Seven-day gain far exceeds Bitcoin! Polkadot surged after receiving tens of millions in development funds, is EOS media now praising Polkadot?

Binance cryptocurrency exchange recently announced a $10 million investment to support the popular cross-chain project Polkadot DOT. With Bitcoin leading the way in the current surge, DOT has seen a 45% increase in the past seven days. Binance has also encouraged DeFi projects built on the Polkadot ecosystem to apply for development funds as soon as possible.

What is Polkadot (DOT)

Polkadot is a proof-of-stake (NPoS) network built by blockchain infrastructure development organization Parity Technologies and the Web3 Foundation. It aims to solve scalability challenges and increase interoperability between blockchains using sharding technology.

Since its ICO in 2017, Polkadot has been in development for four years. According to a developer report released by investment firm Electric Capital, it shows a positive trend. The report indicates that Ethereum took around 1200 days after protocol launch to reach 400 developers, while Polkadot achieved this in approximately 1100 days, with cross-chain protocol Cosmos ATOM ranking third at around 1600 days.

$10 Million Support for Polkadot Ecosystem

The recent surge in DOT began on the 24th, following Binance'sannouncement on the 23rd. Besides announcing a $10 million investment to support the Polkadot ecosystem, Binance aims to expand its own Binance Smart Chain (BSC).

Binance mentioned the launch of new coin mining on the 22nd of this month, as well as a new project based on Polkadot called "Reef Finance." Reef is an intelligent yield and liquidity aggregator, and the first Polkadot ecosystem project to integrate with Binance Smart Chain.

Furthermore, Polkadot's main competitor has been assumed to be Ethereum. On the 28th, some users noticed that the Binance App briefly replaced the ETH/BUSD trading pair with DOT/BUSD on its homepage, sparking rumors in the crypto community about Polkadot potentially replacing Ethereum.

Significant Speculation in China

It's noteworthy that, unlike Ethereum, Polkadot does not yet have mature projects in operation, with a community focus more on Asia. The speculative pattern is quite similar to EOS, which experienced a surge in popularity upon its mainnet launch in 2018 but later faced collapse as it failed to progress further with applications, losing its title as the "Ethereum killer."

Commenting that "EOS and Polkadot have similar paths" is not without reason. Media outlets previously dedicated to the EOS community, like "EOS Gravity Zone," have almost entirely shifted their focus to Polkadot, regularly publishing related articles.

However, compared to EOS's current token price of $2.59, which once reached $20, it still represents a significant increase. For investors who sold at the peak, it was a great investment. Nevertheless, even with strong confidence in a particular project, investors should diversify their portfolios and not bet solely on one project for long-term success.