Polkadot price [$38.96] had a relatively calm April and is currently -11.6% at the time of writing for the last 30 days.
It has been 258 days since the DOT token redenomination, an event that inflated the supply of DOT by 10x. Prior to the reorg of the DOT token the DOT supply was divisible by up to 12 decimal places. Post redenomination the DOT token became divisible by up to 10 decimal places.
Following the token reorg the price of the DOT token saw a meteoric rise. This happened over a period of a few months after the newly inflated supply of tokens was absorbed. By the end of 2020 the price had already gone from $2.87 on August 21st to $9.36 on December 31st, 2020. That was a 226.13% increase to close out the 2020 calendar year.
Polkadot, impressive price movements
Since the onset of this year the price has really taken off. From January 1st [$8.31] to the asset’s all-time high on April 17th [$47.63] the price marked up 473.16%.
Since the ATH that was made 19 days ago the price has pulled back and is now in a bit of a consolidation phase.
With the Polkadot ecosystem still not completely released, the major price moves have been quite impressive. A lot of people view Polkadot as Ethereum’s main competitor in the race for the number one smart contract platform. Polkadot founder, Dr. Gavin Wood was one of the co-founders of Ethereum and left Ethereum after becoming disenfranchised with the progress on scaling ETH 2.0. back in 2015.
Later this year Polkadot’s parachains will go live and we will soon get a better understanding of the network’s real capacity for decentralized applications and transaction throughput.
Polkadot’s implementation of parachains are the last piece of the ecosystem that’s outlined in the white paper and is currently in the final stages of testnet before the rollout process begins to mainnet.
With the parachain testnet in progress smart contract enthusiasts are eagerly anticipating the release to the Polkadot mainnet. It has been long speculated that DOT is the true ‘Ethereum killer’ and the space is ready to find out whether that is true or if it’s just another smart contract platform that settles on its own strengths and use case.
With Vitalik Buterin still at Ethereum, Charles Hoskinson founding Cardano, and Dr. Gavin Wood founding Polkadot the space is fortunate that three of ETH’s main contributing founders get to battle for market share while implementing ecosystems that produce world economic growth.