The price of the Polkadot protocol DOT token has increased by more than 40% in the last 24 hours, reaching $ 12.62, a new historic record.

As a result, the token's market capitalization exceeded $ 10 billion for the first time, according to data from CoinMarketCap.

Polkadot is a new asset on the market. It was built under the leadership of Gavin Wood and Jutta Steiner of Parity Technologies, who until last year divided the time between Ethereum-based projects and the creation of their own blockchain.

In December 2019, Parity said it would no longer retain the customer Parity Ethereum, which was then the second most popular way to access the Ethereum blockchain. The goal was to spend more time at Polkadot.

Even so, according to Polkadot's product positioning, the protocol is not so much a competitor as an enhancer for Ethereum. It is designed to connect multiple blockchains together so that they can be interoperable. The DOT is an equal share governance token for voting on transactions and a utility token for creating so-called “parachains”.

Since the launch of its core network in May, Polkadot has attracted the development of projects like Moonbeam, which works on scalable smart contracts, and KILT, which is working on digital identity.

* Translated and edited with authorization from Decrypt.co

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