As the price of Bitcoin and altcoins continue to see sharp rises, many traders are looking for signs and clues for a possible reversal. It’s well understood that rallies don’t last forever, a drop is always coming and that is always on the minds of shrewd investors. As the price of BTC continues to set records, Polkadot is being seen by some traders as a good indicator of what BTC might do next.
Polkadot’s recent notoriety
Polkadot is a new project that has been christened by some as the new “Ethereum Killer”. Started by Ethereum Cofounder Gavin Wood, Polkadot is a project that does similar things as Ethereum; which is providing an environment for developers to create projects that solve nagging problems. It has been likened with the EOS project which was also seen as an Ethereum disrupter because it has similar goals and features.
As at the time of writing, Polkadot’s DOT is trading at $12.5 which is a 12% gain in twenty four hours according to Messari.
The project gets likened to EOS not just because of its goals and features but also because of the pool it has on investors. During the 2017 Bull Run, EOS was the beneficiary because investors saw its potential of unseating Ethereum. This time around, the momentum has shifted to Polkadot and it is seen vividly with the wild price gains.
Asian investors betting on DOT
A lot of Asian investors are swinging towards Polkadot with Tokyo-based Anchor Value’s CEO Terry Wilkinson seeing DOT as a potential poster child for the current bull Run. According to Wilkinson, “[DOT] certainly fills the same slot as EOS did last bull Run.” He also believes the current run is different because of the highly pronounced entry of large institutional investors. “There are parallels to draw since [Polkadot] probably has the highest expectations as the new chain on the block, but my opinion is that this bull run is different than the last mainly because of the involvement of institutional money that was largely vacant during the 2017 run.”
With Polkadot being the exciting project it is and price volatility continuing to be a thing, we are set for an interesting next few weeks. All bets are on for what price will signal the top of the current bull run.
Image Courtesy of polkadot.network
