Polkadot (DOT) Undergoes Re-denomination, Price Surges Nearly 130% In Five Days

If you have been focusing way to much over the developments in some of the top-ten cryptocurrencies, you need to shift your attention to some lesser heard altcoins and we are talking about Polkadot (DOT).

Last week on August 21, the Polkadot (DOT) token underwent a re-denomination with made the new DOT tokens 100 times smaller than its old version. The re-denomination is just like the stock split which we often hear about in the traditional financial markets.

With the re-denomination, the balances for the ‘New DOT’ tokens have also increased by 100 times. As per the official announcement from Polkadot, the value of all token holdings remain the same as before.

When Polkadot conducted its first official governance poll for DOT holders last month in July 2020, it already made it clear that this wouldn’t impact the economics of the Polkadot (DOT) ecosystem.

With the relaunch of Polkadot, the new DOT tokens are already trading on a number of popular cryptocurrency exchanges like Binance, OKEx, Kraken, and Bitfinex. Post the re-denomination of the DOT tokens, Polkadot has seen a massive rally on the charts.

If we check the seven-day chart of Polkadot on WorldCoinIndex, it is clear that the new DOT token price has surged more than 130% in just the last five days. At press time, the new DOT tokens are trading at $6.72.

Currently, there’s still some confusion regarding the total circulating supply of the ‘New DOT’ tokens and we expect clarity over the next few days. As a result, there’s no proper information on Polkadot’s market cap at present.

However, Polkadot has emerged as one of the top-performing altcoins over the last week. Polkadot is basically a blockchain network that focuses on “true blockchain interoperability”.

It is a project by the Web3 Foundation that provides a framework for developers to build and join blockchain together. Well, one of the major hurdles with blockchain technology has been the inter-blockchain or cross-chain communication.

Polkadot solves this issue of blockchain interoperability by connecting multiple blockchain into a single unified network. As per the Polkadot Lightpaper, the network addresses several advantages of scalability, heterogeneous sharding, transparent governance, upgradability, and cross-chain composability.

The DOT token have been recently in limelight after the project has received major attention from some big players in the industry like the Spartan Capital.