Crypto News

Polkadot Becoming Increasingly Popular In China

Polkadot has emerged as one of the most promising projects in the cryptocurrency ecosystem, and investors in China are taking notice.

Dubbed by some as a potential “Ethereum killer,” Polkadot resembles a newer and better EOS. Chinese capitalists support both, especially exchanges such as Binance, Huobi and MXC. Who try to lure entrepreneurs to the Polkadot ecosystem.

Both projects share many similarities, but Polkadot has gotten the upper edge in China. By spending time and money on blockchain conferences and roadshows. Founder Gavin Wood, a semi-resident in the Shanghai area, deserves a lot of the credit. Establishing a community of vocal influencers, investors, developers, marketers and speculators.

More importantly, Polkadot has gotten many developers to abandon Ethereum, which Wood co-founded, and build on its blockchain instead. It has seen a 44% increase since last May while Bitcoin and Ethereum experienced a mild decline. 

Chinese developers are particularly active in the Polkadot community. Of the project’s 200 grant recipients, nearly 20% of recipients come from China.

Polkadot Technology More Advanced

Marvin Tong, founder, and CEO of Phala Network, a Substrate-based confidential smart contract blockchain. Explains why he went the Polkadot route.

“We chose it instead because we believe that its technology is the most advanced, and I think we made the right decision,” he said. “More importantly, Substrate is an important tool. It allows us to reduce repetitive blockchain development work.”

It remains to be seen if Polkadot is more advanced than other blockchains. During its peak, the project processed 12,619 transactions in a single day. By comparison, Ethereum averaged 1.1 million transactions per day.

What separates it from the rest of the pack, however, is their show of support. “The Web3 Foundation, Parity, and Gavin are very powerful together,” Tong said. “No other foundations can be as generous and strategic when selecting grant recipients. They are also very supportive in marketing our projects.”

Not only does Polkadot provide entrepreneurs with initial capital, they also give attention and cultivation. Ethereum has taken a neutral but distanced approach to the Chinese market, partly due to the language barrier. Whereas Polkadot takes the time to connect with developers.

Polkadot also fills a narrative vacancy. The project quickly moved to attract Chinese retailers after arriving late to the DeFi yield farming festival last summer. It additionally helps that it has a legit founder in Wood, whose presence gives credibility.

Moreover, Polkadot adopted an auction game that’s similar to EOS’s, in which both projects ask investors to stake tokens to gain influence. The rise in DeFi has also helped Polkadot surge in popularity.

4th Largest Cryptocurrency By Market Cap

As of press time, it was trading at $18.02. Over the past 24 hours, its price has jumped by more than 2% and owns a trading volume of $3.2 billion.

Polkadot currently owns the fourth-largest market cap of any cryptocurrency at nearly $16.3 billion, trailing only Bitcoin ($643 billion), Ethereum ($162 billion), and Tether ($25 billion).

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Matt Borelli

Matt Borelli is a staff writer at CoinChapter, covering the daily developments in the cryptocurrency world. He is a Bitcoin enthusiast and proud Dogecoin holder. When not reporting on the latest cryptocurrency news, Matt can be found at the nearest baseball stadium.

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