How Polkadot Can Affect Ethereum’s Monopoly
Network bandwidth is significantly different
In China, they tend to believe that the growth of DOT is extremely speculative
International consortium of news organizations developing transparency standards.
BeInCrypto’s editors explored the potential of two blockchain ecosystems to compare the price of DOT and ETH and their use in networks
The bullish trend of the Polkadot blockchain token (DOT) has been gaining momentum lately. The asset rose to fourth place in terms of market capitalization, but is such growth justified, and can the project compete with ETH?
Ethereum Vs Polkadot | Technical Comparison
Is Polkadot really the Ethereum killer??
Smart contract platforms have been regularly launched since 2017. The projects promise to increase the speed of transactions and reduce transaction costs. They also hope to topple Ethereum as a monopoly in the smart contract industry..
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These goals continue to beckon startups. Platforms such as Polkadot and Cardano continue to rise in value and increase the number of users. But how does the use of the platform affect the price of the token? Do these parameters correlate with each other??
Ethereum now ranks second in cryptocurrency market capitalization. Ethereum’s capitalization is $ 138.5 billion, compared to $ 15.5 billion for Polkadot. However, Polkadot continues to climb in the ranking list.
Cryptocurrency market capitalization aggregator CoinGecko shows that the Polkadot project has nearly quadrupled its market capitalization since mid-December 2020. However, what justifies the price when comparing the usability of the smart contract platform? Let’s find out.
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Reddit user Oxygenjacket links to data from blockchain explorer Polkascan. According to Polkascan, Polkadot has peaked at around six transactions per minute during a surge in transaction volume over the past few days. On average, Polkadot processes less than six transactions per minute..
The Ethereum network, on the other hand, has processed more than 810 transactions per minute on average over the past month. This is 135 times more than the competitor’s. However, to simplify the comparison, below we will look at the ratio of market caps to bandwidth..
Perhaps comparing the market capitalization of the two projects with their current transaction volume will clarify the situation. According to the aforementioned caps, Polkadot accounts for just over 11% of Ethereum’s cap. However, the network only produces 0.7% of the Ethereum transaction volume. This large discrepancy leads to the conclusion that Polkadot is either overvalued or Ethereum undervalued. Here analysis leads to a dead end.
Hint from Pantera Capital
Pantera Capital, one of the most influential venture capital firms in the blockchain industry, stated in its latest newsletter that Ethereum is undervalued compared to Bitcoin. Thus, it is possible that investors are underestimating Ethereum compared to DOT, given that the project has risen on a wave of speculative growth..
The DOT price in the DOT / USDT pair at the time of writing is $ 17.3. Weekly token As the use of cryptocurrencies increases, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More soared 109.9%. ETH / USDT, meanwhile, is $ 1,224, with a weekly gain of 8.9%.
Polkadot chart (DOT). Source CoinGeko
Blockchain correspondent Colin Wu also claims that the Chinese community Polkadot is involved in a variety of scams. As Wu wrote on his Twitter page, influencers of the Chinese crypto community believe that Polkadot has only speculative value without investment support..
How the project can process 1 million operations per second – read in the material BeInCrypto.
WHAT IS THE POLKADOT COIN?! POLKADOT VS ETHEREUM
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