The price of the Polkadot token (DOT) has skyrocketed by about 60% in a week to a new yearly high of $7.7. This development coincided with positive news from Binance as the leading crypto exchange announced a $10 million fund to support projects within the Polkadot ecosystem.
Binance’s $10M Fund For Polkadot
Launched via an ICO in 2017, Polkadot’s network allows interoperability and scalability for all protocols that employ it. The project’s popularity has skyrocketed since mid-2020 after several developments, including an entry in the DeFi field.
The Malta-based digital asset exchange Binance announced last week establishing a $10 million fund to “empower innovative projects to be built around the Polkadot ecosystem.”
Binance will also provide more of its resources to projects employing the Polkadot network. Namely, those are – media distribution, knowledge sharing, financing and financial management, derivatives, and access to millions of customers.
The exchange will prioritize the review of so-called “high-quality” Polkadot projects for the Binance Launchpool and Binance Launchpad platforms.
Binance also listed the selection criteria that DeFi protocols have to meet when submitting their proposals to take advantage of the fund.
These include “relatively maturity” of project development, readiness for large-scale adoption, a strong and committed team, and the potential to benefit the growth of the broader cryptocurrency ecosystem.
Binance’s endorsement included the listing of the recently launched Reef Finance project on its platform, which is built on the Polkadot blockchain.
DOT’s Involvement And Price Surge
Apart from setting up the $10 million fund, Binance added Polkadot’s native cryptocurrency (DOT) to the Launchpad token session and Launchpool pools. The popular exchange also briefly inserted the trading pair DOT/BUSD on the home page of its applications.
It seems that the fund’s announcement had a massive positive impact on the price of DOT. The token traded at $4.85 on December 23rd (the day Binance established the fund). In the following seven days, DOT has skyrocketed by about 60% to its new yearly high value of $7.68 registered earlier today.
It’s worth mentioning that Polkadot completed a DOT redenomination by a factor of 100 in August this year. This meant that for every one DOT token users held at the time, they received 100 new DOT coins.