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?
- From the Polkadot whitepaper
- 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 take a look at the kind of Polkadot price prediction people are making, let’s see what Polkadot is all about.
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 support other blockchains created by users themselves.
Polkadot itself sustains two types of blockchain. There is the main one, called the relay chain, on which transactions are permanent. The other type of chain is called a parachain. Parachains are created by Polkadot’s users and link into the relay chain, allowing the user-created ones to benefit from the main chain’s security.
How does Polkadot work?
Polkadot uses a modified form of the proof-of-stake (PoS) consensus, called nominated proof-of-stake (NPoS). This means that someone who stakes the native coin, DOT, can validate data, nominate people to serve as validators, police the network and/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, including Currency.com.
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, it did not affect anything: the price went down, but the number 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 8 August 2022 there were 1.1 billion DOT in circulation, out of a total supply of just over 1.22 billion.
From the Polkadot whitepaper
The Polkadot: Vision for a Heterogeneous Multi-Chain Framework whitepaper is 21 pages long. Published in 2016, the paper outlines the technical vision and rationale behind the protocol’s development.
The whitepaper explains: “Blockchains have demonstrated great promise of utility over several fields, including Internet of Things (IoT), finance, governance, identity management, web decentralisation and asset-tracking.”
It goes on to address five key failures in “significant real-world deployment of the present technology,” including scalability, isolatability, developability, governance and applicability.
In terms of Polkadot differentiating itself from other protocols, the whitepaper states: “Participants work in enlightened self-interest to create an overall system which can be extended in an exceptionally free manner, and without the typical cost for existing users that comes from a standard blockchain design.”
Polkadot price history
With Polkadot explained and before we look at a Polkadot coin price prediction, 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.
When Polkadot as we know it came onto the general market in the summer of 2020, it was worth around $2.75. On 20 August that year, it opened at $2.79 before dropping down to $2.69, which remains the all-time low for the crypto.
There was some growth during the rest of the year, breaking through $3 on 21 August 2020, then $4 on 22 August, $5 on 25 August and $6 on 26 August, meaning it doubled in value over the space of just five days. It then 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 2020 at $9.29.
Polkadot was one of the many cryptocurrencies caught up in the crypto boom of early 2021. First, it broke through $10 briefly on 3 January, then it went up by a considerable amount, closing on 13 January 2021 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 occurred on 3 February 2021, when the coin went up to $20 for the first time, while on 13 February it topped $30 in intraday trading. It mostly traded above $30 for the rest of that month and throughout the next, and on 2 April 2021 it closed at $41.16.
The first half of April saw DOT stay above that mark, but on 18 April 2021 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 high of $49.69 on 15 May 2021.
The coin then suffered during the great crypto day crash of 19 May 2021, falling 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 2021.
Fortunately for the coin, a crypto recovery saw it reach $30 for the first time since 19 May on 31 August 2021, and on 31 October 2021 it was trading at around $41.78. By 4 November 2021, it had reached a new all-time high of $55.
However, December 2021 was a difficult month for cryptocurrencies, with Bitcoin falling by 19%. DOT was no exception, and by 31 December the coin was trading at $26.72.
The struggle continued into mid-January and by 22 January 2022, the coin was worth $18.23. There was a slight recovery to $20.46 by 4 February 2022, up 8.54% from its previous close.
There was further bad news for DOT investors, though, as the coin went on a downward trend, exacerbated by global concerns surrounding Russia’s invasion of Ukraine, and the crypto closed the month at $18.94.
Even the news, on 1 March 2022, that Ukraine was to accept donations in DOT did not have too much of an impact on the coin’s price, and it closed that day at $18.88. That said, the coin then started on the slow path to recovery and, by the afternoon of 23 March 2022, it stood at around $20.60. There was more growth to come and on 2 April 2022 it reached a high of $23.77.
After that, though, China announced that it was making crypto transactions illegal and, on 11 April 2022, DOT collapsed to $17.04. There were then some small signs of a spluttering recovery, and on 19 April 2022 it was worth around $18.20. However, the price collapsed at the end of the month and by 6 May 2022, it was worth about $14.40.
Next, DOT got caught up in the market turmoil caused by the depegging of UST and the collapse of LUNA. It sunk to a low of $7.32 on 12 May 2022 – the lowest it had been since 2020 – but started to recover slowly, coming in at around $10.40 on 18 May. After that, things fell apart again, with it reaching as low as $8.61 on 27 May, but there was a fightback and DOT closed the month at $10.37.
In June, the coin, along with most of the cryptomarket, struggled as a bear market was confirmed following the cancellation of withdrawals on the Celsius lending platform. On 13 June 2022, it fell to a low of $6.43. After this, though, there was some recovery and it closed the month at $7.04.
Things initially looked positive, with the coin rising to $7.44 on 8 July, but there was a downturn. Not even the news that crypto investment firm Grayscale had holdings in DOT, nor the release of a report saying that usage had remained consistent despite the market downturn, could stop it from falling to a low of $6.09 on 13 July 2022. A market upturn after that saw DOT close the month at $8.65.
While the first week of the following month saw a drop to $7.70 on 2 August, there was more recovery, with Polkadot boosted by the news that it was to become available on the Japanese crypto exchange Bitbank, and on the morning on 8 August 2022, the coin was worth about $8.95.
At that time, it had a market cap of a little under $9.88bn, making it the 10th largest crypto by that metric.
But what of the future? What sort of Polkadot coin price prediction can we make? Let’s take a look.
Polkadot coin price prediction
WalletInvestor predicts that DOT coin will fall to around $0.677 by early August 2023.
DigitalCoinPrice’s DOT coin price prediction for 2022 is a bit more upbeat, saying the coin will reach $12.40 this year, before climbing to $13.26 next year and $14.08 in 2024. The site’s DOT coin price prediction for 2025 forecasts that it will be up to $18.07, before going down to $16.87 in 2026 and then bouncing back to $22.93 a year after.
The site then suggests the DOT price will be $30.90 in 2028, and believes that 12 months later the Polkadot coin price will be $37.88. The site’s DOT coin price prediction for 2030 is $42.88, while in 2031 the coin should stand at $47.25.
Finally, LongForecast is a lot gloomier in its Polkadot price prediction. The site says that it should close 2022 at $9.37, before declining to finish 2023 at $4.92. The site says it should recover to $10.76 by the end of 2024, before closing the following year down slightly to $10.49.
How many Polkadot coins are there?
As of 8 August 2022, there were 1.10 billion DOT in circulation, out of a total supply of 1,220,049,712.
Is Polkadot a good investment?
There is no definitive answer to that. 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.
Will Polkadot go up?
It might do. There are certainly some rather bullish long-term predictions out there, although WalletInvestor disagrees. Nevertheless, you do need to be cautious, because prices can go down as well as up, and predictions are very often wrong.
Before investing in any asset, always do your own research and remember that your decision should be based on your attitude to risk, your expertise in this market, the spread of your portfolio and how comfortable you feel about losing money. Never invest more than you can afford to lose and keep in mind that past performance is no guarantee of future returns.
How to buy Polkadot coin
If you want to buy DOT, you can do so at a range of exchanges, including Currency.com.
Just remember to do your research first, and never invest more money than you can afford to lose.