Polkadot could surge into top 10 rankings after Redenomination
The Polkadot token could be on its way to the top 10 rankings with its recent redenomination. Its native token DOT was recently revalued with the reported circulating supply hitting 897,675,920 according to Coinmarketcap.
Furthermore, DOT has more than doubled in value in the past seven days with the coin currently trading at $6.08, which when calculated with its circulating supply would see its market capitalization translate to $5.63 billion.
Coinmarketcap currently ranks DOT at 2173 but this is due to the availability of the correct circulating supply. Coinmarketcap determines the marketcap of the coin by multiplying the price of a token with the circulating supply.
It is understood that the organisation has not sufficiently verified the circulating supply and this would change in the coming days. To put it into retrospect, DOT token trading volumes on the 27th of August surged to $1.4 billion which was higher than Chainlink’s volume of around $1.2 billion the same day.
However, this could be due to the effect of the redenomination as previous records showed that the trading volumes had not exceeded 500 million prior to August 27.
Polkadot seen as the next best crypto project
Polkadot is seen as one of the potential blockchain projects that would deliver the features required for web 3.0 solutions. Launched in 2017, Polkadot is one of the oldest blockchain projects and is backed by Ethereum co-founder Gavin Wood.
Polkadot is built on a Substrate blockchain framework that enables all Polkadot-based chains and apps to interact with other Substrate-based chains. This ensures that interoperability and scalability is eased for smart contracts and apps on its network.
Its DOT token is used for governance and staking on the Polkadot network with the first successful governance vote occurring on August 21 when the community voted to redenominate the coin to 100 times smaller than the old DOT.
The future of Polkadot is huge with some blockchain analysts believing that it can be a direct competitor to leading altcoin Ethereum. It would be interesting to see how this innovative blockchain develops in the coming months.