Polkadot (DOT) price prediction
The rapid development of the blockchain industry has led to the emergence of numerous blockchain projects. This gave rise to a new, previously non-existent problem: communication between different blockchains. Most projects exist independently, with separate blockchains that aren’t connected in any way. That makes information transfer from one blockchain to another really difficult. Today, we’re going to study Polkadot, a project created precisely to solve this problem. In this article, we’ll explore what Polkadot is, conduct a technical analysis of the project’s token and try to predict Polkadot’s future.
What is Polkadot (DOT)?
In simple terms, Polkadot is a project on its own blockchain that allows any other blockchain to be ‘attached’ to it using unique technological solutions. This allows data to be transferred between different blockchains, both tokens, and any additional information.
The origins of Polkadot
Polkadot is the flagship project of the Swiss not-for-profit organisation Web3 Foundation, which was founded to create Web 3.0, a convenient decentralised Internet where users will control their data. The inventor of the concept of Polkadot is the president of the Web3 Foundation, Dr Gavin Wood, one of the most well-known individuals in the blockchain industry. He was a co-founder of Ethereum and one of the developers of the Solidity programming language for smart contracts.
In the future, trusting an institution with our interests will be as archaic a concept as reckoning on an abacus today. — Dr Gavin Wood
The Polkadot project was launched through an ICO held in 2017, which raised $145 million. Unfortunately, the wallet where the funds were collected was hacked, and $90 million was stolen. Despite this, the developers didn’t abandon their project. Instead, it was implemented at the expense of the remaining funds and additional funding.
When the project started, 10 million DOT were issued, but after a redenomination in August 2020 to make calculations easier, the number of coins increased to 1 billion. To date, the developers have managed to accomplish the best part of their plans, though the platform remains under development.
Polkadot’s architecture is quite complex. The key feature of the Polkadot project is that the network is multi-chain and combines many blockchains. This allows the system to simultaneously process a massive number of transactions, making it very scalable. Furthermore, any blockchain can be connected to this ecosystem through a special technology that was developed to combine various blockchains with the main Polkadot blockchain.
If significant changes need to be made to the system or an error eliminated, a fork isn’t required as it is with other cryptocurrencies. At the same time, the system has a high level of security thanks to a network of participants with various functions.
The project’s architecture consists of four key elements:
- The relay chain is the main chain. It’s a kind of ‘heart’ for the entire system, which provides consensus and interoperability between all existing blockchains.
- Parachains are blockchains that are connected to the system and work autonomously. They have their own tokens and functionality.
- Parathreads are blockchains that are similar to parachains but more cost-efficient. They allow payments to be made on a pay-as-you-go basis. Using these kinds of blockchains is practical if there is no constant need to connect to the network.
- Bridges are technological solutions that allow parachains and parathreads to be connected to external blockchains, such as Ethereum.
Furthermore, the system has several roles that network participants perform:
- Nominators select validators and receive a portion of the block reward. They also supply Polkadot tokens (DOT) and play a role in protecting the system.
- Validators verify transactions, protect the relay chain with DOT staking, validate collators’ evidence and participate in consensus.
- Collators create blocks on parachains, jointly select a block that demonstrates the chain’s current state and transfer it to the relay chain.
- Fishermen are participants who control the network and report unscrupulous validators. A fisherman can be a collator or any node of the parachain and can receive a reward by identifying violators.
The NPoS (Nominated Proof of Stake) protocol is used to ensure maximum network security. Nominators and validators pay the amount required by the protocol in DOT, which gives them access to perform their functions. At the same time, they receive remuneration for their work and are incentivised to do it well.
The DOT token, in turn, performs the following functions in the project ecosystem:
- Network management. Allowing token holders to control platform changes, which includes defining network fees and scheduling events, updates and fixes.
- Staking. For the platform to function and allow transactions, token holders’ active participation is required.
- Adding new parachains. DOTs will be unavailable for the duration of the parachains’ operation and returned once the parachains are removed.
Polkadot (DOT) price analysis
At the time of writing, the DOT token ranked 9th among cryptocurrencies by market capitalisation at $14,807,712,447.
DOT’s price history
During its ICO, the DOT token had a price of about $30. However, after the redenomination in August 2020, the price collapsed, as was expected. Shortly after this event, the token was listed on major crypto exchanges.
Polkadot price prediction 2018–2019
DOT was listed on crypto exchanges in August 2020 and was not traded before that date.
DOT technical analysis
DOT is in what looks to be an accumulation phase. The price has currently left the local rising wedge and is decreasing along the local dynamic resistance level. At the same time, strong dynamic support and resistance levels are forming a falling wedge. As such, it makes sense to take a position either from the lower border of the falling wedge and close when it reaches the upper one or wait until the price breaks the falling wedge upwards.
The nearest horizontal support level is $10.50. The notable horizontal resistance levels are $19, $26.50 and $32.
Polkadot (DOT) price prediction for 2021, 2022, 2023, 2025, 2030
As usual, we’ve compiled for you DOT price forecasts made by renowned cryptocurrency experts.
Trading Beasts’ DOT price prediction for 2021, 2022, 2023, 2025, 2030
According to the Trading Beast’ forecast, Polkadot’s price will decline in the coming months. Only after November will the price increase, reaching $14.788 at the end of 2021. After that, a gradual increase is expected; according to their estimates, DOT’s price will reach $48.122 by the end of 2024.
WalletInvestor’s DOT price prediction for 2021, 2022, 2023, 2025, 2030
WalletInvestor disagrees with Trading Beasts’ forecast and believes that the price of Polkadot will not decline. According to their analysis, the price will be $34.58 at the end of 2021, $74.90 at the end of 2022, $114.32 at the end of 2023 and $194.73 at the end of 2025.
LongForecast’s DOT price prediction for 2021, 2022, 2023, 2025, 2030
LongForecast agrees with Trading Beasts that DOT’s price will go down by November before it starts rising. Their forecasts differ only in specific numbers. According to LongForecast’s calculations, the price will be $9.27 at the end of 2021 and $19.03 at the end of 2022. Their longer-term forecasts show price stagnation at around $18.50.
DigitalCoinPrice’s DOT price prediction for 2021, 2022, 2023, 2025, 2030
DigitalCoinPrice predicts a gradual rise in Polkadot’s price over the coming years. According to their forecast, the token will cost as much as $28.93 in a year, $33.93 in 2 years, $37.24 in 3 years, $58.55 in 5 years and $60.59 in 7 years.
Polkadot (DOT) overall future value predictions
Polkadot is a very ambitious project aimed at transforming the very structure of the global network. Many experts consider it to be a revolutionary solution that could completely change the blockchain industry. Moreover, the project has several advantages that increase its attractiveness for investors:
- An experienced development team led by one of the most famous and influential personalities in the blockchain industry
- A focus on solving the real-world problem of the interaction between different blockchains
- The project’s ability to be scaled infinitely
- No need for forks to make changes and updates to the system
- A high degree of decentralisation and security
- Open-source software code
At the same time, the project doesn’t have significant disadvantages. One drawback is the project’s complexity, which can be an obstacle for developers who want to connect their blockchains to the project.
Will Polkadot go up?
The prospects for all crypto coins are highly dependent on the state of the crypto market, and Polkadot is no exception. As such, if the crypto market continues to grow, the Polkadot token is most likely to go up, as well.
How high can DOT go?
If the crypto market sees a new bull run, the DOT token’s price is very likely to reach $32 and possibly even exceed its all-time high.
Polkadot price prediction today
The coin is in an accumulation phase that will last for some time. A break upward from the falling wedge will be a strong positive signal.
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