In the cryptocurrency market today, Bitcoin is the rising tide and altcoins are the boats that are rising with it. However, Bitcoin is a decade-old technology, and other protocols already have more prospects to offer. One of such up and coming projects with an ambitious goal is Polkadot. Is DOT a good investment? What exactly makes it a worthy addition to the portfolio? We’re here to answer these questions and give a DOT price prediction for the years to come.
What is Polkadot and DOT?
Polkadot is a Web 3.0 protocol designed to enable blockchain interoperability. It unites independent blockchains into a system in which they can interact with each other. More than that, on Polkadot data of any type can travel between and on blockchains. Polkadot itself is a sharding blockchain which allows for creation of parachains.
The research and laying out the design started back in 2016. The groundwork was being laid until 2020, when the network finally launched. The founders of the project are cryptographer Robert Habermeier, Ethereum co-founder Gavin Wood and Peter Czaban.
This is a fundamental feature for the Web 3.0, a new standard of decentralized global network. To achieve this, Polkadot itself has to scale and be decentralized. Even now, it can do the job sufficiently but to enable future changes, the network is governed by a DAO. In this decentralized organization DOT represents voting power. The DOT token is also needed to create parachains with separate rules.
DOT balances were unlocked in a planned update on August 18, 2020. By that time, the coin holders were evaluating the project to have almost $5 billion in capitalization. DOT started right in top-10.
For the majority of 2020, it was being traded in the $4–6 range. In January 2021, the Bitcoin rally finally took it off. In that month, it rose from $8 to $16, doubling in price. In February, it accelerated the growth, closing at $36. The current ATH of DOT is $42.06 on February 20, 2021.
The price of DOT today is $36.12 (at the time of writing). Its market capitalization is $33,031,486,088 which puts it at rank #6 on CoinMarketCap.
What influences the price?
Polkadot’s utility can be heavily improved depending on the composition of the Polkadot ecosystem. The more components there are, the more use cases the system can potentially cover. Some of its current protocols include Ren (“wrapping” assets) Ontology (data and identity), Ocean Protocol (data marketplace) and Polymath (security token platform).
The bridge to Ethereum network, which is in the works, would significantly boost the development of the Polkadot system. It will help DeFi protocols migrate to a currently more scalable platform.
Plenty of products for Polkadot are developed by independent companies and teams. In the 2020 roundup, Gavin Wood estimated the number of these teams to be around 50. Web3 Foundation, the non-profit backing up the launch of Polkadot, has given $145 million in grants.
As seen above, in 2020 Acala, SelfKey, Figment Network, Swisscom and AirGap are some of the companies that received funding for development of the Polkadot ecosystem.
Polkadot has one of the best fundamentals among the top coins on the crypto market. The research it is based on is done by prominent cryptographers and programmers (like Habermeier and Wood). The development is continued by the teams who have proven their names in the blockchain industry: Interlay, Chorus One, Chainlink. The network itself is covering the ever-expanding number of use cases via participating protocols. All this makes DOT the investment which gained the attention of the most well-known companies in the investment world. Which exactly? Find out in the next section!
Latest Twitter posts
— Johnny (@CryptoGodJohn) February 26, 2021
User Johnny shared with his followers a piece of news about new trusts of Grayscale. Among the assets the company would like to offer to their clients is DOT.
Here you go guys MASSIVE NEW FOR $DOT MUST READ!!!!!!!!! Get in to $DOT is and going to continue to climb. $DOT IS massive guys. This project is ready to break boundaries. Amazing!!!! look this up guys very bullish for $DOT. pic.twitter.com/N7Z1nWD8DS
— CryptoWill ($DOT, $GRT, $BAND, $ETH) (@CryptoWill_AZ) February 27, 2021
But that was not it. As CryptoWill points out, DOT is also in the portfolios of such companies as JPMorgan and Goldman Sachs.
You can also notice the ascending pattern. Definitely should see it happen soon pic.twitter.com/SU1odf0N61
— Devchart 👨🏻💻 (@devchart) March 2, 2021
Devchart posted an analysis of the 4h chart of DOTBTC claiming it is about to break out. In a bull run of Bitcoin, it means DOT might outperform BTC in the short term.
