Last updated on April 19, 2021 at 9:50 pm
Polkadot (DOT) is one of the newcomers to the crypto ecosystem. Developed by Ethereum co-founder Gavin Wood, Polkadot is a heterogeneous blockchain for the exchange of multiple chains that uses customized side chains to run its network. The idea to develop the Polkadot cryptocurrency came about when the Ethereum 2.0 sharding was developed.
The whitepaper for the Polkadot blockchain was published on November 14, 2016 with the first token sale in October 2017, which raised nearly 500,000 Ethereum. The main idea of Polkadot is to support the decentralization of the web and to create a framework with which blockchains can be easily created and decentralized financial advantages can be used with ease.
Since then, Polkadot Crypto has grown into one of the leading companies with a market capitalization close to the $ 50 billion mark, ranking 5th overall. Daily trading volume often exceeds $ 2-3 billion for the circulating supply of 924 billion DOT tokens. As of now, the DOT price is trading above $ 40 and has hit an all-time high of $ 47.
What is polkadot?
The Polkadot Project is one of the newbies to use the Sharding Multichain Protocol to run their network. This enables cross-chain data transfers, making multiple blockchains interoperable and increasing the decentralization of the web.
By connecting public and private blockchains, DOT crypto effectively acts as an intermediary for unauthorized networks, oracles and potential future technologies and enables the trustless exchange of information. Polkadot has defined three main objectives: network governance, operation and creation of parachutes.
Let’s take a look at some of the basics of polkadot. The DOT blockchain is made up of four main components, with the main component being the relay chain, which aims to create consensus, interoperability and shared security between networks of different chains.
Next up are the so-called parachains or parallel chains. This means that a branch can be created from the network using a different token that can be optimized for a specific use while maintaining interoperability with the original network.
Similar to parachutes, the Polkadot blockchain also offers parathread, which is based on the same model but has a pay-as-you-go model. Finally, the fourth component is bridges, which connect parachutes and parachute heads to other blockchains.
Polkadot price history and technical analysis
If we look at the polkadot price movement over the past year, we can see that the DOT coin has been rising sharply since early 2021. After trading at $ 4 to $ 5 for most of the second half of 2020, the DOT price was above its previous high of $ 7 on December 29, quickly reaching the Polkadot forecast price of $ 10.
This allowed more polkadot bulls to jump into the uptrend, fueling another spike in mid-January after retesting the $ 7 level as support. On January 16, DOT hit its highest daily price ever of just over $ 19. From then on, the upward momentum lasted for several days and the DOT price consolidated for more than a week with an average price of around $ 17.
At that time, the Polkadot Price Prediction was raised for many analysts, adding more interest to the entire Polkadot ecosystem. DOT / USD forecasts often mentioned the $ 40 mark as the next target for the following weeks. That projected price was hit later when the crypto, along with Bitcoin price, continued to recover in February, eventually hitting a high of around $ 42.
Later, the polkadot coin price began to consolidate again and traded at an average price of $ 35 for several weeks, with the minimum price for the trading range being $ 32.5. On March 24th, the polkadot price fell, quickly hitting the $ 28 mark where support had previously been found.
After a one-day break on March 25, the Polkadot price reversed and rose again. In the next week, the price approached the $ 40 mark again and made an optimistic DOT price forecast for the coming days. This resulted in a significant break above the $ 40 mark on April 2nd.
On April 3, the polkadot price finally hit a significantly higher high, briefly hitting the $ 46.74 mark. Another uptrend was quickly rejected and the momentum quickly reversed to retest the previous all-time high of $ 40 for support.
Advantages and disadvantages of investing
As of now, there are several blockchain projects similar to Polkadot. The best known is Uniswap, which has already reached a market capitalization of 16 billion US dollars and ranks 8th overall. It remains to be seen whether Uniswap can overtake the Polkadot price.
The biggest perk to investing in Polkadot, therefore, is its popularity and size, which, according to many coin price predictions, will hit the $ 100 mark in the coming months, giving a total market cap of over 107 billion. This advantage is also a disadvantage for the Polkadot network, as investing in a much smaller Uniswap could mean a much larger increase in the forecast price over the next several months.
