Cryptocurrencies have been criticised for their relatively high energy consumption and consequently large carbon impact.
As a result, several blockchains and cryptocurrency initiatives have migrated from energy-intensive approaches such as proof of work (PoW) to environment-friendly techniques such as proof of stake (PoS). For instance, “The Merge,” Ethereum’s (ETH) recent transition to PoS, aimed to reduce its environmental effect.
Similarly, the blockchain network Polkadot (DOT) has been attracting the attention of market players despite the market’s persistent bearishness.
Bloomberg reported recently that the crypto hedge fund managed by Modular Asset Management has been amassing Polkadot tokens in a bet that currencies with higher sustainability features would outperform once the market stabilises.
The chief executive officer of Modular Blockchain Fund, Daniel Liebau, told Bloomberg that he hopes to get an advantage in volatile markets by selecting coins that he thinks will better resist increased scrutiny of the environmental, social, and governance (ESG) aspects of cryptocurrencies.
Despite the interest, DOT has shed part of its value over the past month, dropping $0.50 from $6.30 on 21 September to its current price of $5.80 as of 21 October. If one looks at a wider time horizon, the asset’s trajectory has followed the broader cryptocurrency markets, losing a staggering 78% of its value year-to-date (YTD).
Live Polkadot (DOT) Price Chart
With such prominent interests and rising ESG trends, does DOT have an advantage over other cryptocurrency projects?
Before further examining the particulars, let’s determine who owns the most Polkadot.
In addition, we’ll analyse DOT’s tokenomics and other factors to assess the token’s potential future paths.
What is Polkadot and how does it work?
Dr Gavin Wood, one of Ethereum’s co-founders and the…
