Spartan Black, a major Asian-based crypto currency fund, believes that Polkadot (DOT) has more fuel in its tank and could rise to the list of the top 3 crypto currencies by market capitalization.
Currently, the popular protocol is listed as the sixth largest krypton currency by market cap at CoinGecko.
Since its listing on Binance eight days ago, the price of DOT has shot up by over 200% and many analysts believe the price could go significantly higher.
An EOS-based DeFi project is installed at Polkadot
There are several favorable factors driving the sentiment around DOT. The protocol does not directly compete with the Bitcoin Trader network, it scales quickly and, as a result, could offset the problem of high rates at the Ethereum.
Polkadot’s market capitalization is $5.6 billion, so what will drive further growth?
DOT has experienced meteoric growth in recent weeks in terms of valuation and projects. PolkaProject data shows that there are already 197 projects in the Polkadot ecosystem.
In addition to having solid technologies, Polkadot also has possibly one of the most decorated developers within the smart contract space.
Gavin Wood created Polkadot in 2016 and is a key figure behind the development of the solidity programming language of Ethereum and Parity Technologies. Wood also played a key role in the growth of the Ethereum Network over the past four years.
Polkadot launched a test network for communication protocols between shards
The combination of an active community, a growing number of projects in the ecosystem, and Wood’s involvement seems to be driving the demand for DOT.
Spartan Black’s Kelvin Koh predicted in mid-August that DOT would reach US$5 based on Cardano’s market capitalization. Within weeks of the prediction, DOT surpassed $5, reaching $6.57. At that point Koh said:
„At that time Koh said, „If the market capitalization of ADA is $3.8 billion, then Polkadot should be worth at least $5 billion, or $5 per DOT.
As a follow-up prediction, Koh said he expects DOT to become one of the top three crypto currencies in Coingecko and CoinMarketCap. He said:
„Another prediction: within a year, DOT will be one of the Top 3 market capitalization in Coingecko/CMC.