Now is the right time to invest in Polkadot.
Cryptocurrency is booming, a fact we are breathing daily. If you wish to invest in cryptocurrency, there are different options to invest in this year. While Bitcoin, Ethereum, Dogecoin are the most popular ones, other cryptocurrencies like Polkadot are secretly growing. Why should one invest in Polkadot in 2021?
Polkadot has quickly become one of the well-known cryptocurrencies, especially since 2020. Moreover, it is also viewed as a promising blockchain that can take over Ether’s dominance in 2021. Let’s know more about it and why one should invest in Polkadot, right now!
What is Polkadot?
DOT crypto is a next-gen, cutting-edge blockchain protocol that brings together numerous specific blockchains to a unified network. Just like Ether, it is a blockchain-powered network but more scalable. The central chain ensures the security of the entire network. On the other hand, the sidechains increase the network’s capacity.
It is run by Web3 Foundation on an open-source project. The aim of Polkadot cryptocurrency is to eliminate the slow communication process between public and private blockchains.
The difference between Polkadot and Bitcoin is that Polkadot is a Proof of State (PoS) network and Bitcoin is a Proof of Work (PoW) network. This implies that if you wish to earn DOT coins on the blockchain, you need to hold a specific amount of DOT and stake it.
Essentially, a user will be rewarded for staking DOT in return for risking their holdings network validation.
Why Invest in Polkadot?
In 2020, Polka crypto was one of the most profitable and most trusted cryptocurrencies. If we go back to 2017, the Polkadot Foundation arranged an ICO wherein it raised around US$140 million. However, it went into losses and hence had to undergo two sales rounds in 2019 and 2020. In 2017, the price of a DOT was US$30 and the DOT holdings were recovered in August 2020. This means, users who purchased a US$30 coin, US$100 new coins were offered for US$6 each.
The DOT journey started at US$6, but then it encountered a sudden fall to US$2.81. Because of the new redonimation, it rendered multiple tokens that boosted its market capitalization from 0 to US$5 billion in just one day. Hence, in a very short time frame, Polkadot has acquired a top cryptocurrency position.
Further, recently, Bitcoin has processed 3 transactions/second and Ethereum has processed 15 transactions/second. This indicates the scalability issue both these cryptocurrencies face. Yet, Polkadot is a winner in scalability.
Polkadot’s parachains enable faster processing of transactions in parallel. This then boosts throughput. It is said that the first parachains will launch later this year, which can process 1 million transactions/second.
With such great prospects, investors are moving away from Bitcoin and Ethereum and investing in Polkadot.
Should we Invest Now?
Yes, definitely. 2021 is the right time to invest in Polkadot. In May 2021, Polkadot was hit hard due to market volatility and came to US$17.71 from an all high of US$48.68. In June, it has been fluctuating and growing steadily. On June 12th, the price of Polkadot was US$20.17. However, since then, it has been growing. At the time of writing this, the price of Polkadot is US$25.26. In 24 hours, the price has changed by 16.16% and the market cap has increased by 16.19%. The current market cap of Polkadot is US$$24,057,083,041.