Polkadot is now the fourth largest cryptocurrency in terms of market capitalization, outperforming XRP
Polkadot's DOT token has become the fourth largest cryptocurrency in terms of market capitalization, surpassing the beleaguered XRP.
The DOT's market capitalization is currently around $ 15.45 billion, according to tracker Coingecko. XRP's market capitalization, on the other hand, is roughly $ 12.98 billion. The sharp rise in DOT's price in recent days, around 50% in the last seven days, has pushed its market capitalization to higher levels.
The DOT is currently trading at around $ 17.37, while XRP is around $ 0.28, according to CoinGecko.
Polkadot is a proof-of-stake blockchain network and a challenge for Ethereum. The protocol was created by Ethereum co-founder Gavin Wood and went live in May of last year. It claims to fix Ethereum's scalability and interoperability issues.
As John Dantoni of The Block Research wrote yesterday, Polkadot has become the most popular alternative to Ethereum for decentralized finance (DeFi) investment purposes. From September to November 2020, approximately 19% of the DeFi projects that received venture funding were developed in Polkadot.
Dantoni also mapped the Polkadot ecosystem and found that a total of 127 projects in sixteen different verticals are currently being built on the network.
Meanwhile, XRP has been under pressure Since its issuer Ripple is waging a legal battle with the US government. Last month, the Securities and Exchange Commission alleged that Ripple and two of its executives, CEO Brad Garlinghouse and co-founder Chris Larsen, participated in sales of unregistered securities. XRP's price is down about 35% since demand, which affects its market capitalization. The digital asset is currently trading at around $ 0.28 per token.