Polkadot (DOT) is one of the newcomers in the crypto ecosystem. Created by Ethereum co-founder Gavin Wood, Polkadot is a heterogeneous multi-chain interchange blockchain that uses customized side chains to operate its network. The idea for developing Polkadot cryptocurrency came into existence while Ethereum 2.0 sharding was developed.
Whitepaper for the Polkadot Blockchain 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 support the decentralization of the web and by creating a framework that allows to easily build blockchains and easily utilize decentralized finance benefits.
Since then Polkadot crypto has become one of the leaders with a market cap approaching the $50 billion mark, ranking the market in 5th place overall. Daily trading volume frequently exceeds $2-$3 billion, for the circulating supply of 924 billion DOT token. As of now DOT price is trading above $40 and has reached an all-time high price of $47.
What is Polkadot?
Polkadot project is one of the newcomers that uses sharding multichain protocol to run its network. This allows for cross-chain transfers of data, making several blockchains interoperable, which allows increasing the decentralization of the web.
By connecting public and private blockchains, DOT crypto effectively acts as an intermediary to permissionless networks, oracles, and any potential future technologies, allowing trustless sharing of information. Polkadot has defined three main purposes it serves – network governance, operation, and the creation of parachains.
Let`s take a look at some of Polkadot basics. DOT blockchain consists of four main components, with the main being the Relay Chain, which aims to create consensus, interoperability, and shared security between networks of different chains.
Next are the so-called Parachains or parallel chains, which means that a branch from the network can be created that uses a different token that can be optimized for a specific use while keeping interoperability to the original network.
Similar to parachains, Polkadot blockchain also offers Parathread, which is based on the same model, but with a pay-as-you-go model. Finally, the fourth component is Bridges, which connect parachains and parathreads with other blockchains.
Polkadot price history and technical analysis
When looking at the Polkadot price action over the past year, we can see DOT coin starting to rally heavily since the beginning of 2021. After spending most of the second half of 2020 trading around $4-$5, the DOT price broke above the previous all-time high of $7 on the 29th of December and quickly reached the Polkadot forecast price of $10.
This allowed for more Polkadot bulls to jump into the bullish trend, subsequently leading to another push higher in the middle of January after a retest of the $7 mark as support. On the 16th of January, DOT reached the highest day price yet of just over $19. From there, the bullish momentum paused for several days, and the DOT price consolidated for more than a week with averaged price of around $17.
Around the time, the Polkadot price forecast was increased for many analysts, creating more interest for the Polkadot ecosystem as a whole. DOT/USD predictions frequently mentioned the $40 mark as the next target for the following weeks. This forecast price was later on reached as the crypto rallied further together with the Bitcoin price in February and eventually peaked around $42.
Later, Polkadot coin price started to consolidate again and spent several weeks trading around $35 average price, with a minimum price of around $32.5 for the trading range. On the 24th of March, Polkadot price spiked lower and quickly reached the $28 mark, where some support was previously found.
After pausing for a day on the 25th of March, the Polkadot price reversed and started moving higher again. Over the next week, the price approached the $40 mark again, creating a bullish DOT price prediction for the upcoming days. This resulted in a clear break above the $40 mark on the 2nd of April.
On the 3rd of April, the Polkadot price finally set a clear higher high and briefly reached the $46.74 mark. Further upside was quickly rejected and the momentum quickly reversed to retest the previous all-time high of $40 as a support.
Pros and cons of investing
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 8th place overall. Whether Uniswap can overtake Polkadot price is yet to be seen.
Therefore, the biggest pro for investing in Polkadot is its popularity and large size, which according to many coin price predictions is set to reach the $100 mark in the upcoming months, meaning a total market capitalization of over 107 billion. This pro is also a con for the Polkadot network as investing in a much smaller Uniswap, could mean a substantially higher increase of forecast price over the next months.
Market prediction for Polkadot price 2021
Polkadot price prediction is bullish overall for 2021. As we have seen over the past month, the price has increased rapidly and moved above the $40 mark. This is likely due to overall interest in the decentralized ecosystem, which has developed rapidly over the past year. Therefore, let`s take a look at what are other Polkadot forecast prices right now.
According to a popular crypto news outlet, Coinpedia, the forecast price prediction for DOT is set at the $50 mark by the end of 2021. Further, DOT prediction for 2022 is set at $70.2, and by the end of 2025, DOT/USD should be priced at $170-$200.
TradingBeats, which is known for its detailed price prediction articles, estimates a maximum price of $57.03 for the cryptocurrency. Further, Polkadot price prediction is set at a maximum of $70 for 2022 and $86.34 for 2024. The minimum price is set at $58.717 for 2024
Wallet Investor also has a bullish Polkadot price prediction, by the end of 2021, they expect DOT to reach $100mark. Further in five years, Polkadot price prediction is set at $417, meaning that they are a lot more bullish for the cryptocurrency.
Cryptopolitan’s verdict on Polkadot
We have a very bullish forecast for DOT coin price prediction in the upcoming years. Let’s take a look at some of the current price milestones for the Polkadot
Polkadot price prediction 2021
When considering the growth over the past months from $5 in January to $45 at the beginning of April, we have a price multiple of 9. Therefore, we have a bullish Polkadot prediction for the remainder of 2021, with a target of over $100 to be easily reached in the upcoming months. From there on, if we see another price multiple of 9 times, DOT/USD could be price around $400 by the end of 2021. This, however, is a very optimistic scenario.
Polkadot price prediction 2023
Polkadot price prediction for 2023 is also bullish unless we see the overall market struggling to set new highs and Bitcoin price prediction becomes bearish. Considering Polkadot achievements so far, we expect further increase to a minimum price of $200. If the rally this year continues and reaches the $100 mark, we should DOT forecast increase to $1,000.
Polkadot price prediction 2025
2025 Polkadot price prediction largely depends on the overall market cycle. If DOT reached above the $100-$200 mark later this year, we can expect that the price will exceed $1000 over the next years. This forecast price target will likely be reached during the next bull cycle as it is unlikely that the current one will continue until 2025.
What is the future of Polkadot?
Overall, considering our Polkadot price prediction, we should see a lot more growth this year. The price action has gained a lot of momentum so far this year and we set Polkadot forecast to easily reach the $100 mark.
The project’s fundamentals are strong as it offers a new and better offering for decentralized finance users. The blockchain itself is interoperable between other networks, meaning that it should see further growth as the overall crypto market grows.
As of now, Polkadot (DOT) trades around $45, with a cap of over $40 billion, ranking the coin in 6th place overall. Polkadot is one of the best-performing cryptocurrencies this year. It has already increased in price almost 10 times since the beginning of 2021 when it traded around $5.
Therefore, we expect further price growth over the next months with the next major target set at $100. Further, by the end of 2025, the coin will likely reach the $1,000 mark.
Is Polkadot better than Ethereum?
Polkadot has outperformed Ethereum so far this year. Therefore, in terms of returns, it is better than Ethereum. Additionally, Polkadot is set to become a serious competitor for 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 beginning of 2021, Polkadot price has increased almost 10 times, meaning that it indeed has been a very profitable investment. If the overall cryptocurrency market continues increasing its market capitalization, we should see DOT/USD grow even further.
Is Polkadot a good investment?
DOT cryptocurrency has seen rapid development and an increase in popularity over the past months. This is also reflected in the DOT price forecast. Therefore, Polkadot is a good investment as it should reach above $100 later this year. The DOT total capitalization will likely soon overtake both Ripple (XRP) and Binance Coin(BNB), placing the coin in 3rd place overall.