Polkadot is a network protocol that allows random data to be transferred across the blockchain. It is a true multi-chain application environment where cross-chain registries and cross-chain computation have the conditions for existence. The project can transfer this data through public, open, permissionless blockchains as well as private, authorized blockchains. Polkadot has its own cryptocurrency – DOT. Polkadot is the flagship project of the Web3 Foundation (swiss foundation with the big aim to create a fully functional and user-friendly decentralized network).
DOT coin statistics
Polkadot is built to connect private blockchains and consortium, public and independent networks, oracles and future technologies. Polkadot provides an Internet where independent blockchains can exchange information and transactions through the Polkadot relay chain. The project may seem quite promising but let’s look at DOT in detail.
According to the information from CoinMarketCap (as of 13/02/2021):
- DOT price: $28.56
- Market capitalization: $26,057,271,211
- Volume (24h): $5,241,051,112
- Circulating supply: 907,697,990 DOT
- Total supply: 1,043,305,519 DOT
- 24 Hour High: $30.15
- 24 Hour Low: $26.12
The Polkadot story begins with the Ethereum project, more precisely, with one of the co-founders of Ethereum, Dr. Gavin Wood – he wrote the code for the first working version of Ethereum. In January 2016 he left the position of CTO and Ethereum main developer and started developing a new cryptocurrency. The first sketch of the Polkadot White Paper was completed by the end of 2016. Let’s look at the Polkadot RoadMap from the beginning (data from Messari):
Current phase of Polkadot is Parachain Rollout (as of 13/02/2021), and now the team is working on Future Upgrades such as XCMP (Cross-Chain Message Passing). What was before it when the project only appeared? See below (from Polkadot):
- PoA. Within this stage, Polkadot was functioning as a Proof of Authority (PoA) chain that is supported by 6 validators belonging to Web3 Foundation. PoA chain merely enables users to request DOT tokens or suggest their plan to validate or nominate.
- NPoS. After meeting a satisfactory number of validator’s intentions at the PoA stage, the network is to be effectively switched to Nominated Proof of Stake (NPoS). At this point, the Web3 Foundation will take a step towards decentralizing the network by raising the set of active validators from 20 to 100 active users validator nodes.
- Enabling Governance and Removing Sudo Phase. After the chain works well with an enormous validator set, the Sudo key will allow the suite of governance modules in Polkadot such as Technical Committee, the Council, and public plebiscite. The next step is the removement of the Sudo key. Without Sudo, the chain will never again be a nominee and will be a live, decentralized network.
- Enabling Balance Transfers. To empower balance transfers, the community gathered and voted on an operating time upgrade that would lift the limitation on balance transfers. Once the proposition passed the referendum, there was a statute period after which the change automatically should enter into force.
If Polkadot’s roadmap could be summed up in one word, the word would be “cautious”. The Web3 Foundation spends a lot of time making sure everything is done correctly.
Crypto experts and celebrities about DOT
After conversion, people were talking about “old” and “new” DOT. Existing 10 million DOT have been multiplied by 100. This was done primarily to make it easier to calculate the cost of transactions. This change took place on August 21, 2020.
The sharp increase in DOT figures has raised active discussions. The net users suggested that the data might be artificial:
Many users wondered how new DOT which was not even two weeks old, could be in the top 5 cryptos. But crypto community members drew attention to the fact that Polkadot itself, and its original cryptocurrency, were much older:
The release of the update also preceded the DOT reaching a high position in the capitalization rating.
DOT price prediction 2021
Once in an interview it was said by Dan Morehead (CEO of Pantera Capital): “If I have to pick one, I will actually pick Polkadot. It is about 10% of the value of Ethereum. It has more than 10% chance that it is a very viable competitor.”
Here is DOT price prediction 2021 from different cryptocurrency services.
According to Trading Beasts, we can see the following price prediction (as of 13/02/2021):
Minimum DOT price for 2021: $18.722
Maximum DOT price for 2021: $37.053
Average DOT price for 2021: $25.7183
Year-end DOT price predictions 2021:
Minimum expected: $25.196
Maximum expected: $37.053
Average expected: $29.642
Based on WalletInvestor (as of 13/02/2021), DOT price prediction is reflected below:
Minimum DOT price for 2021: $69.3098
Maximum DOT price for 2021: $140.628
Average DOT price for 2021: $104.953
Year-end DOT price predictions 2021:
Minimum expected: $109.825
Maximum expected: $180.977
Average expected: $145.399
Alternative DOT price prediction 2021 can be found on Digitalcoinprice.com (as of 13/02/2021):
Average DOT price 2021: $41.59
Average year-end DOT price expected: $37.9
Here is the DOT price prediction 2021 by Longforecast (as of 13/02/2021):
Minimum DOT price for 2021: $15.81
Maximum DOT price for 2021: $99.54
Average DOT price for 2021: $73.44
Polkadot price 2021 expected in three months
Minimum DOT price expected: $60.99
Maximum DOT price expected:$75.70
Average DOT price expected: $68.35
Year-end Polkadot price predictions 2021
Minimum expected: $86.52
Maximum expected: $99.54
Average expected: $93.03
The next DOT price prediction is based on the information from CoinPriceForecast (as of 13/02/2021):
Mid-year DOT expected price: $104.95
End-year DOT expected price: $232.43
Polkadot price prediction 2025
According to experts at DigitalCoinPrice, Polkadot is a profitable investment that will increase in price in the future. They expect it to rise to $20 in February 2025. Despite the positive forecast, by December the rate will be adjusted to $16.45.
WalletInvestor analysts suggest that the value of the DOT cryptocurrency may continue to decline. In their opinion, at the beginning of 2025 the price will be $0.297. At the end of the year, the rate will rise slightly to $0.469.
Long-term cryptocurrency predictions are rarely reliable because they cannot take into many factors. Polkadot has existed for not a long time for now, and more historical data is required to analyze its rate.
Historical price analysis
- All Time High: $32.58 (Feb 18, 2021)
- All Time Low: $2.69 (Aug 20, 2020)
At the beginning of February, 2021, 21Shares launched the world’s first exchange-traded product (ETP) on Polkadot on the SIX Swiss Stock Exchange.
Also in February, Digital Finance Group (DFG), a global blockchain and digital asset investor, announced the creation of a $ 20 million dedicated fund to support the development of projects in the Polkadot ecosystem.
In January DOT set a record, rising more than 15% in the 24 hours. Having increased its market value to over $13 billion, DOT surpassed XRP in the list of the most valuable cryptocurrencies and climbed to 4th place on CoinMarketCup.
More than $90 million raised during the ICO were frozen forever due to a vulnerability in the code of the Polkadot multisignature wallet. A week after the attack, the Polkadot team announced that they had sufficient funds to develop the project, and continued to work, despite the loss of a huge amount. Despite efforts to recover funds, more than 500,000 ETH are still in a locked state.
Twitter community about DOT
Tweet from TokenSwap community about launching Polkadot-based auction protocol:
People also make DOT price predictions:
The Polkadot project hasn’t drawn much attention for over three years since its development began, but then it rocked the crypto space with the official release of its “completed” mainnet. In less than 2 weeks, the Polkadot token climbed into the top ten cryptocurrencies by market capitalization. While its founder insists that Polkadot is not a competitor for Ethereum, some people believe that a closer look at Polkadot suggests that it is not only a serious competitor to Ethereum, but also a cryptocurrency that could change the Crypto World forever.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.