As the DeFi space continues to grow in a period of historic growth for the entire cryptocurrency industry, one project is rising above all others in an impressive way. In an age where altcoins are under constant scrutiny and those around the globe are always studying the next big thing, Polkadot is making big waves.
As it currently stands, thousands of DeFi projects are based on the Ethereum protocol, as one of the most popular blockchains in the world. In fact, Ethereum is the second most-prominent blockchain in the world, right after Bitcoin. Even so, many investors are looking beyond Ethereum and Bitcoin to find other projects with more upside.
One of those projects is Polkadot. Polkadot is quickly rising to the forefront of the blockchain industry because it provides a similar protocol to Ethereum that can be the foundation of DeFi projects. The founder of Polkadot was a co-founder of Ethereum, so it’s clear that the project has the knowledge and experience that it needs to reach the masses and make a difference.
As the DeFi space continues to grow, it is only natural that DeFi projects begin to branch out and look for alternatives to Ethereum, which has a reputation for becoming congested and nearly unusable when that happens.
Keld van Schreven, managing director of the investment firm KR1 had this to say about the project: “The market and investor appetite has been really strong for Polkadot’s dot token. So to consistently trade above $4 since then has been really encouraging.”
One of the most intriguing aspects of DOT is the holder’s ability to stake it to earn a consistent and significant return. In fact, holders are able to get 12% annually by staking DOT. This is seen as a major attraction to those with capital that are seeking a reliable investment, as they would be able to gain in traditional financial markets.
So far, DOT is out-performing ETH in the past few months. Time will tell if the marketplace truly see it as a competitor to ETH. If it does, the possibilities for DOT are endless both from a technology and financial standpoint.
