Polkadot Price Prediction 2022: Is It Worth Buying DOT?

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Polkadot is currently the 11th largest cryptocurrency in the world. Although it narrowly misses the top 10 list, Polkadot’s $7.19 billion market cap puts it in the big crypto leagues, just ahead of dai, polygon, and shiba inu and just behind dogecoin, solana, and cardano.

As of September 22, polkadot is trading at $6.42. The token has seen recent turbulence, so it is not easy to make an accurate polka-dot price prediction.

Read: Looking to diversify in a bear market? Consider These 6 Alternative Investments

The first step is to understand how the token got to where it is today and what its designers are working towards in the future. Only then can investors start making a spot-on price prediction that can guide their decision to buy, sell, bet or fold.

Building Web 3.0: Polkadot and Parachains

Web3 Foundation is a Swiss organization that funds R&D teams working to build the infrastructure that will support web3. Its flagship project is Polkadot, which was launched in 2017 – one of its co-founders, Dr. Gavin Wood, was also involved in the creation of Ethereum.

The project aims to create a new kind of blockchain network made up of custom, application-specific subchains called parachains, which is short for parallelized chains.

The creators of Polkadot define parachains as “advanced, next-generation layer-1 blockchains that transcend the boundaries of legacy networks. Specialized and interconnected, parachains are a diverse ecosystem of independent platforms, communities, and economies enhancing the way we connect online.

Polkadot promises a new type of blockchain

Polkadot’s purpose-built, interconnected parachains all connect to a basic platform called the Relay Chain. Developers can use Polkadot to create a custom blockchain specifically designed for their app or service in minutes. Once their custom-built blockchain – or parachain – connects to the relay chain, creators can communicate and operate securely with all other parachains in the Polkadot network.

Polkadot allows cross-blockchain transfer of not just tokens, but any type of asset or data. Each chain governs itself independently, but follows the same security protocols. This framework gives Polkadot what its creators call unprecedented scalability, keeps its fees low, and makes the network energy efficient.

DOT is the grease in Polkadot machines

DOT is the native token of Polkadot, and it is used to facilitate core platform functions. The DOT has three main objectives:

  • Network governance: DOT holders have full control over the protocol, including managing exceptional events such as patches and upgrades, setting network fees, and determining auction dynamics and news scheduling. chains. With traditional blockchains, this type of governance is the exclusive right of miners only.
  • Staking: DOT is the mechanism that allows game theory staking to keep participants honest. Good actors receive the DOT and bad actors lose their bet.
  • Bonding: The DOT facilitates a proof-of-stake system that links tokens to form new parachains and strips linked tokens to remove unnecessary or obsolete parachains.

Now that you know what it is, here are some Polkadot price predictions.

Polkadot Price Predictions

Like so many cryptocurrencies, DOT peaked in November 2021 when it topped $54. Like so many other digital tokens, it crashed soon after and fell into the deep freeze of the ensuing crypto winter. It was below $40 before the end of the month, below $25 at Christmas, below $21 at the end of January 2022 and in single digits in May. It remains under $7 today.

This trajectory does not bode well for DOT’s outlook over the next three years, but this trajectory could change.

What will Polkadot be worth in 2022?

According to Daria Morgen, writing for crypto exchange Changelly, industry consensus predicted that DOT would trade at $6.62 in September, which is pretty close to reality so far.

Analyst consensus puts DOT higher at $7.23 by the end of the year in December – that’s a 19% return on investment – ​​and expects it to continue to rise. gain momentum in the new year.

What will Polkadot be worth in 2023?

Changelly’s projection for 2023 is that DOT will move into double digits and trade at an average of $10.14 over the year for an 89% ROI.

What will Polkadot be worth in 2024?

The projection for the next year in 2024 is that DOT will trade on average at $15.11 for a 178% ROI.

What will Polkadot be worth in 2025?

If Changelly’s reading of the industry consensus is correct, today’s investors who hold on to 2025 will enjoy impressive gains of 289% when DOT trades at an average price of 22.39. $.

Will Polkadot reach $100?

