The Polkadot Ecosystem – A “Silent” Performer In This Bull Market?

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3 min read

Since 2020

Polkadot launched during the first half of 2020 and I managed to gain an early entry into a small DOT position. I was also an early investor in Kusama, which went on to reach significant valuations in 2021. I have always been a fan of Polkadot, but strangely, never really had much exposure to the ecosystem. Apart from my initial investments in DOT, KSM, and a few other smaller projects, my exposure has been rather limited.

This is however destined to change. One of my recent altcoin picks for 2025 is a project in the Polkadot ecosystem. More specifically, SubstrateCentrifuge is geared toward the financing and tokenization of real-world assets. CFG is one of the assets I have chosen as a way to gain exposure to the “tokenization of everything”, while simultaneously gaining exposure to the Polkadot ecosystem.

The project is up 100% since I published it as an altcoin pick in September. It’s one that I am eyeing for the long haul and will most likely dollar-cost average into an ever-expanding position. As long as I can gain an early entry, I am happy to continue averaging in at higher prices. As always, I will look to maximize the dips. Moonbeam (GLMR) is another one I am eyeing and began building a position at the $0.20 level.

Generally speaking, Polkadot doesn’t get much media coverage in comparison to projects such as Cardano, Solana, and Polygon. However, it is in the Top 15, according to market cap, and has quite a lot going on. This causes me to wonder if Polkadot and its entire ecosystem are perhaps not set for a surprisingly successful bull run. I am willing to take a calculated bet on Polkadot.

The Layer 1 Effect

The layer 1 effect is something I have addressed previously, and in short, is the positive effect a coin’s bullish price action has on the projects within its ecosystem. I often invest in a chain via the layer 1 effect, rather than the actual coin. This was the strategic approach behind my recent altcoin pick, BONK, which is a memecoin on Solana.

When Solana first began to rally, I noticed that this token was moving in tandem with Solana. However, in terms of percentage points, BONK was outperforming Solana. It was at this point that I realized that I could “leverage” BONK as a Solana investment, and ultimately ensure greater gains than if I were to invest directly into Solana by purchasing SOL.

As it turns out I was right, BONK has rallied approximately 500% since my altcoin pick 12 days ago and is a great example of how the layer 1 effect goes to work. Raydium, a DEX on Solana managed to rally 100% in a single day. Many of these moves manage to evade the majority of investors, as research is something Crypto enthusiasts often promote, and yet seldom practice.

Knowing what to do and actually doing it are two very different things, and I have noticed that very few Crypto enthusiasts practice what they preach when it comes to DYOR. Anyway, I expect that Polkadot will perform a lot better than expected, which will inevitably cause attention, and hype, and eventually produce a self-fulfilling prophecy.

Final Thoughts

I have always thought that Polkadot deserves a lot more attention, and perhaps the bull market of 2025 is going to provide the opportunity. Taking a look at key projects within the ecosystem reveals some enormous discounts. Needless to say, I will be on the hunt! That’s it for this one, enjoy the altcoin rally, and catch you in the next one!


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This article was first published on Sapphire Crypto.