On 20th September 2021, global investment manager, VanEck has officially cleared approval to list Solana (SOL), Tron (TRX), and Polkadot (DOT) backed exchange-traded notes (or ETN) on the largest European stock exchange, Deutsche Börse. The crypto ETN products will further extend the investor base of these coins to the mainstream financial markets in Europe, including Zurich, Paris, and Amsterdam. Exchange-traded products have become a common way for institutional investors to participate and gain exposure in the cryptocurrency market.
Two weeks ago, DOT/USD has been trading within a moderate range of $29.27 – $32.79, thereby suggesting the presence of moderately distributed volatility over the last 24-hours. The total trading volume for DOT dropped by 3 percent and totals $2.67 billion. Coin Market Cap ranks Polkadot at position #9 overall with a total market capitalization of $31 billion.
Then again, Polkadot price action has developed substantial bullishness over the last month after rallying by 175 percent from $10.5 to $32. DOT/USD is yet to gain more upsides in the course of the days and potentially retest another support higher. As we go to press, In the last 24 hours, Polkadot (DOT) has fluctuated between $33.6 and $34.91, indicating low volatility over that period. Volumes have decreased by 22.93 percent to $1.37 billion, while the overall market capitalization is around $32.2 billion, retaining 9th place overall.
What is Polkadot?
Polkadot (DOT) is one of the newcomers in the cryptocurrency ecosystem. Created by Ethereum co-founder Gavin Wood, Polkadot is a heterogeneous multichain interchange blockchain that uses customized side chains to operate its system. The team came up with the idea for developing Polkadot cryptocurrency while Ethereum 2.0 sharding was set.
The whitepaper for the Polkadot was released on November 14, 2016, with the first token sale in October of 2017, which raised almost 500 thousand Ethereum. The main idea for Polkadot is to change the cryptocurrency world by creating a decentralized framework that allows building blockchains and easily use decentralized finance benefits.
Since then, Polkadot cryptocurrency has become one of the leaders with a market cap approaching the $24 billion mark, ranking 9th place overall. The Polkadot price is trading at $24.65 and has reached an all-time high price of $49.69.
Polkadot is top of the list of newcomers that uses multichain sharding protocol to run its system. This process allows for cross-chain transfers of data, making several blockchains interoperable. DOT cryptocurrency effectively connects public and private blockchains, enabling sharing and improving scalability and governance. Thus, this cryptocurrency serves three primary purposes – system governance, operation, and the creation of parachains.
In addition to these three primary functions, it aims to solve price customization, interoperability, and upgradeability. Slow transaction speeds remain a significant concern in the blockchain ecosystem.
Since the Polkadot ecosystem acts as a multichain system allowing parallel process transfers across different individual chains, paving the way for mainstream global blockchain adoption. It can speed up the number of interactions that are taking place.
Different projects have different needs and requirements. Therefore, the need for customizability is of paramount importance. Polkadot offers customization features that allow design optimization for individual chains to suit the project’s needs better. In addition, addressing the lack of interoperability between multiple chains can pave the way for an entirely new financial ecosystem, enabling seamless transfers between different projects and applications.
Let’s take a look at its basics. Polkadot consists of four main components, with the main being the Relay Chain. The relay chain is the heart of its protocol. The relay is responsible for the system’s shared security, consensus, and cross-chain interoperability; hence, transmission and transaction blocks are completed.
The Relay Chain runs minimal operations at its interface with the mechanism, parachain auctions, and nominated proof-of-stake (NPoS). Its lighter functionality base affords the Relay Chain more incredible speed to process the new transaction. This unique method has seen this coin process 1,000 transactions per second (TPS). Next are the so-called Parachains or parallel chains.
Parachains are standalone, independent blockchains hosted on this blockchain platform. These custom blockchains are built to achieve specific purposes and address technical challenges. They leverage Polkadot’s price computing resources to validate the accuracy of exchanges done on the system. In addition, parachains are granted the freedom to develop their governance systems while using Polkadot’s shared security feature.
The third is the Parathreads which are parachains built on a pay-as-you-go price model rather than by leasing a slot. Parathreads are primarily suitable for projects that don’t require continuous access to the system.
Finally, the fourth component is Bridges, which connects parachains and parathreads with external networks like Bitcoin. Bridges expand the interoperability of the system.
|Coin||Symbol||Price||Marketcap||Change||Last 24h||Supply||Volume (24h)|
|DOT||$ 45.67||$ 47.64 B||2.71%||1.04 B||$ 2.31 B|
Polkadot Network & Signals
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Polkadot price history and technical analysis
When looking at the Polkadot price action over the past years, we can see that its price has been heavy since the beginning of 2021. After spending most of the second half of 2020 trading around $4-$5, the price broke above the previous all-time high of $7 on December 29 and quickly reached the Polkadot price projection of $10.
