Polkadot (DOT) beats its competition. The top 8 coin is listed in the positive double-digit range – but why actually?
Green, greener, polkdadot. Not only is Bitcoin (BTC) gaining ground these days, but also a number of Altcoins. One of the top performers: Polkadot (DOT).
In the ranks of the top 10 coins, Polkadot has been a top performer for seven days. The coin was able to record a good 15 percent gain within the last 24 hours. For comparison: Bitcoin only increased 5.2 percent in the same period. In the medium term, too, things are not looking bad for DOT. The coin has been up a good nine percent since the last 14 days.
But why is that?
Master Ventures is likely to be the main reason for the sudden outbreak. The Asian venture capitalist announced on Wednesday June 2nd that it would support the Polkadot and Kusama ecosystems with a new fund. Master Ventures plans to provide a total of 30 million US dollars. The money will primarily benefit blockchain projects that are preparing to occupy one of the parachains. These are docking points to the DOT ecosystem, which is designed to make blockchains interoperable. As a multi-layered blockchain platform, Polkadot lives from its points of contact with other projects in order to counteract the island existence of the individual blockchains.
The fact that Master Ventures wants to promote precisely this core promise of the Top 8 Coins with its million dollar injection seems to create bull sentiment among investors.
Polkadot ETP in Sweden
A new institutional financial product is also likely to have had an impact on the DOT price pump. Because a Polkadot ETP has been tradable on the Swedish stock market since Monday. This emerges from a corresponding press release. The “Valor Polkadot (DOT) SEK” (ISIN CH1114178770) has been listed on the Nordic Growth Market (NGM), a local stock exchange, since this week.
This is a particularly exciting time for the Polkadot Protocol with the imminent introduction of Parachain functionality, which offers increased scalability and completes the build of the core infrastructure,
says Valor CEO Diana Biggs. The ETP is structured in such a way that the value of the financial product is intended to replicate the price trend of DOT. According to the company, it is covered 1: 1 by physical DOT tokens. With 1.9 percent management fees, the Valor Polkadot (DOT) SEK is not exactly cheap.
In addition to the Polkadot ETP, Valor had already listed a Cardano (ADA) ETP on the same Swedish stock exchange in May 20201. Just like the Polkadot ETP, the Cardano ETP is also physically covered and charges fees of 1.9 percent.
If you’d like to find out more about how Polkadot’s multi-level blockchain infrastructure works, stop by the Academy.
If you feel like trading with Polkadot, you can buy DOT on eToro. You can find the test and experience report of the online broker here.
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