Polkadot coin price prediction: Can DOT go up?
It is never the easiest thing to do, but can we make a polkadot coin price prediction?
Contents
- What is polkadot coin?
- How does Polkadot work?
- From the Polkadot white paper
- Polkadot price history
- Polkadot coin price prediction
- FAQs
The polkadot coin, or DOT coin, is a cryptocurrency with a decent number of supporters and enthusiasts. Before we take a look at the kind of polkadot coin price prediction people are making, let’s see what polkadot is.
What is polkadot coin?
The DOT coin is the native token of the Polkadot blockchain, which was founded in 2016 by the Web3 foundation. This Swiss-based non-profit organisation’s founders are Ethereum co-founder Gavin Wood, blockchain researcher Robert Habermeier and technology director Peter Czaban.
The idea behind Polkadot is to create a blockchain that helps support other blockchains that users create themselves.
Polkadot itself sustains two types of blockchain. There is the main one, called the relay chain, on which transactions are permanent. The other type of chain is called a parachain. These chains are created by Polkadot’s users and link into the relay chain, allowing the user-created ones to benefit from the main chain’s security.
How does Polkadot work?
Polkadot uses a modified form of the Proof-of-Stake (PoS) consensus called the Nominated Proof-of-Stake (NMoS). This means that someone who stakes the native coin, DOT, can validate data, nominate people to serve as validators, police the network or help organise parachain history.
DOT holders can use their coins to vote on changes to the network, elect council members (who have certain voting privileges) and even support a technical committee nominated by the council. The coin can also be purchased on a variety of exchanges, including Dzengi.com.
DOT ended up redenominating itself in August 2020. This meant that the price was, in effect, reduced by 100 times. While this might seem disastrous at first, it did not affect anything. While the price went down, the amount of DOT people held went up 100 times, meaning no one missed out financially and everyone owned the same amount of the network as they did before.
In terms of supply, as of 4 February 2022, there are 987,579,314.96 DOT in circulation out of a total supply of 1,103,303,471, or 89.5%.
From the Polkadot white paper
The “Polkadot: Vision for a heterogeneous multi-chain framework” is 21 pages long and was published in 2016, and outlines the technical vision and rationale behind the protocol's development.
The white paper explains: “Blockchains have demonstrated great promise of utility over several fields including ‘Internet of Things’ (IoT), finance, governance, identity management, web decentralisation and asset-tracking.”
It goes on to address five key failures in “significant real-world deployment of the present technology” including scalability, isolatability, developability, governance and applicability.
Differentiating itself from other protocols: “Participants work in enlightened self-interest to create an overall system which can be extended in an exceptionally free manner and without the typical cost for existing users that comes from a standard blockchain design.”
Polkadot price history
Before we look at polkadot price predictions, let’s have a look at the crypto’s history. While past performance is not an indicator of future results, it does give us some context if we are going to make a polkadot crypto price prediction.
When polkadot as we know it came on to the general market in the summer of 2020, it was worth around $2.75. For instance, on 20 August that year, it opened at $2.79 before dropping down to $2.69, which remains the all-time low for the crypto.
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There was some growth during the rest of the year and it broke through $3 on 21 August, then $4 on 22 August, $5 on 25 August and $6 on 26 August, meaning it doubled in value over the space of just five days. It then hovered between $4 and $6 for most of the rest of the year, but shot up during the last few days of 2020, closing on 31 December at $9.29.
Polkadot was one of the many cryptocurrencies caught up in the crypto boom of early 2021. Firstly, it broke through $10 briefly on 3 January, then it went up by a considerable amount, closing on 13 January at $10.96 and finishing up the following day at $14.54, a rise of more than 32% over the course of 24 hours.
Another major milestone occurred on 3 February, when the coin went up to about $20 for the first time and on 13 February it topped $30 in intraday trading. It mostly traded above $30 for the rest of that month and throughout the next, and on 2 April it closed at $41.16.
The first half of April saw DOT stay above that mark, but on 18 April it lost more than 23% of its value, tumbling from $43.11 to $32.87. It spent periods below $30 on 24, 25 and 26 April, but the price then re-emerged above $40 on 12 May before shooting to an intraday high of $49.69 on 15 May.
The coin then suffered during the great crypto day crash of 19 May, dropping by nearly 55% from $41.34 to $18.64. There was some recovery over time, but first, it had to experience a bearish period, dropping to an intraday low of $10.69 on 21 July.
Fortunately for the coin, a crypto recovery saw it reach $30 on 31 August for the first time since 19 May and, on 31 October 2021, it was trading at around $41.78. By 4 November it had reached a new all-time high of $55.
However, December was a difficult month for cryptocurrencies, with bitcoin falling by 19%. DOT was no exception, and by 31 December the coin was trading at $26.72.
The struggle continued into mid-January, by 24 January, the coin was worth $18.23. There was a slight recovery to $20.16 by 4 February 2022, trading up 8.54% from its previous close.
But what of the future? What sort of polkadot coin price prediction can we make? Let’s take a look.
Polkadot coin price prediction
WalletInvestor predicts that DOT coin will reach $37.86 in a year’s time and $118.41 in five years.
DigitalCoinPrice’s DOT coin price prediction 2022 says the coin will reach $30.10 in April 2022. The coin will hit $29.89 in February 2023 and stand at $36.66 a year from that. By February 2025, the site’s DOT coin price prediction forecasts that it will be up to $45.40, before going down to $35.78 in February 2026 and up to $44.58 a year after. It suggests the price will be $69.49 in February 2028, and it believes, 12 months on from then, the polkadot coin price will be $88.45.
Finally, Gov.capital has a polkadot price prediction of around $117.56 in a year’s time and $917.15 in five years. The site believes that in 2023 the coin will break the $100 mark in February, and the $200 mark in November.
FAQs
There is a total supply of 1,103,303,471 DOT coins, of which 987,579,314.96 (89.5%) are in circulation.
There is no definitive answer. Whether you think DOT is a good investment or not depends on whether you think it will go up and, if so, by how much, and how soon it will get there. Since cryptocurrencies are highly volatile, you ultimately need to do your own research.
It might do. Certainly, the long-term predictions for DOT are rather bullish. Nevertheless, you do need to be cautious, because prices can go down as well as up, and predictions are very often wrong. Before investing in any asset, always do your own research and remember that your decision should be based on your attitude to risk, your expertise in this market, the spread of your portfolio and how comfortable you feel about losing money. Never invest more than you can afford to lose and keep in mind that past performance is no guarantee of future returns.
If you want to buy DOT, then you can do so at a range of exchanges, including Dzengi.com. Just remember to do your research and never invest more money than you can afford to lose.
