Although I cleared all my $DOT tokens in May, I still pay attention to the opportunities in its ecosystem. As a truly top-tier project, it used to rank in the top ten by market cap for many years, but now it has fallen to twenty-fourth, surpassed by $uni, $ton, and others, with a market cap of only 6.6 billion USD. Speaking of Polkadot, many newcomers to the space may not be familiar with it. The founder, @gavofyork, is a co-founder of ETH, and he completed the main technology of ETH, as well as being the author of the Solidity language. All contracts on the EVM are written in this programming language, making him one of the most prominent figures in the crypto space. Here are a few major reasons why I am paying attention again: 1. Unified Address Format Like its competitor @cosmos, I think the biggest problem with @Polkadot is the lack of a unified address format. The ecosystem addresses are extremely chaotic, and the wallets are not user-friendly, which increases the learning cost for users. After missing the DeFi explosion in 2021 and 2022, it wasn't until November 2024, when Referendum #1217 was passed, that it was officially decided to unify the address format. In the future, all parachains will use the SS58 prefix 0, with addresses starting with 1. Existing parachains will gradually adopt the new format through #runtime upgrades. 2. ETF Approval After the approval of BTC and ETH ETFs, the sharp rise in coin prices gave me confidence, and the approval of the #DOT ETF is also approaching. The SEC has determined after three years of review that #DOT is software and not a security. Originally scheduled for June 11, the ETF decision has been postponed to November 8, and recently the SEC's attitude towards crypto has become unusually mild. Once the ETF is approved, I believe DOT will be a good target, as it is a token with a market cap of only 6 billion USD, which has tremendous growth potential. 3. Technical Advantages Although layer 2 has developed significantly over the years, with TPS already very high, DOT, as a native cross-chain heterogeneous sharding chain, is inherently more secure, and the ceiling for TPS will also be very high. However, the current valuation of TPS is not high, so this is not my main reason for investing at the moment. Finally, let me share my investment strategy: I plan to accumulate positions on dips soon, with the best entry point being below 3.5 USD, keeping it for staking on the mainnet or earning interest on exchanges. Before the ETF approval, I will allocate a certain position. Once the ETF is approved, I can consider increasing my holdings.
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