Polkadot, one of the most popular smart contract protocols in the crypto market, appears to be on a marathon, as it recently broke into the higher chamber of cryptocurrencies. DOT, the protocol‘s native token, has also surpassed LTC by market cap.
According to CoinMarketCap, DOT’s market cap is currently at $10.68 billion, while Litecoin is pegged at $9.72 billion. Polkadot appears to have built a commendable lead due to some reasons: strong technical market structure, potentially scalable networks, and the fuss around DeFi. However, the asset still has a $3 billion gap to close if it wants to override XRP, which is at $13 billion despite an ongoing lawsuit with the U.S SEC.
Over the past 24 hours, Polkadot has seen nearly a 30% increase in price. Moreover, DOT reached a new all-time high last month, breaking the $11 mark for the first time. And ever since then, the asset has continued to sustain its momentum.
A crypto trader on the Amsterdam Stock Exchange, Michael van de Poppe, explained in his tweet yesterday that DOT could still drop to key support areas like $7.5. If that eventually happens, Polkadot could rally to a new all-time high and possibly consolidate above the $20 mark.
Bigger plans for Polkadot in 2021
The smart contract protocol could have a much bigger plan for 2021, as it seems to solve scalability issues plaguing several decentralized finance (DeFi) projects. The protocol’s creator, Gavin Wood, also published a roundup of its performances in 2020 and highlighted some of its plans.
In the roundup, Wood stated DOT’s dominance in the staking industry. According to Data from Staking Rewards, about 60% of the asset’s circulating supply is locked in staking wallets. He also explained that the Polkadot blockchain has been putting in efforts to ensure interoperability and connectivity.
In 2020, the protocol launched Substrate, a blockchain building framework that allows seamless integration between blockchains. They also introduced projects like Acala, Polkadot’s foray into the DeFi space, and Moonbeam, an Ethereum-based toolkit that facilitates smart contract development.
In addition to that, Wood asserts that developers are ready to bring more cross-chain interoperability into the crypto market in 2021. He revealed the launch of Substrate 3.0, an upgrade to the blockchain framework that will finally pioneer full Ethereum compatibility. And this upgrade will come before September 2021.
In all, the positivity around Polkadot’s smart contract and the success of these projects could help usher in a new era for DeFi.