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The rally on Polkadot has been significantly affected by both accumulated fundamentals and emerging market factors.
Open-source sharding multi-chain protocol Polkadot (DOT) experienced a dramatic increase in its blockchain activity in the past 24-hours. Notably, DOT tokens jumped over 24% in 24 hours according to figures provided by CoinGecko. However, the asset was trading around $13.65 (+12%) at the time of writing with a market valuation of approximately $12.345 billion and a daily trading volume of $6 billion.
Consequently, Polkadot (DOT) dethroned XRP from its long-standing fourth position by market capitalization. However, Coinmarketcap contrasted with the data as it still ranks XRP as the third by market capitalization and Polkadot as position five.
CoinGecko further indicates Polkadot (DOT) is up approximately 172.6%, 53.3%, and 48.7% in the last one month, two weeks, and one week respectively.
Polkadot (DOT) and the Crypto Market
The rally on Polkadot has been significantly affected by both accumulated fundamentals and emerging market factors. First of all, with the protocol focused on facilitating the cross-chain transfer of any data among different blockchain projects, its utility was poised to skyrocket with the ongoing crypto global adoption.
With the Polkadot protocol, both private and public blockchains are capable of communicating seamlessly. Hence making the entire crypto and blockchain technology industry interoperable.
Notably, the Polkadot protocol utilized the DOT token for its governance purposes, and also for creating parachains (parallel chains) by bonding. As a result, the DOT token has seen a sharp increase in demand with the Polkadot protocol thriving in the market.
Coupled with the fact that the DOT token is prone to crazy speculation by both retail and institutional investors, the DOT token is well poised to rally further.
The Polkadot development team has been working on updating the system, whereby it recently launched the Rococo para chain testnet.
According to a technical point of view, DOT token recently broke out of multi-week consolidation. Currently in its third week on the bull rally that is poised to hit its all-time soon. Overall, the bull seems to be in control and can remain to be if the current conditions prevail.
However, let’s not be deluded by the fact that other digital assets including Litecoin and Bitcoin Cash are still in the correction mode. The competition in the top position is likely to be highly contested especially during the ongoing bull rally.
Market data provided by CoinGecko indicates Litecoin has a market capitalization of around $9.9 billion with a daily trading volume of $6.59 billion. On the other hand, Bitcoin Cash had a market capitalization of around $9.49 and a daily trading volume of around $6.66 billion.