This Polkadot prediction allowed more crypto bulls to jump into the bullish trend, leading to another push after a retest of the $7 mark as support. On January 16, the DOT reached the highest day price of just over $19. From there, the bullish momentum paused for several days, and the Polkadot price consolidated for more than a week with an average Polkadot price prediction of around $17.
Around the time, the DOT price increased for many analysts, creating more interest for the Polkadot ecosystem. Polkadot forecast frequently mentioned the $40 mark as the next target for the following weeks.
On April 3, its price finally set a clear higher and briefly reached the maximum of $46.74. However, the further upside was quickly rejected, and the momentum promptly reversed to retest the previous all-time high of $40 as a support.
As we can currently see that the Polkadot price equal $24.5, and it was trading below the 50-day and 100-day Moving Averages and broke out from the lower end of the Bollinger Band. It is now traversing towards the lower end of the Band. DOT price appears to be correcting some of the gains, but it could be that the market’s overall sentiment is changing to a bullish scenario.
Pros and cons of investing
There are endless advantages that come with cryptocurrency market investments. For one, the ability to send any data across the blockchain revolutionizes the sector. Furthermore, you could transfer across public, open, permissionless blockchains and leverage the best characteristics of each network.
In this way, Polkadot introduces a new era in scalability, interoperability, and security. In addition, the firm’s flexible and adaptive architecture facilitates building technology, including smart contract platforms. In this way, developers can build next-gen applications that get permission from a private blockchain and use it publicly.
The Polkadot projection has shown a lot of potentials. In the third quarter of 2020, DOT hit the stock market at an all-time low of $2.69. In seven months, its Polkadot forecast is up more than 1,200%. This growth is enticing to investors looking to see a return on their investments. Some investors see DOT as an inevitable progression of cryptocurrency.
It’s the next step in improving blockchain technology. Moreover, it’s a scalable business model, leaving lots of room for growth. For investors, business growth means an increase in valuation. Therefore, the biggest pro for investing in DOT is the rise in its popularity and large size. According to many coin price predictions, the price will reach the $100 mark in the upcoming months, meaning a total market capitalization will rise to 107 billion.
As of now, there are several similar blockchain projects to Polkadot. Best-known is Uniswap, which has already reached the market cap of $16 billion and ranks in 10th place overall. However, this pro is also a con for the system, as investing in a much smaller Uniswap could mean a substantially higher DOT prediction price over the following months.
Investing in anything new carries risk, and that includes the Polkadot coin. While something can happen to any of your investments, some coins are considered safe due to their stable price projection over time. If a token has a track record for steady growth or maintains its market worth over many years, it may be considered a safe investment. However, Polkadot will not be liable for any action taken in reliance thereon.
Market prediction for Polkadot price 2021
Polkadot’s price prediction is bullish overall for 2021. Although the DOT faced an all-time low of about $2.70 in 2020, shortly after that period, DOT emerged to be one of the most profitable investments in the blockchain world, with steady growth by the year-end. DOT is currently traded at a maximum price of $20.9 and has continued to rise daily.
It is estimated that the DOT will trade at the maximum price of $50.68 by the end of 2021. Thus, the token’s potential is indisputable, and many analysts and traders can see the potential in long-run trading.
DOT has gathered momentum over the months due to overall interest in the rapid development of the decentralized ecosystem. As a result, Polkadot price prediction might surpass the expectations of all cryptocurrency investors in terms of price and market cap.
Therefore, let’s take a look at other Polkadot price forecast prices right now.
Polkadot price prediction from TradingBeasts
TradingBeasts, known for its detailed Polkadot price prediction articles, came up with a comprehensive monthly Polkadot prediction for the rest of 2021. The DOT prediction for September is pegged at $19.241 at its minimum price and $28.295 at its maximum price.
TradingBeast projects DOT will trade at the minimum price of $18.960 and the maximum price of $27.883 in October. However, the DOT prediction for November is not entirely optimistic as DOT is projected to trade at $18.461 at its minimum price and $27.148 at its maximum price. The pessimistic view is further projected in its December DOT prediction, as it reveals DOT will trade at $17.713 at its minimum price and $26.048 at its maximum price.
