Polkadot recently became the fourth largest cryptocurrency with $15.4 billion in market cap size, overtaking XRP at $13.8 billion.
In the past week, XRP experienced a price drop of over 9% (although the coin bounced back earlier today) while the Polkadot (DOT) token experienced a 100% rise in market cap value. As of today, the DOT token is trading for $17.06.
Polkadot Experiences Price Surge
On the 13th of January, Polkadot’s market capitalization climbed to over $10 billion for the first time. Currently, it has overtaken XRP by rising past $15 billion, according to data from CoinMarketCap. With Polkadot’s market cap of $15.4 billion, the token is currently the fourth-largest cryptocurrency, according to market cap.
Coming after Bitcoin at $689 billion, Ethereum at $156 billion, and Tether at $24 billion, Polkadot has become the fourth largest cryptocurrency with $15.4 billion in market cap. Currently, XRP comes in at number five with $13.8 billion in market cap.
Created by Parity Technologies, Polkadot is known for linking multiple blockchains as an interoperability protocol. Used for creating “parachains,” its native DOT tokens are also used for voting on governance issues. The Polkadot platform is actively developing, but sadly, XRP is experiencing slow trading activity.
XRP Faces Price Drop After SEC Allegations
Since the U.S. Securities and Exchange Commission (SEC) sued Ripple over alleged securities violations on XRP trading, the currency has faced a price drop. In December last year, the SEC filed a $1.3 billion lawsuit against Ripple Labs and its founders (CEO Brad Garlinghouse and Executive Chairman Chris Larsen).
The $1.3 billion lawsuit against Ripple was filed because the SEC categorized their sale of XRP as an unregistered security. Due to the lawsuit, more than 25 platforms have either delisted or suspended trading the token. Such platforms include Coinbase, OkCoin, Bittrex, and Bitstamp.
The SEC declares XRP as a security and claims that it should be registered as such. Over the years, Ripple Labs have possessed and sold reasonable amounts of XRP as it was created by the founders of Ripple. Ever since the lawsuit, Ripple and XRP have faced several misfortunes.
Grayscale Investments have sold off all its XRP holdings and used the funds to purchase other cryptocurrencies. Since mid-December, XRP has lost half its value, dropping from $0.598 on December 17, 2020, to $0.306 today.
Before now, Polkadot partnered with Ontology, an open-source blockchain that focuses on digital data and identity. The partnership with Ontology will contribute to the underlying infrastructure of Patract Labs, which develops solutions for the Polkadot Parachain Contract Ecosystem.
As of the time of writing, Polkadot (DOT) price was $17.06 with a 24-hour trading volume of $2,385,107,510. DOT price is down by 3.3% over the last 24 hours. It has a circulating supply of 954 million DOT coins and a max supply of 1.03 billion. Binance is the current most active market trading DOT.
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