Polkadot coin price prediction: can DOT go up?
It is never the easiest thing to do, but can we make a polkadot coin price prediction?
- What is polkadot coin?
- How does Polkadot work?
- Polkadot price history
- Polkadot coin price prediction
The polkadot coin, or DOT coin, is a cryptocurrency with a decent number of supporters and enthusiasts. Before we look at what sort of polkadot price prediction people are making, however, let’s see what polkadot is.
What is polkadot coin?
The DOT coin is the native token of the Polkadot blockchain, which was founded in 2016 by the Web3 foundation. This Swiss-based non-profit organisation’s founders are Ethereum co-founder Gavin Wood, blockchain researcher Robert Habermeier and technology director Peter Czaban.
The idea behind Polkadot is to create a blockchain that helps to support other blockchains that users create themselves. Polkadot itself sustains two types of blockchain. There is a main one, called the relay chain, on which transactions are permanent. The other type of chain is called a parachain. These chains are created by Polkadot’s users and link into the relay chain, meaning that the user-created ones benefit from the main chain’s security.
How does Polkadot work?
Polkadot uses a modified form of the Proof-of-Stake (PoS) consensus called the Nominated Proof-of-Stake (NMoS). This means that someone who stakes the native coin, DOT, can validate data, nominate people to serve as validators, police the network or help organise parachain history. DOT holders can use their coins to vote on changes to the network, elect council members, who have certain voting privileges, and even support a technical committee nominated by the council. The coin can also be purchased on a variety of exchanges. Although it is not available on Currency.com yet, we will let you know if and when it is.
DOT ended up redenominating itself in August 2020. This meant that the price was, in effect, reduced by 100 times. While this might seem disastrous at first, it did not affect anything. While the price went down, the amount of DOT people held went up 100 times, meaning no one missed out financially and everyone owned the same amount of the network as they did before.
In terms of supply, as of 6 October, there are 987,579,314 DOT in circulation out of a total supply of 1,103,303,471, or 88.2%.
Before we look at Polkadot price predictions, let’s have a look at the crypto’s history. While past performance is not an indicator of future results, it does give us some context if we are going to make a polkadot crypto price prediction.
Polkadot price history
When polkadot as we know it came on to the general market in the summer of 2020, it was worth around $2.75. For instance, on 20 August that year, it opened at $2.79 before dropping down to $2.69, which is still the all-time low for the crypto. There was some growth during the rest of the year and it broke through $3 on 21 August, then $4 on 22 August, $5 on 25 August and $6 on 26 August, thus more than doubling in five days. It hovered between $4 and $6 for most of the rest of the year, but shot up during the last few days of 2020, closing on 31 December at $9.29.
Polkadot was one of the many cryptocurrencies caught up in the cryptoboom of early 2021. Firstly, it broke through $10 briefly on 3 January, then it went up by a considerable amount, closing on 13 January at $10.96 and finishing up the following day at $14.54, a rise of more than 32% over the course of 24 hours. Another major milestone happened on 3 February, when the coin went up to about $20 for the first time, and on 13 February it topped $30 intraday. It mostly traded at above $30 for the rest of that month and throughout the next, and on 2 April it closed at $41.16. The first half of April saw it stay above that mark, but on 18 April it lost more than 23% of its value, tumbling from $43.11 to $32.87. It spent periods below $30 on 24, 25 and 26 April, but the price then re-emerged above $40 on 12 May before shooting to an intraday all-time high of $49.69 on 15 May.
The coin then suffered in the great crypto day crash of 19 May, dropping by nearly 55% from $41.34 to $18.64. There was some recovery over time, but first it had to experience a bearish period, dropping to an intraday low of $10.69 on 21 July. Fortunately for the coin, the recent crypto recovery saw it reach $30 for the first time since 19 May on 31 August and, in the early afternoon of 6 October 2021, it was trading at around $30.12.
But what of the future? What sort of polkadot coin price prediction can we make? Let’s take a look.
Polkadot coin price prediction
The financial website FXstreet claims that the near future could see some interesting moves in the DOT coin price. It says there is the potential for the coin to hit $42.71 in the short term and that it would not be impossible for it to reach a new all-time high and go above $50. On the other hand, the site also thinks that the coin could easily drop down to $28.60, and there is also a concern that the price could fall as low as $23.46, which might see a massive sell-off and trigger a crash in the coin’s price.
Going more long term, WalletInvestor says that DOT coin will reach $55.19 in a year’s time and $151.50 in five years. DigitalCoinPrice’s DOT coin price prediction 2021 says that it will get to $45.36 in December this year. The coin will hit $57.97 in October 2022, and will be $59.12 a year from that. By October 2024, the site’s DOT coin price prediction forecasts that it will be $61.79, before rallying to reach $90.30 in October 2025 and $91.67 a year after. It suggests the price will be $91.91 in October 2027, and it believes, 12 months on from then, the polkadot coin price will be $130.10.
Finally, Gov.capital has a polkadot price prediction of around $108.02 on 6 October 2022, while it believes the coin’s price will be around $251.645 a year on from that. On 6 October 2024, it should be somewhere around $446.34 and 12 months after that, the site has a DOT coin price prediction for 2025 that says it will shoot up to stand at somewhere around $691.18. On 6 October 2026, the site predicts that the DOT coin price will be about $984.
There is a total supply of 1,103,303,471 DOT coins, of which 987,579,314.96 are in circulation.
There is no definitive answer. Whether you think DOT is a good investment or not depends on whether you think it will go up and, if so, by how much, and how soon it will get there. Since cryptocurrencies are highly volatile, you ultimately need to do your own research.
It might do. Certainly, the long-term predictions for DOT are rather bullish. Nevertheless, you do need to be cautious, because prices can go down as well as up, and predictions are very often wrong.
You can buy polkadot from many exchanges. Although it is not yet available through Currency.com, we will let you know if and when that changes.