A widely followed crypto strategist is warning that Ethereum (ETH) rival Polkadot (DOT) has one big fundamental weakness.
The anonymous host of InvestAnswers tells his 443,000 YouTube subscribers in a new strategy session that a lot of development is happening within the ecosystem of the interoperability protocol.
However, he says Polkadot is experiencing a lack of adoption, which he notes is an ominous sign for any blockchain project.
“Polkadot has an incredibly good [development] score when compared to the rest. But adoption is in the toilet. It has flatlined again, along with many others. It is critical, absolutely critical, for a chain like a mall to have customers. You can have the best technology in the world, but if it’s not adopted. you’re wasting your time. And that is the predicament that Polkadot is in right now.
Again, really good tokenomics, not too good of a SCP (smart contract platform) score for many different reasons. And here, adoption is nowhere to be seen…
A quick and dirty summary here: the tokenomics are solid, development score is solid, SCP is number 10 out of 20 – beyond the top 20 they are just ghost chains that’ll never go anywhere. And the real issue is adoption.”
According to the crypto strategist, Polkadot could solve its adoption issue overnight if the blockchain develops a killer use case that attracts millions of new users.
“Crypto is not loyal. And we’ve seen how some chains will gradually wither away. But some can explode and flourish unexpectedly. I don’t know if Polkadot is going to be one of those. I don’t know if some of their sub-chains will be very successful. We can’t tell. But what I have seen is users are fickle. And if they have a value proposition product market fit that’s second to none, millions of users could go overnight.”
Polkadot is trading for $6.31 at time of writing, up 1.7% in the past 24 hours.
IDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney