Market capitalization and ‘flippenings’ happen to be important reflections of value for many crypto pundits and investors.
Anyone who’s been in the game since 2017 will recall the heated discussions revolving around the Ether (ETH) to Bitcoin (BTC) flippening and the same commotion was caused by Bitcoin Cash (BCH) and EOS flipping top blockchains as they moved into the top-5.
Now traders’ attention has shifted to Polkadot (DOT) as the network is currently ranked top-5 cryptocurrency by market capitalization and it seems that its ascension to the top came out of the blue.
The network aims to be a decentralized web where its users control applications, services, and institutions and contributors to the project include some well-known names like Ethereum co-founder Gavin Wood.
Despite being listed at major exchanges less than 30 days ago, Polkadot token is mind-blowing even to professional traders. Interestingly, its $600 million in weekly transparent volume has matched veterans like Bitcoin Cash and Litecoin (LTC).
Furthermore, DOT's price action seems to be somehow anticipating Ether's by 15 minutes to 4 hours.
Weekly transparent volumes. Source: NomicsSmall cap altcoins mimic Ether and Bitcoin price action
Usually there is a very high intraday performance resemblance between Ether and its indirect competitors that focus on governance, oracles, and interoperability.
Ether, DOT, LINK, ATOM, XTZ, Sept. price action. Source: TradingView
Nevertheless, sometimes one of these altcoins anticipates Ether movements. For DOT, this effect can be partially explained by its lower trading volumes and the fact that 77% of the total supply is concentrated among 100 wallets.
While a single $2 million sell order might impact Tezos’ (XTZ) $230 million weekly transparent liquidity, a $20 million sell order for Ether is a non-event as its market cap hovers around $8 billion.
Source: Etherscan, Polkastats,...