Getting supported by Binance, the world’s largest crypto exchange by trading volume, is a powerful thing in the crypto industry. To find evidence of this, one should look no further than the price of DOT, the native coin of Polkadot (DOT), and its data and asset interoperability-focused cross-chain protocol.
The coin surged by over 45% in a single week, and 14% in the last 24 hours, after receiving two votes of confidence from Binance.
Binance’s announcement gives DOT price a major boost
Polkadot’s price has surged by quite a bit, sitting at $7.21 at the time of writing. Last week, on December 24th, that price was only $4.82. In fact, Polkadot’s price is currently at its highest point ever, meaning that being supported by Binance allowed the coin to hit a new all-time high (ATH).
The coin’s surge started after Binance announced a $10 million-large fund for supporting Polkadot’s projects on December 23rd. However, the coin’s price escalated much more strongly on December 28th — only two days ago — as Twitter users noted that DOT/BUSD trading pair emerged on Binance’s homepage.
The new pair replaced ETH/BUSD, thus giving DOT a massive new amount of exposure, and presenting it to retail traders who were already looking for new assets with major potential.
Polkadot is a crypto/blockchain project that was actually created by one of Ethereum’s co-founders — Gavin Wood. Since its creation, the project was looking into ways to provide support to a number of interconnected sub-chains, known as parachains.
These parachains are important for the blockchain industry, as they can run high transaction throughoutputs. In fact, they can exceed Ethereum’s capabilities due to a more sophisticated design.
It would seem that Binance has recognized its potential, as well, thus granting it not only a $10 million fund, but also massive amounts of exposure and investor interest.
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