The Polkadot project is one that has continued to see an increased level of growth. Its native token, DOT, has witnessed an increase in price by nearly 50%. This could be traced to two actions taken by Binance.
New Binance Investment
Two days before Christmas, Binance gave what seemed like a Christmas gift to the Polkadot network. The leading exchange announced it would be pumping about $10 million into the network, to fund projects. Binance revealed this via its official website and said this was to bring DeFi closer to its users.
According to Binance, “High-quality projects will also have the opportunity to get fast track review for Launchpool and Launchpad. Additionally, DOT will be added as a part of the Launchpad token session and Launchpool.”
In the statement, Binance also promised new Polkadot projects of more than just finding. Binance says that apart from access to their large customer base and financial management, projects would also get knowledge sharing and other resources.
The New Face of Binance Homepage
Now the funding from Binance made the price of DOT to go up, but listing on the Binance home page made it shoot up even more. The ETH/BUSD pair on Binance’s homepage was removed to display the DOT/BUSD pair. Users on the social media platform, Twitter, quickly noticed the change and caused a buzz about DOT almost immediately.
ETH is replaced by $DOT @Polkadot and is displayed on the homepage of @binance pic.twitter.com/d7Jx3b8mgE
— PolkaWorld (@polkaworld_org) December 28, 2020
This is huge for DOT because it means any trader logging into their Binance account, gets to see DOT first. According to data from CoinGecko, the price of DOT went from $5.32 to $7.24 in the space of 3 days. This represents almost a 50% increase in just under a week.
The Polkadot network looks promising, as it operates on a novel concept called ‘parachains.’ These parachains are blockchains that are linked to each other, and have more capacity than normal chains. It was founded by Gavin Wood, an Ethereum co-founder, this year.
