Polkadot is a blockchain that specializes in interoperability solutions. While there have been other blockchain platforms offering similar solutions in the past, none of them seems to get as much hype as Polkadot. Per CoinGecko’s crypto rankings, Polkadot is currently ranked inside the top 10 crypto rankings with over $3 billion market cap, higher than all the other blockchain platforms that offer the same purposes and use cases.
So, what’s behind this popularity of Polkadot? Well, the fact that its main leader is Gavin Wood certainly helps a lot. Gavin Wood was the inventor of Solidity (Ethereum’s main smart contract programming language), and he was also the co-founder of Ethereum itself. Not only that, but he was also a CTO of Ethereum for a brief period of time. But eventually, he parted ways with Ethereum to build his own project. Polkadot is his creation.
The great thing about Polkadot is that it works, and it allows everybody to build their own chains while still able to connect with each other through one same Polkadot ecosystem. There are already many altcoins projects compatible with the Polkadot network. Many of these substrate-based altcoins have been pumping quite significantly in the past few months alone. (FYI, substrate is the open-source framework that can be deployed to Polkadot network)
Just like the DeFi rush, many projects that try to ride the Polkadot hype have been enjoying their rise to the top of the crypto market. You want to get to know what projects I’m talking about? Well, let’s get right into the list.
Mantra DAO (OM)
One of the rising stars in the DeFi space is Mantra DAO (OM). Mantra DAO is a community governed DeFi platform that will operate on top of Rio Chain or Rio DeFi (which is built on Substrate). Mantra DAO’s native token itself (OM) was launched as an ERC-20 token, although they promise they would issue their own native token on Rio Chain in the form of RST-88.
Mantra DAO is hyped because it promises three different things that separate itself from the mainstream DeFi protocols. First of all, it promises the utilization of undercollateralized loans through the concept of social credit. This is something new and something we haven’t seen in action in the DeFi space. Secondly, Mantra DAO promises a 88% APR through its staking program in Bithumb. This APR is crazily high and it incentivizes a lot of early adopters to lock their OM tokens within two months.
And thirdly, as mentioned above, Mantra DAO will operate on Rio Chain, which is based on Substrate. The Rio Chain or Rio DeFi team also promises to try to get a parachain slot, which will solidify their position in the Polkadot ecosystem. Unlike Ethereum-based DeFi protocols that are limited with slow transactions and high gas fees, Mantra DAO should be able to scale properly by utilizing Polkadot’s technology.
Another big hype in the Polkadot ecosystem is Ocean Protocol. OCEAN already established itself inside the top 100 crypto rankings, something that’s not easy to achieve for most projects. OCEAN is basically a decentralized data exchange protocol. It tries to break data monopoly and decentralize it to challenge the monopoly of Google, Facebook, and other big tech entities.
Within Ocean Protocol, you can build a decentralized data marketplace, and you will have a full right to manage and sell your own data. Organizations that believe in a decentralized future will be able to buy/sell data from various marketplaces, which will be connected through one same protocol (which is Ocean).
The idea has been widely accepted by altcoin enthusiasts and the fact that Ocean is built on Substrate also helps its bullish momentum in the second and third quarters of this year (2020). Many people predict that Ocean Protocol would become the first mainstream decenteralized data marketplace ecosystem.
Sora (XOR) and Polkaswap (PSWAP)
Perhaps, one of the most hyped and still underrated substrate-based altcoin is Sora (XOR). To give you a perspective, XOR was trading under $1 in the second week of July, and it’s been pumping quite heavily to above $50 within less than 2 months. The insane rise of XOR has been noticed by many crypto enthusiasts and yet the market cap of XOR remains low (lower than $100 million).
Sora is a project that tries to push the idea of DAE or decentralized autonomous economy. Inside the Sora ecosystem, various users will be able to create their own reputation points by exchanging XOR tokens and by voting on various Sora-based projects. Sora believes it can transform the mainstream economy.
Sora team is also in the process of building Polkaswap, which is designed to be the Uniswap version for Substrate-based tokens. By providing liquidity to Polkaswap, you will be able to receive rewards in the form of PSWAP token. The Sora team is hoping to be able to keep its hype momentum by building Polkadot’s own version of Uniswap in the form of Polkaswap. Apart from all Polkadot-based projects, PSWAP might be one of the best hidden gems in the market right now.
2020 has been a very good year for many altcoin projects. Substrate-based chains and DeFi tokens have been enjoying their own rise to fame. There are, of course, other substrate-based projects that are not mentioned in the above list. However, it’s not hard to see why Ocean Protocol, Sora, and Mantra DAO stand out among the rest.