will inevitably become a DeFi "innovation factory". Polkadot's cross-chain function will also give birth to projects that only focus on a certain function, which indicates that many emerging Defi projects will be born on Polkadot and become hot spots, attracting more users and projects to participate in the Polkadot ecosystem and increasing ecological activity. .
It is believed that Polkadot's optimized technology and cross-chain open ecosystem will attract more high-quality projects into the Polkadot ecosystem more efficiently, and more and more projects joining can feed back more new directions and opportunities for the entire ecosystem.
