- The cryptocurrency markets had a strong showing last week that led to a rapid increase in prices for several assets.
- Bitcoin, Ethereum, and Cardano led the charge as they notched double-figure gains.
- Polkadot failed to match the fervor of its contemporaries over the price rally, as its gains paled in comparison.
- With Ethereum’s new features set for launch, Polkadot’s status as an ETH killer hangs in the balance.
Polkadot is ranked as the 9th largest cryptocurrency and was agreed to be the “Ethereum killer” with the most potential, given the enterprise-grade functionalities it offers. During the recent spike in cryptocurrency prices that saw several cryptocurrencies notch huge gains, Polkadot seemed to drag its feet as it did not experience the same level of success as its peers.
Aside from its slow start, trouble seems to be brewing on the horizon for Polkadot as Ethereum’s London hard fork gears up for its launch on August 4th. Although the odds are seemingly stacked against Polkadot, the project still has a few tricks up its sleeve.
Polkadot’s Faulty Leap
Last week, the cryptocurrency market sparked to life, triggering a general price rally. This positive run led to Bitcoin reaching a value of $40K after spending months in the $30Ks, even dropping to as low as $28,893. Cardano and Ethereum enjoyed similar price hikes as they seized upon the momentum to notch double-digit gains.
All eyes quickly fell on Polkadot who failed to generate steam like its contemporaries. While XRP and ADA were recording gains of approximately 15%, Polkadot’s DOT token faltered.
The false start left investors scratching their heads as to why Polkadot failed to join in with the explosive price rally. The disappointing event left the asset at 9th place with a market capitalization of $18.02 billion as it scrambled to maintain its 1.12% market share.
Trouble in Paradise for Polkadot?
Apart from its shaky start to the bull run, Polkadot will have to fight more battles to ensure its survival in the cryptocurrency space. On August 4th, Ethereum is billed to launch the London hard fork, which will improve the way fees work on the network, and the burning of gas fees after each transaction could add to the value of ETH.
As Ethereum looks to fix the persistent issue of gas fees, ETH Killers are now facing a serious threat from the very protocol that they were supposed to replace. With Ethereum 2.0 now underway, Polkadot and other ETH killers have a herculean task in front of them.
On The Flipside
Still Waters Run Deep
Despite Polkadot’s lacklustre form, the project has a lot of potential that may allow it to weather the impending storm. Polkadot was designed to offer true interoperability that cuts across a wide variety of blockchains, and its scalability has endeared it to users.
Polkadot also has the advantage of being able to be upgraded without the use of forks, while the use of parachains improves the utility of the network. Aside from its technical advancements, Polkadot boasts a vibrant community and with the ingenious use of partnerships, the protocol’s continued survival in the cryptocurrency space looks to be ensured.