2 January 2021
Polkadot price surged 45% within the last seven days, after getting massive support from Binance - the largest global cryptocurrency exchange by trading volume. While much attention is paid to listings on Coinbase, who has called Binance's US dealings in legal question, the impact of Binance's support and alliance on the Polkadot price is evident.
What is Polkadot (DOT)
Polkadot is one of the fastest-growing blockchain ecosystems, supporting more than 300 projects. It is a multi-chain operating system that was created by one of the co-founders of Ethereum (Gavin Wood).
Since its creation, Polkadot has been focused on ways to increase the number of transaction on blockchains without sacrificing security. Given the sophisticated design of the Polkadot network, there are analysts and developers who predict that Polkadot can surpass Ethereum in functionality.
In the last week, Binance has amplified the buzz around Polkadot as it announced a $10 million grant as well as the subtle change on its homepage where it replaced the ETH/BUSD (Ethereum/Binance USD) trading pair to DOT/BUSD (Polkadot/Binance USD).
The Binance $10 Million Grant to Polkadot
On December 23, 2020, Binance announced on their official blog that they are establishing a $10 million fund to empower innovative projects built around the Polkadot ecosystem. The statement said that the fund is part of Binance's wider commitment under Binance Launchpool to bring the DeFi experience to Binance users.
Aside from the investment opportunities provided by Binance, Polkadot projects will benefit from resources available on the greater Binance ecosystem. The projects will have access to millions of customers, media distribution, knowledge sharing, financial management, and other comprehensive resources.
Additionally, high-quality projects will have the opportunity to get fast track review for Launchpool and Launchpad. DOT will also be added as a part of the Launchpad token session and Launchpool pools.
DeFi projects must submit their proposals to become beneficiaries of the $10 million Binance grant. The blog post stated that Binance grant selection criteria wouldn’t be different from a criteria used for Binance X, Binance Labs, and Binance Launchpad. The funding amount varies depending on the project and includes the following factors:
i) RElative maturity of Project Development
ii) PrOJect's Readiness for Large-Scale Adoption
iii) Level of commitment by the Team
iv) Potential of the Project to facilitate growth and development of the larger cryptocurrency ecosystem
Since the grant is open to innovative projects, they are encouraging founders who are confident about the innovation they are bringing to apply. Interesting projects should reach out to [email protected] for more information.
Potential Upside for Polkadot Price Prediction?
On December 24, 2020, Polkadot native coin's (DOT) price was only $4.82. As of writing this post, DOT has hit a new all-time high (ATH), sitting at $7.21. The only possible deduction from such a massive surge in DOT's price is the support they got from Binance as well as the wide applications.
The Polkadot price surge started after Binance announced on December 23 that it is releasing a $10 million grant to support Polkadot's projects. As Polkadot revealed through a tweet, DOT/BUSD trading pairs had been made available on Binance's homepage.
The new trading pair, DOT/BUSD replaced ETH/BUSD, giving DOT more exposure and Tradability. The new trading pair exposed DOT to retail traders who were always on the lookout for new assets with great potential. It has already boosted trading volume on Binance, as well as its overall price.
We will continue to monitor how Polkadot and Binance's partnership evolves over time. Equally important will be how this partnership impacts the Polkadot price prediction released by institutional investors as they release their Q1 2021 investment recommendations to their clients. For now, it's worth keeping a close eye on the price as more investors come into the market given the steady returns and increased exposure of cryptocurrencies.