Understanding Polkadot’s True Worth
Bitcoin recently broke through $66,000 and reached an all-time high (ATH) on October 20. If Bitcoin’s market cycle theory is correct, then there are less than three months left in this bull market before a new bear market cycle begins. So, what should time-poor investors, be prioritizing as a result? The good news is that BigONE knows the answer.
First and foremost, we should examine historical data to see if the so-called Bitcoin market cycle theory holds true.
For the first ATH: in December 2013, the price of Bitcoin reached a record high of $1241.9; for the second ATH: in December 2017, the price of Bitcoin reached a record high of US$19870.6; for the third ATH: in October 2021, the price of Bitcoin reached a new record high of over $66,000. Based on historical data, we can conclude that the Bitcoin bull market occurs roughly every four years. If the current bull market follows this rule, it will be over in less than three months.
What other areas should investors consider, aside from Bitcoin, in the potentially limited time left in the bull market? As a long-term participant in the blockchain industry, the team at BigONE Exchange believes that the launch of the Polkadot parachain should be a focus for the second half of this bull market. So, what are the factors driving the rising value of the Polkadot ecosystem?
Polkadot is increasing its funding
Polkadot has always been favored by the capital market since its inception. As an example, consider Polychain Capital. It is a well-known digital currency hedge fund in the United States, as well as at well-known venture capital (VC) business in crypto. Andreessen Horowitz (A16z), Boost VC, USV, and other well-known VC firms are among its investors. Polkadot’s biggest advantage, according to Polychain, is its community. Furthermore, Polkadot is very appealing to developers. Even before the parachain is launched, we can see there’s many teams developing core DeFi infrastructure based on the Polkadot network, such as decentralized exchanges, lending, synthetic assets, equity derivatives, privacy, and so on.
The state of Polkadot’s current financing strength appears to be very similar to the early days of DeFi. The actions of top crypto agencies which served to accelerate the growth of DeFi, are now repeating themself with the Polkadot ecosystem.
The price of Substrate-based blockchain tokens has skyrocketed
Substrate and specific application chains are Polkadot’s most notable innovations. More and more developers will choose to build applications on blockchains optimized for specific scenarios in the future. Substrate significantly reduces the development team’s technical costs. Polkadot’s ecosystem makes these chains interoperable, interoperable, and composable, allowing for a new generation of applications. Investors focused on Polkadot’s ecosystem should pay attention to the https://polkastarter.com/ website, as all Polkastarter projects on this website have skyrocketed in value without exception.
Take OptionRoom Public as an example. The project is based on Substrate and its token is Room. It used to log on to Polkastarter at a price of 1 ETH = 32258 ROOM (≈0.052 USDT) and has sold 967,000 ROOMs, which is approximately equal to 30 ETH. When ROOM went online on exchanges such as Uniswap, the price soared to 3 USDT, an increase of 5700%.
Or take a look at PolkaCover, which is also a project built on Substrate and uses the CVR token. According to Polkastarter public information, it used to raise publicly at a price of 1 ETH = 15625 CVR (0.1 USDT), and then when CVR went online on the Uniswap exchange, and the price rose to 0.78 USDT, a 680 percent increase.
It seems that together the Substrate-based blockchain project and the Polkadot Parachain project are emulating Ethereum’s glory.
Polkadot Parallel Chain Card Slot Auction
Following the first and second rounds of the Kusama parachain auction, the number of KSM participating in staking on the main network has surpassed 2.7 million, accounting for more than a quarter of the total KSM. As can be seen, the Kusama parachain auction + staking reduces the circulation of KSM, which will inevitably have a positive impact on the currency price by reducing supply.
Polkadot’s “cross-chain” technology is a smash hit, driving the blockchain market.
Many people think of “cross-chain” for the first time when they think of Polkadot. Polkadot’s official introduction states that the project’s goal is to create a “high-performance and scalable heterogeneous multi-chain blockchain”. So, what exactly is cross-chain? What role does it have?
Simply put, cross-chain allows one project’s wallet, DApp, and smart contract to be integrated into the wallet, DApp, and smart contract of another project. No matter how good a project is, its accomplishments are limited to the scope of the project. If data and assets cannot be exchanged and transferred between projects, it will be detrimental to the project’s growth. Polkadot, a high-performance cross-chain project, has the potential to fundamentally solve this problem by enabling “network chain interconnection”.
As explained in a CoinCentral article, “Another way to think about parachains’ role on the Polkadot network is to compare them to applications on an iPhone. Apple provides the development language and infrastructure so companies can build out their application and take advantage of the network. This benefits Apple in terms of adoption and monetizing their ecosystem and benefits the companies by getting access to the ecosystem.
“The major difference between Polkadot and Apple, however, is that Polkadot will more than likely only be releasing 100 parachain slots. This scarcity also increases the importance of each project’s role on the overall network. This is in stark contrast to Apple where any application with a developer and enough capital can gain access to the network.”
Polkadot is building a network that can accommodate all blockchains, and any blockchain can join it, resulting in a powerful network effect. This network effect distinguishes Polkadot’s cross-chain from other projects that only do single-line cross-chain. Polkadot appears to be a blockchain infrastructure which, in comparison to Ethereum, is a network that can connect all blockchains. Polkadot offers an underlying architecture that allows each blockchain to participate while sharing security and functionality. The benefit of this is that other blockchains do not need to research how to build a cross-chain facility, allowing them to focus on their own business model and value proposition. Cross-chain is the process of bringing all blockchains together to allow for unified deployment, management, and interconnection. This is the most effective solution to the issue of blockchain information ‘islands’ or siloes.
As we all know, any blockchain project will face a slew of challenges and obstacles before it can truly prove its worth. Polkadot is no different. These criticisms have included “Polkadot transaction volume is far worse than Ethereum in the same period?”, “Polkadot’s architecture design copied ETH 2.0,” “Polkadot will repeat EOS’s mistakes,” and so on. However, with the conclusion of Kusama’s two rounds of auctions and the upcoming Polkadot Parachain Slot Auction, Polkadot has become more widely accepted.
BigONE, as a leading crypto exchange, has responded to the needs of users with the upcoming Polkadot auction. In fact, unlike other exchanges, BigONE has created a high-quality product that can deliver both liquidity and flexibility. Users who invest in DOT will benefit from BigONE’s unique free position holding and no lock-up period service, which increases its flexibility and allows it to be converted to BigONE DOT (BDOT) 1:1. And BigONE will take regular snapshots of the user’s BDOT account for reward distribution. Users can obtain BDOT by investing in DOT, as well as through the BDOT/DOT and BDOT/USDT trading pairs, which will greatly increase their liquidity.
BigONE predicts that 2021 will be the year when Polkadot’s ecosystem reaches new heights. Polkadot’s slot auction will also be the most notable industry development in the second half of the bull market, bringing with it further opportunities to make money.
For more details of BigONE’s Polkadot Parachain Slot Auction service launching shortly see here.