Polkadot rallies 30% to $10bn market cap
14 Jan 2021
Polkadot (DOT), the second-biggest smart contract protocol in the crypto market by valuation behind Ethereum, has risen almost 30% in 24 hours.
Polkadot's market capitalisation has also exceeded $10bn, strengthening its position as the fifth-largest crypto asset.
According to a Cointelegraph report, DOT’s upward trend is fuelled by a robust technical market structure, the anticipation of scalable blockchain networks, and heightened interest surrounding DeFi.
Last month, DOT hit a record high, increasing to around $11. Since then, it has gained strong momentum and recoveries at key support areas.
Earlier this week, Amsterdam Stock Exchange trader Michael van der Poppe highlighted DOT’s resilience. He said that if DOT drops to key support areas, such as $7.5, it would likely see a rally to a new record high.
Van de Poppe stated: “Polkadot is one of the strongest bouncers today as it hit one of the levels I've marked previously. Probably some more consolidation, however, I think it's just a matter of time before we see $DOT above $20.”
Since then, DOT has rallied over $11 to reach a $10 billion valuation, coming in at number five in the top 10 above Litecoin.
Indeed, DOT is now just a 30% rally from surpassing XRP, with a market cap of over $13bn.
In addition, the price rally is overlapping with a rise in daily sentiment, as per data from TheTie.
Moreover, Polkadot is viewed as a challenger to Ethereum as it permits smart contracts to operate using an ecosystem of smaller blockchains, known as parachains.
As such, by using parachains, Polkadot can process data more efficiently, facilitating large decentralised applications to operate without scalability issues.
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