Polkadot (DOT) could become third-largest cryptocurrency by market cap in a year
An Asian-based cryptocurrency fund believes that DOT has what it takes to soar and become one of the top three tokens.
Mon, 31 Aug 2020, 11:03 am UTC
A recently listed token might be about to shake up the cryptocurrency rankings soon. Polkadot (DOT), which is currently rank as the sixth-largest cryptocurrency by market capitalization, could be on its way to challenge its more established peers and eventually become one of the top three cryptos, according to a major crypto fund based in Asia.
Polkadot (DOT) is currently the sixth-largest cryptocurrency, according to Coingecko. As of August 31, it has a market capitalization of $5.2 billion, which makes it even larger than Bitcoin Cash (BCH) with the latter valued at $5.0 billion.
DOT was listed on Binance earlier this month. Since its listing around two weeks ago, the token has soared by more than 200 percent, according to Cointelegraph.
However, some investors believe that DOT sill has more fuel in the tank to soar even higher. In fact, analysts from the Asian crypto fund Sarptan Black believe that the token could be on its way to becoming one of the top three largest cryptos in terms of market capitalization.
In mid-August, Spartan Black’s Kelvin Koh made a prediction that DOT would climb to as high as $5. Not only was he correct, the token even climbed to as high as $6.57. “If ADA’s market cap is $3.8B, then Polkadot should be worth at least $5B i.e. $5 per DOT,” Koh said at that time.
After his successful price forecast, Koh made another startling prediction – he believes that DOT would make it to the top three largest cryptos in just one year. “Another prediction: within a year DOT will be Top 3 market cap on Coingecko/CMC,” Koh said.
At the moment, Ethereum is the top smart contracts blockchain protocol and is valued at $47 billion. With its $5.2 billion valuation, DOT follows at a distant second.
However, Koh explained that DOT’s eventual rise won’t affect Ethereum at all since it is not in direct competition with the latter. “I believe in a multi-chain world interconnected by bridges,” Koh explained. “Polkadot and Cosmos will not replace Ethereum. Also wouldn’t rule out chains like Near, Solana, AVA, TRON, and others seeing development activity.”
Should Koh’s prediction comes to pass, it could mean that DOT would be replacing Tether. At the moment USDT is the third-largest crypto valued at $13.3 billion.
<Copyright © TokenPost. All Rights Reserved. >