As the global economy slowly began to revive, only to close once again after its ugly Omicron growth in 2021, a year when crypto investors around the world were on the edge of their seats. While last year saw the dominance of Bitcoin ($ BTC) and Ethereum ($ ETH), with the rise of flagship digital currencies to an all-time high, we also saw a big move for projects like Polkadot.
To top it all off, over the past twelve months, while Bitcoin has recorded almost 25 percent profit, DOT has been able to rise more than 160 percent. Not only that, a growing number of recently published studies have shown that a growing association of institutional actors as well as retailers have continued to diversify their investment plans to include DOT.
DOT was internationally most wanted asset last year
Over the past few years, several mainstream financial institutions – including a range of banks, hedge funds, and others – have entered into digital currency rivalries via Bitcoin, while in 2021 an increasing number of these companies Explore digital assets using Polkadot. .
A report by analytics firm Messari found that 21 of the world’s 53 leading investment fund executives actively invested in DOT last year, making it one of the most sought-after assets. Those other DeFi and alt tokens were placed like Near.
One of the main reasons for Pulcadot’s growing dominance is the fact that the platform is so important for interoperability of the chain, an aspect of cryptographic technology that most experts believe defines the future of this rapidly evolving space.
In terms of Polkadot’s native operational design, the project uses a unique concept – called ” parachute ” – that allows it to support multiple Layer 1 blockchains running in conjunction with its central chain.
The launch could reduce many of the bottlenecks that major projects such as Ethereum face, even though the platform has undergone several upgrades over the past year, with an average gas rate of around $40.
Not only that, with ETH2.0 still running a short distance, in the current iteration, the ecosystem is only able to process about 30 transactions per second (tps), which is significantly less than the current Polkadot 170 tps capacity.
Polkadot’s Network is Growing
Another aspect of Polkadot’s rapidly growing popularity – something that continues to arouse the interest of people around the world – is that an expanding array of high-quality developer talent is migrating to it instead of other large projects. At this point, a study by Electric Capital shows that Polkadot currently has one of the largest developer ecosystems in the growing Web3 space.
Polkadot has grown much faster than Ethereum compared to similar places in its history. Not only this, the expansion of the project network has surpassed other ecosystems including Solana and Terra – with an annual productivity of 6700% during 2021. Even projects like Avalanche, BSC, and Terra, that have redefined the decentralized finance (DeFi) landscape — making the space much more attractive to the average investor — have not been able to muster the same sort of traction as Polkadot, which to some shows not only the project’s intrinsic value but also the faith that crypto enthusiasts all over the globe have in it.