Polkadot is the last among the cryptocurrencies that created the buzz all over and it is continuing to be one of the most trending cryptocurrencies. It is because it reached its all-time highs of $31. The cryptocurrency began to be bullish in the last few days of December. Polkadot was trading at $5 on December 28 and it reached $42 on February 20, 2021. The digital asset increased six times in a month and a half.
The late 2020 and early 2021 have shown positive times for all the cryptocurrency asset classes. One of the cryptocurrencies that gained a lot of traction even after being a newcomer is Polkadot (DOT). The cryptocurrency was introduced to provide connectivity options for custom-built side chains and public blockchains.
Initially this digital asset saw minimum public interest and it traded between $2.50 and $5.00 from May until late-December 2020. However, the DOT did not remain the same, as it proved its ability during December 2020 and February 2021 with its all-time highs of $31. Although Bitcoin and Ethereum are the evergreen cryptocurrencies in the industry Polkadot proved itself to be an outstanding investment.
Polkadot is a cryptocurrency project based on a multi-chain framework that aims to provide the most advanced peer-to-peer network for numerous blockchains. Swiss-based Web3 Foundation developed Polkadot in 2016 to provide a fully functional and user-friendly decentralized platform.
After the mainnet was introduced, the cryptocurrency saw a boom in its price and leaped into the top10 cryptocurrencies. Being a new-comer, Polkadot worked to build a scalable blockchain that grows with time and increasing demand. Ultimately, the digital asset aims to build a complete decentralized 3.0 Internet.
Polkadot has a native cryptocurrency called the DOT token. Polkadot offers all the DOT holders the right to vote. Based on the votes received, a consensus on the plan can be achieved. DOT token is not an ERC-20 token because it is based on the Polkadot blockchain. The token has three main purposes for Bonding, Staking, and Governance.
Why should you invest in DOT?
There are various reasons why you should invest in Polkadot as it solves specific problems of blockchains. There are some blockchains that are slow and get clogged up. But, with Polkadot, it is not the same, as it is a heterogeneous sharded blockchain which makes it a fast scalable blockchain. Upgrading blockchains and deciding how to proceed when something goes wrong on-chain is hard.
Polkadot has a set of functions that are powerful and can be used for DeFi programs. Some teams have selected a Defi-chain architecture for the Polkadot ecosystem. DeFi has a single sub-category that is, liquid staking, and this enables the user with a staking sign to gain instant liquidity.
Hence, the token holders have a strong advantage, although there is a possibility of centralization. Polkadot DeFi projects copy the existing concepts as well as develop brand new concepts.
Technical Price Analysis of Polkadot
Polkadot conducted a successful ICO in October 2017, raised over $140 million, and sold half of the 10,000,000 DOT supply. Unfortunately, the company went under losses and had to conduct two rounds of a private sale. One was conducted in 2019 and the other in 2020.
During the ICO days, DOT was trading at $30 but in August 2020, the DOT holdings were dominated. Initially, the DOT price started to trade at $5.2 in mid of September and began to fluctuate in further days. Later, in early October, the token was trading at $4.42 and then plunged to $3.86 in the mid of October. Until the end of October, DOT prices traded between $4.01 and $4.15.
In the initial days of November, DOT price suffered major fluctuations as the price plunged to $3.90. Then, by the end of November, the Polkadot price was back on track with a price of $5.88. In early December, Polkadot continued to trade at $5.36 and then started to fluctuate. During the mid of December, DOT price reached $5.47, and concluding the month on a bullish note, the DOT price was $7.68.
In the month of January 2021, the cryptocurrency remained bullish. In the initial days of the month, the DOT price was trading at $8.00. Later, in the mid of January, the cryptocurrency was bullish at $13. By the end of January, Polkadot’s price was $15. While in the month of February, the price of the cryptocurrency was $18.00 and in the mid of the month, the cryptocurrency saw its all-time high of $42.
Polkadot Price Prediction 2021
The DOT token has performed tremendously since the beginning. Although the cryptocurrency plunged to its all-time lows of $2.7, it regained its traction within no-time. Hence, proving itself to be a potential cryptocurrency. Currently, the cryptocurrency is trading at its all-time high of $31.29 and it may reach $40 by the end of March 2021. Later in mid of 2021, the cryptocurrency may reach $50 and by the end of 2021, Polkadot’s price may be close to $60.
Expert Price Prediction
The potential of the Polkadot blockchain is tremendous and many experts see a good future in cryptocurrency. Hence, after taking a closer look at the price predictions many analysts have given their views on the same.
TradingBeasts provides Polkadot price predictions for the coming 5 years. As per the platform, Polkadot’s price in 2022 is predicted to be $30.631 and is expected to grow for the year ahead. Later in December 2023, the minimum price of Polkadot is $30.55 and its maximum price is $44.926. These price predictions depend on the volatility of the market. In January 2024, the DOT price is predicted to be at an average of $36.462.
As per Wallet investors, the DOT price will increase slowly and will have a less fast fall. At the beginning of 2022, the DOT price will be trading at $19.65 and above. On the higher side, the cryptocurrency price may even hit $20. By 2023, the DOT price will exceed $23.587 and may reach $25. By January 2025, the DOT price is expected to be between $20 and $25. In mid-2025, the DOT price is expected to surpass $35. In December 2025, DOT will hit anywhere between $40 and $42.
Digital Coin Price
As per the predictions by Digital Coin Price, the Polkadot price is expected to increase at the start of 2022. In January 2022 the Polkadot price will swing between $31.24 and $33.54. While in 2023, the DOT price would reach $36.78. Furthermore, in 2024, it is predicted to be $44.32 and in 2025, the DOT price is predicted to be $52.4.
CoinArbitrageBot gives a green signal for investing and predicts a long-run price boost. As per the platform, the Polkadot price is expected to reach $24.0650 and will further increase more. In 2023, the price is expected to reach $38.9372. While in the year 2024, it predicts that the DOT token will reach $63.004 and sees the cryptocurrency to be optimistic in a long run.
Polkadot stands to be unique among all cryptocurrencies because of the features it holds. The Polkadot price predictions mentioned above show a good future of cryptocurrency in the long term. Although the cryptocurrency is a potential one, one should not make his/her purchase decisions based on these predictions. The expert’s opinions are based on technical analysis and they do not consider external influences. Hence, you should form your own opinion and use the predictions to create your own perspective before buying.