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1. What is Polkadot (DOT)?
Name: Polkadot
Symbol: DOT
Overview:
Polkadot is not a conventional blockchain. It is actually an ecosystem of interconnected blockchains called parallelized chains (parachains). Parachains are application-specific and they plug into a single base platform called Relay Chain.
The Relay Chain does 2 main things:
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It secures the parachains.
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It contains Polkadot's consensus and voting logic.
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Polkadot was conceptualized by Ethereum co-founder Dr. Gavin Wood. He is also the inventor of the Solidity smart contract programming language.
Polkadot has an interesting history. It raised funds through an ICO in 2017. A hacker "froze" 66% of these funds within a few days of the raise!
What I like best about Polkadot is that its network has a common set of validators for securing multiple blockchains. And that transactions are spread across multiple parallel blockchains.
DOT is the native token of the Polkadot network. DOT helps in operating and governing the network, and in creating parachains.
Consensus mechanism:
GRANDPA (GHOST-based Recursive ANcestor Deriving Prefix Agreement) and BABE (Blind Assignment for Blockchain Extension)
2. Metrics
As of 5 October, its core metrics are:
Price metrics
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Current Price:
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$ 32
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All-time high (May 15, 2021)
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$ 49.69
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All-time low (Aug 20, 2020)
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$ 2.69
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Supply metrics:
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Circulating supply:
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987.6 million DOT
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Total supply:
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1.1 billion DOT
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Maximum supply:
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Unlimited
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Note:
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Circulating Supply is the number of coins / tokens in public hands.
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Total Supply is the number of coins / tokens created minus the number burned.
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Maximum Supply is the maximum amount of this crypto that can ever exist
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Figures have been rounded off for convenience
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Marketcap & Volume metrics:
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Market Cap:
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$ 31.7 billion
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Fully Diluted Market Cap:
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$ 35.4 billion
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Volume (24h):
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$ 1.29 billion
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Volume / market cap ratio:
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0.04
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Velocity:
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1.3
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Note:
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Market cap = Current Price x Circulating Supply
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Fully Diluted Market Cap is the market cap if the maximum supply was in circulation
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Volume (24h) is the fiat value of this crypto traded over the last 24 hours
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Dominance measures a crypto's total market capitalization relative to the total market cap of all cryptos
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Volume / market cap ratio = 24h Volume / Marketcap
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Velocity = 24h Volume / Circulating Supply
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Figures have been rounded off for convenience
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Risk metrics:
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Volatility
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Sharpe ratio
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Last 30 days
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1.5
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0.17
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Last 90 days
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1.3
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2.93
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Last 1 year
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1.5
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2.04
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Last 3 years
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1.8
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1.4
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Note:
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Volatility measures the annualized standard deviation of daily returns
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Sharpe Ratio measures the excess return for a given level of risk
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3. Wallets
The popular wallets include Fearless Wallet, Klever, Polkawallet, and Stylo.
Note: The data/graphs are from CoinMarketCap, Messari, and Future Money Wallet. Figures as of 5 October 2021.
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