The promise of Polkadot’s parachains is a big draw for smart money investors, according to a new report.
Hundreds of venture capital funds, hedge funds, and mercenary liquidity providers have thrown their support behind Polkadot, according to a November report.
According to a survey by crypto market analytics firm Messari, smart money investors are rapidly embracing the Polkadot cryptocurrency DOT, which has emerged as the most commonly-held asset among the world’s top crypto funds.
Hundreds of venture capital funds, hedge funds, and mercenary liquidity providers have backed Polkadot, according to the November report, at a time when investors are betting big on the future of decentralized finance, NFTs, Web3 infrastructure, and the Metaverse.
Polkadot has the potential to disrupt all three of those nascent businesses, according to investors. Polkadot is an appealing bet since it aims to solve one of the main difficulties in the entire crypto sphere: blockchain interoperability. It was designed and created by Ethereum co-founder Gavin Wood. If the world of DeFi is to realize its promise, there is an urgent need to connect the hundreds of blockchain ecosystems that now exist, all of which operate independently of one another. Polkadot enables cross-chain transfer of any kind of asset, including data, tokens, and NFTs, with its innovative parachains, which are individual networks that run in parallel to the Polkadot framework, supporting an interoperable system of blockchains and enabling cross-chain transfer of any kind of asset.
Polkadot’s actual appeal may be that it’s no longer just a concept. After five years of construction, the first five Polkadot parachains went live this month, culminating in an auction procedure in which individuals amassed enormous amounts of DOT via crowd loans to bid for the coveted slots. Acala, Astar, Clover, Moonbeam, and Parallel Finance are the first five parachains to go live, and they cover everything from DeFi to investments and loans.
The introduction of the parachains was not unnoticed. Polkadot earned another major boost this month with the announcement that T-Systems MMS, a subsidiary of Deutsche Telekom, is supporting its public blockchain network by acting as a validator, assisting in the secure and reliable transmission of data between parachains.
T-Systems According to a press statement, MMS’s strong view on Polkadot motivated it to purchase a considerable quantity of DOT tokens. It’s another another huge endorsement of Polkadot’s concept, this time from Europe’s largest telecommunications company.
Polkadot’s growing popularity stems from the notion that the project is destined to become a crucial component of the DeFi ecosystem. Polkadot’s long-term goal is to establish a maximum of 100 parachains in the next several years, with a limited number of slots set aside for “common-good” initiatives that will benefit the whole crypto community. By acquiring DOT, investors will likely have a significant influence in which new DeFi ventures are able to secure a parachain position.
According to Messari’s analysis, 21 of the 53 crypto funds it monitors (39 percent) believe in DOT, making it the most popular asset in those portfolios. NEAR Protocol, Terra, and Ooasis Network, which tied for second place with 13 funds each, were the next most popular assets.