Polkadot (DOT) has recently moved up to fourth place among the most important cryptocurrencies. One reason is considered to be the popularity of Polkadot in China. What’s behind it?
Just over five months Polkadot (DOT) has now been freely traded and has made remarkable progress in that short time. Most recently, Ripple (XRP) was overtaken by DOT in terms of market capitalization and has since made further significant gains in price. Insiders know that Polkadot particularly benefits from its position in China. Reason enough to take a look behind the scenes of Polkadot in China.
Polkadot sees China as a strategic target market
The Polkadot success story begins with founder Gavin Wood. This Gavin Wood was already well connected before Polkadot as co-founder of Ethereum (ETH) and maintains a second home in Shanghai. This confession alone counts positively in China, where white foreigners are accorded different respect than locals. And Wood gathered Chinese developers, investors and influencers around him early on. While other crypto projects often have fears of contact with undemocratic China, Wood saw huge potential for Polkadot. On the Chinese short message service WeChat, it can be observed on a daily basis how Polkadot is discussed and recommended by influential personalities.
Then, for example, data from Outlier Ventures shows that the number of active developers for Polkadot is growing rapidly, and many of them are from China. Here, a second move by Wood is important: The Web3 Foundation behind Polkadot is financially powerful and now considers proposals from China in almost 20 percent of its project funding. Interest from China in Polkadot is thus also met with a source of funding that makes decisions in a non-bureaucratic and non-political manner.
As a result, Polkadot is continuously managing to score points in competition with Ethereum (ETH) and EOS. As the blockchain of blockchains, Polkadot is able to confidently address the topic of DeFi and point out that it is not limited to one blockchain for DeFi projects. Binance has also recognized this and just before Christmas offered 10 million US dollars for DeFi projects based on Polkadot. Thus, Polkadot and the Web3 Foundation now find themselves in the comfortable role of being able to point to a broad developer community, the possibilities of the DOT Blockchain, and already successful projects in response to future questions in the crypto industry.
Conclusion: China an important backbone for Polkadot.
Our local view of the international crypto market sometimes runs the risk of limiting China to the country for Bitcoin mining. Yet the leadership in Beijing already defined the promotion of blockchain solutions as a strategic goal in the fall of 2019 and now seems to be much further ahead than other countries in introducing a state-backed digital currency (CBDC). So this is where Polkadot’s solutions meet blockchain-friendly policies, an army of developers and, last but not least, great capital. But watch out: TRON, for example, had to experience how quickly the tide can turn in China. The Chinese potential remains a risky undertaking for international crypto projects, including Polkadot.