On September 7th, El Salvador announced that Bitcoin was now legal tender in the country. Consequently, the price of Polkadot’s (DOT) token dropped by 18%. Before the drop, DOT had been on a steady rise since May and was trading at its highest since the last weeks of July.
In this article, we look at DOT’s market value as of 2021 and beyond.
What is Polkadot?
Gavin Wood, a co-founder of Ethereum, created The Polkadot network in 2016. He used the Switzerland-based Web3 Foundation to develop the project. He used this technology because it’s the future of the internet which will eventually decentralize the web.
The project’s objective is to connect blockchains and allow their interaction, hence decentralizing the web. This will enable the development of various decentralized finance (DeFi) services to come up. The beauty of decentralized platforms is that users have more online control over their personal data instead of giant conglomerates.
DOT as a cryptocurrency applies in crypto-funds, e.g., Polychain Capital, to stack, bond, and govern their operations. Stacking is where you receive cryptocurrency as a reward when you hold funds virtually to support blockchain operations. Bonding is when you lock a given number of tokens for a specified time frame. Whenever changes need to occur on the network, they use DOT tokens to make those decisions.
Many developers appreciate Polkadot as a cryptocurrency because it is easy to troubleshoot and fix bugs. This can easily happen without needing to spinoff or hard fork the whole project.
Polkadot Crypto Target Prediction
Polkadot is currently trading at $20.9 (subject to change) and should continue to rise. Analysts predict that DOT will reach its maximum price of $50.68 by the end of the year. Its growth potential is inevitable, therefore a good coin for investing this year.
Its momentum is because developers are showing an interest in its contributions to developing decentralized ecosystems. As a result, the growth of the coin in the current market might be even higher than predicted.
According to TradingBeasts, the minimum price prediction for DOT is $16.564 by the end of 2022 and a maximum of $46.481. BY 2024, the forecast stands at a minimum of $44.895 and a maximum of $77.324. These are just predictions from one online forecasting service. Others include CoinCodex, WalletInvestor, DigitalCoin, PricePrediction, etc. You can visit their websites to see what their predictions are and technical analysis of the same.
While the data seem very promising, it’s important to note that crypto is very volatile. Many factors determine the price of any coin in the market; hence accuracy is hard to guarantee. Before buying Polkadot or any cryptocurrency for long-term investments, you should do your research. Make sure you keep tabs on real-time technical analysis, news, market trends, and expert opinions.
Analysts might differ in their predictions, but they all agree that Polkadot is a good investment for long-term investors. It is already showing promise with this upward tends and in the long run, it’s going to be trading higher in the markets.