Market forecast for the Polkadot Price 2021
The price forecast for Polkadot is optimistic for 2021 overall. As we saw last month, the price has risen rapidly, surpassing the $ 40 mark. This is likely due to the general interest in the decentralized ecosystem, which has developed rapidly over the past year. So let’s look at the current Polkadot forecast prices.
According to a popular crypto news outlet, Coinpedia, the forecast price prediction for DOT is set at $ 50 by the end of 2021. Also, the DOT forecast for 2022 is set at $ 70.2, and by the end of 2025, DOT / USD should be priced between $ 170 and $ 200.
TradingBeats, known for its detailed price prediction articles, estimates the maximum price for the cryptocurrency at $ 57.03. Furthermore, the Polkadot price prediction is set to a maximum of USD 70 for 2022 and USD 86.34 for 2024. The minimum price is set at $ 58.717 for 2024
Wallet Investor also has an optimistic Polkadot price prediction. By the end of 2021, they expect DOT to hit $ 100. Five years from now, the Polkadot price prediction is set at $ 417, which means they are much more optimistic about the cryptocurrency.
Cryptopolitan’s Judgment on Polkadot
We have a very optimistic forecast for the price prediction for DOT coins in the years to come. Let’s take a look at some of the current price milestones for the polkadot
Polkadot price prediction 2021
If we look at the growth over the last few months from $ 5 in January to $ 45 in early April, we have a price multiplier of 9. Therefore, we have an optimistic Polkadot forecast for the remainder of 2021 with a target of over $ 100 in the easy to reach in the coming months. If we see another 9x price multiplier from then on, DOT / USD could have a price of around $ 400 by the end of 2021. However, this is a very optimistic scenario.
Polkadot price prediction 2023
The Polkadot price prediction for 2023 is also bullish, unless the overall market is struggling to hit new highs and the Bitcoin price prediction turns bearish. Given Polkadot’s successes to date, we expect it to continue to rise to a minimum price of $ 200. If the rally continues this year and hits $ 100, we should be forecasting an increase from DOT to $ 1,000.
Polkadot price prediction 2025
The price forecast for Polkadot 2025 largely depends on the entire market cycle. If DOT crosses the $ 100-200 mark later this year, we can expect the price to top $ 1000 in the next few years. This projected price target is expected to be met in the next bull cycle as the current one is unlikely to continue through 2025.
What is the future of polkadot?
Overall, given our Polkadot price forecast, we should see a lot more growth this year. Price movement has gained a lot of momentum so far this year, and we’ve set the Polkadot forecast to easily hit the $ 100 mark.
The project’s fundamentals are solid as it brings a new and better proposition for decentralized finance users. The blockchain itself is interoperable between other networks, which means that it should keep growing as the overall crypto market grows.
As of now, Polkadot (DOT) is trading around $ 45 with a cap of over $ 40 billion. This puts the coin in 6th place overall. Polkadot is one of the top performing cryptocurrencies this year. Since the beginning of 2021, when it was trading around $ 5, the price has already increased almost tenfold.
Hence, we expect further price growth over the next few months with the next major target of $ 100. The coin is expected to hit the $ 1,000 mark by the end of 2025.
Is Polkadot Better Than Ethereum?
Polkadot has outperformed Ethereum so far this year. So in terms of returns, it is better than Ethereum. Additionally, Polkadot will be a serious competitor when it comes to viewing Ethereum’s slot as the number two cryptocurrency if DOT’s current bullish momentum continues.
Is It Profitable To Invest In Polkadot?
Since the beginning of 2021, the Polkadot price has increased almost tenfold, which means that it is actually a very profitable investment. If the entire cryptocurrency market continues to increase its market cap, DOT / USD should continue to grow.
Is Polkadot a Good Investment?
The DOT cryptocurrency has developed rapidly and gained popularity in the past few months. This is also reflected in the DOT price forecast. Hence, Polkadot is a good investment as it should be over $ 100 later this year. The DOT total capitalization is likely to soon overtake both Ripple (XRP) and Binance Coin (BNB), putting the coin in 3rd place overall.
Disclaimer of liability. The information provided is not trading advice. Cryptopolitan.com is not liable for investments made on the basis of the information provided on this page. We strongly recommend that you conduct independent research and / or advice from a qualified professional before making an investment decision.