Changelly’s long-term polka-dot price prediction is that DOT will hit triple digits in 2029 when the token trades at an average of $103.73. However, with an investment as volatile as cryptocurrency and a token as young as DOT, a specific seven-year prognosis is difficult to take with more than a grain of salt.

That said, DOT was trading above $54 less than a year ago, so $100 over seven years isn’t a particularly outlandish projection.

Can Polkadot reach $500?

Trading Education used the projections of several leading analysts to outline a possible trajectory for DOT prices through the end of the decade. It is based on the premise that Polkadot and Ethereum will spend the 2020s locked in an intense and growing rivalry that will ultimately determine the fate of the two platforms’ native tokens, DOT and ETH.

If Polkadot emerges victorious in the race to create web3, Trading Education predicts that DOT will peak at $515.80 in 2030 – an increase of 837.81% from the current DOT high – before stabilizing at a 365-day average of $499.91.

Here, too, there are so many variables, so many unknowns, and so much time until then that the rivalry-fueled run to $500 by the end of the decade is little more than an educated guess. .

Is it worth investing in Polkadot?

An investment in DOT is an investment in the Polkadot network. Instead of relying on distant price predictions, investors might be better served by gauging their faith in the concept of interconnected parachains as the building blocks of Web3, the third iteration of the internet emerging right now.

It’s a complicated concept that requires significant research, but anecdotally there is evidence that at least some of Polkadot’s promises come to fruition.

New staking protocol and frantic developer activity spark optimism

One of the most promising developments is Polkadot’s growing role in the DeFi space. On September 18, a Polkadot parachain called Bifrost Finance tweeted out some numbers that sparked renewed interest in the DOT. Polkadot’s new staking liquidity protocol, called vDOT, had hit 121,551 tokens within the first 30 hours of launch. With a TVM – total money value – of $840,000, the combined APR on Bitfrost’s vDOT holdings increased by 60% – all in one day plus six hours.

Bifrost is undoubtedly the golden child of Polkadot, but the chain isn’t the only chain racking up Parachain progress. On the same day, Polkadot Insider tweeted that the developers of Polkadot absolutely crushed the competition and topped the charts for this week’s blockchain development activity.

Developers Polkadot had a total of 2,658.57, compared to 177.07 for #2 Ethereum and 99.07 for #3 Solana. Further in Polkadot’s rearview mirror were Algorand, Bitcoin, Near, Avalanche, Tron, Fantom, and BNB.

If you are considering an investment in DOT, it should be based on this type of platform momentum rather than hypothetical long-term price projections. Suzuki Shillsalot, writing for AMBCrypto, predicts that these developments will soon bring DOT back into double digits.

Don’t Ignore the Headwinds Polkadot Faces

The recent accomplishments of the Polkadot network are impressive, but resist the urge to invest in DOT wearing rose-colored glasses. The crypto winter has been brutal for all, but DOT has proven particularly vulnerable during the ongoing bear market.

On September 22, AMBCrypto reported an unpleasant development that potential DOT investors would be wise to consider in their decisions. When the token fell to $6.25 that day, it represented an ugly 12.5% ​​weekly loss, which AMBCrypto writer Kanav Jain called “a big red alarm for investors who have felt the heat of the market for most of the third quarter.”

Final take

Polkadot is an exciting and well-funded project started by industry veterans who were pioneers in cryptocurrency. It – and its native token DOT – has the potential to make the promise of web3 a reality. But it’s not the only one.

Before investing in DOT, learn as much as possible about the Polkadot project, but also learn about its main competitors. According to Craft Data, these include not only Ethereum, but Cosmos Network, Wanchain, and SKALE Labs.

If DOT is worth a look, their native tokens might be too.

Information is accurate as of September 22, 2022 and is subject to change.

Our in-house research team and on-site financial experts work together to create accurate, unbiased and up-to-date content. We check every stat, quote and fact using trusted primary resources to ensure that the information we provide is correct. You can read more about GOBankingRates processes and standards in our Editorial Policy.

About Kristina McManus

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