According to TradingBeasts, the Polkadot price prediction is set at a maximum price of $46.481 for 2022 and $77.324 for 2024. The minimum price is set at $16.564 for 2022 and $44.895 for 2024.
Polkadot price prediction from Wallet Investors
Wallet Investor also has a bullish Polkadot price prediction; by the end of 2021, they expect DOT to reach $59.9. Further, in five years, the Polkadot price prediction from Wallet Investor is optimistic. According to their Polkadot prediction, DOT will hit a price set at $146.7.
This is an interesting take compared to the DOT latest forecasts of the other two.
Polkadot price forecast by Longforecast
The Polkadot price forecast by Longforecast is down below:
Cryptopolitan’s verdict on Polkadot
We have a very bullish Polkadot price prediction for DOT tokens in the upcoming years. Let’s look at the current Polkadot price prediction and compare other crypto outlets’ minimum and maximum prices.
Polkadot price prediction 2021
From $5 price at the start of 2020 to $45 price at the beginning of April confirms an 800% growth in price where percentage increase is given by the formula increase divided by original number multiplied by 100. Therefore, we have a bullish prediction for the remainder of 2021, with a target of over $100 to be easily reached in the upcoming months. Projecting the same increase happening over the months, DOT/USD could be priced around $400 by the end of 2022 or 2023. This projection is very optimistic and discounts the volatility of crypto.
Polkadot price prediction 2023
Polkadot price prediction for 2023 is also bullish unless we see the overall market struggling to set new highs price and Bitcoin price prediction becomes bearish. Considering DOT forecast price achievements so far, we expect a further increase from the minimum price of $200 to the maximum price of $400 if the market doesn’t experience a collapse. If the rally this year continues and reaches the $100 mark, we should see DOT reach the maximum price of $500 before the year ends.
Polkadot price prediction 2025
2025 Polkadot price prediction largely depends on the overall market price cycle. If the DOT market price reached above the $100-$200 mark later this year, we could expect to exceed the maximum price of $1000 over the following years. This DOT price target will likely be reached during the next bull price cycle, as it is unlikely that the current price cycle will continue until 2025.
Digital coin puts the coin price in 2025 at $111.62, $130.48 in 2026, $149.47 in 2027, and $166.76 in 2028, as shown in the above chart.
Polkadot is currently one of the most innovative projects in the cryptocurrency market. The solutions they provide certainly allow the entire crypto market to grow faster and much more sophisticated.
Decentralization is a vital part of this blockchain system, and users know about it. Its users know about it and can quickly become part of the system through staking and other activities.
This coin represents a novel way in which blockchain networks can cooperate. It also shows that it is possible to offer scalable blockchain solutions that are easy to improve, implement, and adapt to different protocols.
Polkadot (DOT) trades at a maximum price of $21.30, with a market cap of over $20 billion, ranking the coin in 9th place overall. Despite the price disruption in the second quarter of the year, the DOT prediction has shown DOT is the best-performing token this year. It had already increased in price almost ten times since the beginning of 2021, when it traded at the maximum price of $5.
Therefore, we predict further price growth over the following months, with the next primary target set between the maximum $80. Further, by the end of 2025, the token can reach the $500 maximum price mark and more. You can buy Polkadot based on this price prognosis from any exchange.
Is Polkadot better than Ethereum?
Polkadot has outperformed Ethereum so far this year. Therefore, in terms of returns, DOT is better than Ethereum. Additionally, according to Polkadot price prediction, DOT is set to become a severe competitor to taking Ethereum’s slot as the number two cryptocurrency if the current DOT bullish momentum continues.
Is it profitable to invest in Polkadot?
Since the start of 2021, Polkadot has increased almost ten times, meaning that it indeed has been a very profitable venture. If the cryptocurrency market continues increasing its capitalization, we should see DOT/USD grow further.
Is Polkadot a profitable investment?
Looking at the current crypto market, in the first quarter of 2021, where nearly all the cryptocurrencies are rising to staggering heights, it is easy to believe that this bullish trend will continue like this forever. However, no one predicted the upset in the latter part of the second quarter.
No person can accurately predict what the rest of 2021 holds for Polkadot. But as always, there are both optimists and pessimists. Some believe that the whole market will hit rock bottom again at some point, while others believe it is better to invest now than never.
But if we are to follow the DOT price forecast and price prediction. Polkadot is one of the best investments in the cryptocurrency field that can reach above $100 later this year. In addition, the DOT total capitalization will likely soon overtake both Ripple (XRP) and Binance Coin(BNB), placing the coin in 3rd place overall.