Within a week, Polkadot has surpassed Tezos, EOS, and Cardano, advancing to the top seven in total market value.

After the transfer function of Polkadot's native token DOT was enabled on August 19, its total market value approached nearly $5 billion, surpassing blockchain projects such as Tezos, EOS, Cardano, NEO, TRON, and Cosmos, ranking among the top seven in total market value. Even projects within the "Polkadot ecosystem" have seen an upward trend recently, largely driven by the performance of DOT.

Total Market Cap Approaching $5 Billion

The release of Polkadot has been one of the most anticipated events in the industry this year. Many private sale participants have been waiting for 3 years for this moment. Polkadot's mainnet was launched in May 2020, but the DOT token didn't enable transfer trading until August 19th. The open network only entered substantial operation at that time.

According to data from CoinGecko, since the native token DOT of the well-known public chain project Polkadot enabled transfer trading on August 19th, the token price has surged from around $3 to a peak of $5.67, an increase of over 80%.

Currently, the circulating market cap of DOT is close to $5 billion, surpassing public chains like Tezos (XTZ), EOS, and Cardano (ADA), ranking seventh in total market cap, just behind Bitcoin Cash (BCH).

However, you won't see this ranking on CoinMarketCap yet. According to the website, this currency does not currently meet the standard qualifications for a normal ranking.

Why Polkadot's High Market Cap is Justified

Many may be surprised why Polkadot's market cap can surpass long-standing public chain projects like Tezos, Cosmos, and EOS shortly after its launch. However, the cryptocurrency information platform Crypto Briefing believes that Polkadot's rise to the top ten in market cap is quite reasonable.

Crypto Briefing states that the overall trading activities on blockchains like Tezos, EOS, Cardano, NEO, TRON, and Cosmos are not very active, and past research has found that 82% of transactions on the Tezos chain and 95% of transactions on the EOS chain are meaningless.

Furthermore, Crypto Briefing points out that besides Ethereum, Polkadot and Cosmos are preferred fundamental blockchain platforms for developers when building applications. Part of the reason is that these blockchains have built-in interoperability (cross-chain) solutions at their core, providing developers with a more functional development environment. Crypto Briefing states:

"If Polkadot can attract more developers and potential users compared to other public chain projects, then having a higher network value compared to other alternatives is quite reasonable."

"Polka Ecosystem" Erupts

It is worth noting that despite the 3-year delay in its official launch, many developers had already flocked to Polkadot to develop their projects before the launch. These projects built on Polkadot have formed what is known in the industry as the "Polka (Polkadot) Ecosystem," including projects like Kusama, Edgeware, ChainX, and StaFi. These Polka ecosystem projects have also shown an upward trend recently, largely driven by DOT.