Polkadot has been having an absolutely massive run-up over the past couple days from the 13th of January onward.
I would say Polkadot is currently in the price discovery mode and we have no idea where it could go, I could perform some technical analysis on the chart but there's absolutely none to do because we're in uncharted territory right now.
One of the most shocking thing in my opinion is how fast $DOT flipped XRP's market cap, making it the fourth largest cryptocurrency by market cap which is absolutely wild sitting at a market cap of over 13.5 billion dollars right now.
Can polka dot really make you that much money if it's already so big?
Well it can but if we really want to make those absolutely gains we have to look at projects that are inside of the Polkadot ecosystem.
Polkadot instead of having a single blockchain it has a range of multiple different blockchains known as parachains.
Basically you have the main chain, which is the relay chain and then you have para-chains which link into that relay chain and provide different solutions for very specific problems
that need to be solved within the ecosystem and each token that launches on top of the polka dot ecosystem can actually have its own entire blockchain.
Polkadot no doubt is here to stay since it is founded by the co-founder of Ethereum mr.Gavin Wood. To refresh your memory , he created the programming language that Ethereum smart contracts are written.
Briefly, Polkadot provides transactional scalability by spreading transactions across multiple parallel blockchains . Considering that Ethereum suffers greatly from scalability issues we can't get enough transactions through the system and fast enough for it to be scalable.
More people coming into ETH ecosystem, the more clogged the system gets and the slower and more expensive the system becomes.
With Polkadot this problem is solved, you might be thinking that this is another ethereum killer and it's often touted as that all around the internet that polka dot is the next ethereum killer, but gavin wood has very carefully explained that it is not an ethereum killer but it is a bridge between eEthereum and Polkadot ecosistems.
