Polkadot Price Analysis: Things You Need to Know

Polkadot Price Analysis: Things You Need to Know

Polkadot price skyrocketed along with the rest of the crypto market in February 2021, showing a 353% increase compared to the beginning of the year and reaching $42. The peak price that the DOT coin reached was $53.99 in November 2021.

Such price growth begs the questions, why Polkadot has gained such popularity, and whether it’ll rise to such price again.

Polkadot: Overview

The Polkadot network was created in 2017 by Gavin Wood, the co-founder of Ethereum. The project was developed by the Swiss Web3 Foundation, which set itself the goal of a fully decentralized web.

The Polkadot project was designed to support various sub-chains (parachains). It is gaining popularity as it aims to decentralize the internet by connecting blockchains and allowing them to interact with each other. They also allow the creation of new applications and include decentralized finance (DeFi) services.

Polkadot’s coin is called DOT. It is a digital token that the network uses for:

  1. Staking — the process of receiving cryptocurrency as a reward for holding funds in a digital wallet to keep the blockchain running.
  2. Linking, or bonding. It involves blocking a certain number of tokens for a certain period. The tokens are used by the Polkadot community to manage changes on the network.
  3. Governance over the network.

Unlike other cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH), Polkadot can be updated to fix bugs or add new features, and it does not require “hard forks,” so onboarding is easier.

Polkadot: Ups and Downs

The successful ICO of Polkadot took place in October 2017, when it raised over $140 million by selling more than 10,000,000 DOT.

Polkadot price analysis predictions started trading at $5.20 in mid-September and then fell sharply. It plummeted around the first half of October 2020, trading at $4.42 before dropping further to $3.86 in mid-October. By the end of October, it was worth about $4.15. However, the receding pandemic caused the coin's value to rise, and the DOT price started its upward movement from $5.88 in November 2020.

In 2021, Polkadot saw a huge rise as the price of DOT surged, pushing its price up to $47 in the middle of May. After that, the price of Polkadot faced a bounce and fell by about $11 in a month. However, the DOT coin regained some lost momentum and hit an all-time high of $55 in November 2021. Polkadot later faced significant selling pressure and has continued to trade bearishly.

In 2022, Polkadot started trading at $28. However, after a month, it dropped to around $19. All these happen after DOT reached its ATH in November 2021. Its price has been fluctuating since the beginning of 2022 and is currently trading at the price of $5.59 (November 19, 2022).

Price Predictions of Polkadot

Polkadot is ranked to be among the top 10 cryptocurrencies on different exchanges. Price analysis has a capitalization of $18,469,959,443. The overall analysis of different experts is that Polkadot (DOT) had no obstacles to rising in price and outperforming its competitors.

For example, DigitalCoinPrice gives Polkadot an optimistic outlook. Their analysts believe that next year it may rise to $75.08. If we talk about the longer term, the analysts expect growth to $158.97 in 2028. Also, in its future DOT price prediction, Coinpedia expects the price to reach around $120-$150 by 2025. By December 2025, Polkadot is likely to cost $170-$200.

Even though Polkadot went through many ups and downs, it is believed that its forecast will exceed the expectations of all cryptocurrency investors. It is expected not only in terms of its price but also market capitalization. Especially since people found this platform extremely interactive and simple.

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