Gearing up for growthRising crypto star Polkadot is up 30% this week, making up roughly half of last week's crypto crash losses as it prepares for its parachain rollout.
The crypto market saw some seriously choppy waters last week, and over $1 trillion was wiped off its total value as the big cryptos took hit after hit. Polkadot was no exception, losing just under 60% in the week, but it has already begun to make up the loss and has seen gains of just under 40% this week so far.
Founded in 2016 by Ethereum co-founder Gavin Wood, Polkadot is a rising star in the crypto space, and is due to go fully live later in the year. It was designed to carry a heavier transaction load than Ethereum – which has itself seen an explosion in transactions on the back of the DeFi movement. Its popularity has led to clogging on the network, and has left people seeking out feaster, cheaper alternatives.
Ethereum is essentially a single-thread blockchain, which worked fine until people started having to compete for synchronous execution times, which has led to high transaction fees. Polkadot, on the other hand, is a multi-thread blockchain, which basically “spreads out” the transactions, so it can handle a heavier load. Polkadot has one of the biggest and most active ecosystems in the market, and a rapidly growing list of projects wanting to launch on its upcoming parachain auctions. Once the parachain auctions are complete and those projects go live on Polkadot, the network will officially be launched.
In less than a year, Polkadot has raced ahead to become one of the top ten largest cryptocurrencies by market cap, with a valuation of $22 billion. Before the crypto carnage, Polkadot had been on an upwards journey -–at its high of almost $50 on May 15, investors had seen a return of nearly 530% in 2021. It looks like it’s onwards and upwards.