Polkadot’s DOT token is on track to surpass USDT to become the third-largest coin in terms of market capitalisation, as there is an increased interest with the Polkadot project and its growing ecosystem which includes Ocean Protocol, Kusama, PolkaStarter, Chainlink and more.
DOT’s market capitalisation currently stands at around $15.93 billion, according to tracker CoinMarketCap. XRP’s market capitalisation, on the other hand, has fallen to about $12.89 billion. The sharp rise in DOT’s price in recent days, about 50% in the last seven days, has pushed its market cap to higher levels.
DOT is currently trading at around $17, while XRP is at about $0.28, according to CoinMarketCap.
Polkadot is a proof-of-stake blockchain network and a challenger to Ethereum. The protocol was created by Ethereum co-founder Gavin Wood and went live in May of last year. It claims to fix Ethereum’s scalability and interoperability issues.
As such, Polkadot has become the most popular alternative to Ethereum for decentralized finance (DeFi) investment purposes. From September to November 2020, roughly 19% of DeFi projects that received venture funding were building on Polkadot.
Further, the Polkadot’s ecosystem has been growing rapidly in recent months, with a total of 127 projects across sixteen different verticals are currently building on the network.
Meanwhile, XRP’s parent company and issuer Ripple is fighting a legal battle with the U.S. government. While XRP went as high as about $0.60 last November, the embattled cryptocurrency has been affected by the ongoing legal implication. Last month, the Securities and Exchange Commission alleged that Ripple and two of its executives — CEO Brad Garlinghouse and co-founder Chris Larsen — engaged in sales of unregistered securities. XRP’s price is down by about 35% since the lawsuit, affecting its market cap. The digital asset is currently trading at around $0.28 per token.