Although I cleared all my $DOT tokens in May, I still pay attention to the opportunities in its ecosystem.


As a truly king-level project, its market value was ranked in the top ten for many years, but now it has fallen to twenty-fourth, surpassed by $uni, $ton, and others, with a market value of only 6.6 billion USD.


Speaking of Polkadot, many newcomers may not be familiar with it. The founder @gavofyork, PhD, is actually 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 in EVM are completed using this programming language, making him one of the most prominent figures in the crypto field.


Let's discuss several major reasons why I've refocused my attention:


1. Unified address format


@Polkadot, like its competitor @cosmos, I think the biggest problem lies in the lack of unified addresses, the ecological addresses are extremely chaotic, coupled with the poor usability of wallets, which increases the learning cost for users.


Having missed the DeFi explosion in 21 and 22, it wasn't until November 24 that the Referendum #1217 agreement was passed, officially deciding to unify the address format.


In the future, all parachains will use SS58 prefix 0, with addresses uniformly starting with 1, and existing parachains will gradually adopt the new format through #runtime upgrades.


2. ETF approval


After the BTC and ETH ETF approvals, the sharp rise in coin prices gave me confidence, and the #DOT ETF approval is also approaching. The SEC has determined after three years of review that #DOT is software and not a security.


Originally, the ETF decision scheduled for June 11 was postponed to November 8, and recently the SEC's attitude towards cryptocurrencies has become unusually mild.


Once the ETF is approved, I personally think DOT will be a good target, as a token with a market value of only 6 billion USD, the growth potential is enormous.


3. Technical advantages


Although Layer 2 has developed significantly over the years with very high TPS, DOT, as a native cross-chain heterogeneous sharding chain, is inherently more secure, and the ceiling limit for TPS will also be very high.


However, the current valuation of TPS is not high, so this is not the main reason for my investment at this time.


Finally, let me talk about my own investment strategy:


I plan to build positions on dips soon, with the best position being below 3.5 USD, keeping it for staking on the mainnet or earning interest on exchanges.


Before the ETF approval, allocate a certain position. Once the ETF is approved, I can choose to increase my holdings again.