Polkadot Price Prediction 2021
Coinpedia DOT Price Prediction 2021: $50–70
Coinpedia authors think that the bull run of early 2021 has all the chances to continue well into that year. By December 2021, they give a target close to $50. If a mid-year surge they predict does occur, the target will move up to $70.
InvestingCube DOT Price Prediction 2021: $50
Crispus Nyaga of InvestingCube gives a bullish short-term prediction for DOT in March 2021. If it can break out of a descending channel, the resistance bulls should aim for lies at $50.
FXLeaders DOT Price Prediction 2021: $50–100
Due to the rally taking DOT up, FXLeaders predict that DOT will reach $50 or even $60 in the first half of 2021. The growth is fuelled by the positive sentiment, ETH and alts performance and USD devaluation. Their year-end target lies around $100.
DOT Price Prediction in 2022–2024
LongForecast Polkadot Price Prediction: $125–128
The Longforecast agency predicts in a year, in March 2022, the price of DOT will be $128.8. However, until 2023, there will not be any significant growth. In April 2023, DOT is forecasted to be trading on average at $125.13. The opening price of DOT in 2024 will be $125.23, and the year will close with it at $125.35.
DigitalCoinPrice Polkadot Price Prediction: $56–108
The DigitalCoinPrice agency analysis forecasts great volatility for DOT. In 2022, the price will have the range of as high as $71.30 and low as $56.88. 2023 will open with DOT at around $83.48 and close $76.04. Throughout 2024, the price can spike up above $100 and dip to $73.42.
DOT Price Prediction for 2025
What will Polkadot be worth in 2025? Lukas Weisflecker for Coinmonks gives an estimate of $40 in 4–5 years. But wait, it is worth around the same now? Let us explain.
We are in the middle of a rally. The observations until now show that most likely, the crypto market moves in cycles of ups and downs. In 2025, the market might be in the low phase. Moreover, DOT is inflationary, and the emission amounts to 10% each year. These factors make the price target of $40 in five years realistic rather than bearish.
There are more bullish DOT price predictions out there based on the current situation, though. Coinpedia writes: “In 2025, the prices are expected to rally close to $120 to $150. 2025 would end by bringing the DOT price to somewhere around $170 to $200 in December 2025.”
Polkadot Price Prediction 2030
Cryptocurrencies are known to be volatile. Even the stock and forex market predictions cannot account for any event that will have the influence on the price. We can expect the Polkadot network to massively increase in value but supply will also almost double in ten years. Elevenews gives a prediction that in 2030 DOT will grow from $48.30 to $77.45.
DOT Price Prediction 2021–2030
DOT Price Prediction from ChangeHero
Is Polkadot a good investment? Considering the technological and groundbreaking potential it has, the fundamentals make it a great choice for a long term. With the onset of Web 3.0, Polkadot is set to become one of the leading platforms. However, it is worth remembering that DOT is inflationary and designed to be actively utilized on the platform. If you are experienced with trading, you can capitalize on rallies like the ongoing one. If you are looking for long-term returns from DOT, it is an even more solid option.
Can Polkadot reach $100? ChangeHero team agrees with the experts cited above that DOT can reach $100 in 2021. It is better to be prepared that in the longer term it can be worth around $70–80.
How to get DOT on ChangeHero?
If you own some crypto, you can exchange it for DOT on ChangeHero in five simple steps:
- Choose the currencies on the home page, amounts and the type of exchange. Provide your wallet address in the next step and check the amounts;
- Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
- All done? Now we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives.
- As soon as the exchange has been processed, your DOT is on the way to your wallet.
Our support service is available anytime in the chat on our website or through the email: [email protected].
And if you did not have any crypto to buy DOT with, don’t worry — you can also do it on ChangeHero with a credit card or bank transfer!
Polkadot is one of the most promising crypto projects with solid development and genuine community. If there are projects aimed at real change and not a quick buck fad — Polkadot has to be one.
We are supporting the Polkadot community on the road to Web 3.0 and will be sharing news about it in our blog. Sign up for ChangeHero’s updates on social media: Twitter, Facebook, Reddit and Telegram.
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This article is not a piece of financial advice. No price prediction is guaranteed to provide exact information on the future price.
When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment. Always make sure to stay informed and be aware of those risks. Consider investitions in cryptocurrencies only after careful consideration and analysis and at your own risk.