The Polkadot token, which recently underwent a redenomination, has seen its value more than double in less than seven days. Now with a reported (but unverified) circulating supply of 897,657,920 tokens, the Dot token claims its place as the fifth-ranked token.
At the time of writing, the token traded at $6.23, which translates to a market capitalisation of $5.63 billion. This market capitalisation is just about enough for Dot to displace the Link token from its current position.
Coinmarketcap officially ranks the token at number 2172. The market capitalisation of a token or coin is determined by multiplying the price of a token with the circulating supply. Information on the Coinmarketcap website suggests “the organisation has not sufficiently verified the circulating supply and resulting market cap yet.”
Still, there is another metric which seemingly supports Dot’s status as a top tier token–the traded volumes. According to Coinmarketcap data, the Dot token’s traded volumes on August 27 surged to $1,4 billion, a figure higher than Chainlink’s volumes of $1.28 billion on the same day.
In fact, Dot’s 24 hour traded volumes have been exceeding $480 million since August 22. Yet, before this spike, the token’s previous traded volumes did not exceed $50 million. According to the data, on August 20 and 21 the token’s traded volumes were $48.8 million and $49.3 million respectively.
These are the only known trades to occur just before the redenomination event.
Meanwhile, in a public notice explaining the process of redenomination on August 17, the team at Polkadot Network said: “the redenomination of the token (was) scheduled to occur on 21 August 2020 at 16:40 UTC block number 1,248,328.”
The Dot token is used for governance, staking and bonding on the Polkadot network. The community had voted for the redenomination to take place on August 21. The notice adds that after redenomination, the “New Dot is 100 times smaller than DOT (OLD).”