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A major function of any blockchain is its decentralized nature. The miners and validators within the decentralized world play an essential function.
To not overlook, the aptitude of a series to forestall any assault is of utmost significance. And, Polkadot appears to be main in that house.
Polkadot – the most secure chain?
Calling Polkadot the most secure chain would require detailed evaluation. Nevertheless it definitely does have probably the most distributed validator counts of a number of the most vital DeFi chains.
In keeping with a Solana evaluation from Unstoppable Finance, in terms of the Nakamoto Coefficient, Polkadot has the higher hand.
This metric principally represents the overall variety of validators or nodes that must collude collectively in an effort to decelerate or block any blockchain from functioning correctly and efficiently.
Within the case of Solana, this determine stands at 27 as the highest 27 validators are answerable for 33% of the overall staked tokens.
Whereas within the case of Polkadot, the identical quantity is 82. Even Avalanche, probably the most quickly rising DeFi chains from 2021, stood at 28.
Nakamoto Coefficient of Polkadot | Supply: Unstoppable Finance
Thus, Polkadot absolutely is likely to be the higher choice on this case. However the identical can’t be mentioned from a long-term profit-seeking traders’ perspective.
Between November 2021 and press time, Polkadot has famous extreme drawdown of 86.05% as the worth of DOT fell from $56 to $7.84.
In the last few days, the altcoin confirmed indicators of restoration. DOT elevated by 17% within the final seven days.
Polkadot worth motion | Supply: TradingView – AMBCrypto
This means that traders who’ve been part of the community since final 12 months are at an absolute loss in the mean time.
Nevertheless, for short-term traders, this can be a great alternative as DOT is simply rising from its lows.
The chance-adjusted return on the asset represented because the Sharpe Ratio was additionally displaying passable readings at press time. The metric was sitting at a four-month excessive of two.03.
Polkadot risk-adjusted returns | Supply: Messari – AMBCrypto
Moreover, at press time, the Relative Energy Index (RSI) was additionally sustaining its bullish rise
This underlines the truth that going ahead, worth falls shall be minimal. (ref. Polkadot worth motion picture).
