Polkadot’s dot token has risen marginally over the last few days and now ranks among the top ten cryptocurrencies by market cap. After the FTX collapse, the token’s price recovered slightly and is almost back to where it was before the crash. What is the Polkadot price prediction for the year’s end and how high will the DOT price reach in 2025? Let’s take a look at this in more detail.
What is Polkadot (DOT)?
Polkadot is a blockchain project founded in 2017 by the Web3 Foundation, a Swiss non-profit establishment. Dr. Gavin Wood, the co-founder of Ethereum and programmer of the Solidity computer language for smart contracts, is the project’s founder. At the time, the ICO brought up $145 million.
As network tokens, 10 million DOTs were provided when the company was established. Just for sake of clarity, the amount of DOT was elevated to 1 billion in August 2020. The project continues to be worked on. Even so, a substantial chunk of the network’s required functionality is now functional.
Polkadot: How Does It Work?
Polkadot is designed to build a blockchain network that links other blockchains with one another and tends to result in an “Internet of blockchains.” Web 3.0 is also mentioned in other circumstances. The so-called parachain, which links and interacts with major types, is the distinctive selling point. Polkadot utilizes the NPoS (Nominated Proof of Stake) protocol as a consensus protocol.
How has the Polkadot (DOT) price changed in recent weeks?
Polkadot Price Prediction: DOT/USD Weekly chart showing the price – GoCharting
Polkadot’s DOT token was able to climb sharply in an altcoin rally just before the FTX crash. In just a few days, the price increased from $5.80 to $7.35. The price dropped to $5.43 as a direct consequence of the crash. The DOT was able to restore stability in the subsequent weeks. At the time of writing this, the DOT price is trading at $5.58.
However, the DOT was compelled to acknowledge additional losses for several days due to the crash. It dipped as low as $5.02. That was the absolute lowest in this bear market and 2022. Only in the last two weeks has the token been able to restore fractionally. The upsurge has speeded up in recent days, with the DOT soaring from $5.40 to $5.64. Polkadot’s year-end prediction has improved as a result.
What caused the price to move in these tides?
Polkadot saw a clear downward trend in the first half of the year. Since November, the value has fallen nearly 90% due to the bear market. The price dropped to a momentary low in July. After that, things started to settle down.
Following Bitcoin’s breakout above $21,000 in late October, an altcoin rally started. In the short term, this rally increased the DOT token fractionally. The DOT, like other altcoins, was able to post substantial gains in a matter of weeks.
The FTX crash delayed the upsurge. The breakdown of the crypto exchange resulted in huge losses for most cryptocurrencies. Unlike other tokens, the DOT did not bounce back as rapidly and encountered further price falls. The price has only lately started to rise again, as the market overall slowly recuperates.
Polkadot Price Prediction: How High Will DOT Price Reach in 2025?
The DOT price has increased substantially in recent days, raising the possibility for a favorable Polkadot prediction for the end of 2022 and also 2025. The price may still probably rise in the next four weeks. Much will be influenced by the overall market’s progress. The last few weeks have illustrated that the DOT price can hardly ever rise individually of the market overall.
To push altcoins like the Polkadot higher, the bitcoin price must start rising and proceed toward the $20,000 level. Polkadot could see a relatively long rise due to its own economic benefit. As a result, by 2023, the network could be the ideal foundation for play-to-earn games.
The Polkadot course’s significant increase is strongly dependent on the growth of the Bitcoin course and the market at large. If the market overall expands, only a minimal price rise is expected in the next four weeks. We predict a price hike of no more than 10-15%.
A price drop in the coming weeks is also possible, but we assume it is highly improbable. Following the healing from the FTX crash, the price orientation is more up, and at the end of the year, subtle price hikes in cryptocurrencies are more usual. As a result, we predict a Polkadot prediction for the end of the year of $5.60 to $7.20.
When we look three years ahead, things become a little more interesting. The price of DOT is heavily influenced by the price of Bitcoin. The next Bitcoin halving is almost certainly in 2024. As a result, the price of Bitcoin is expected to skyrocket in 2024, particularly in 2025.
Bitcoin’s price increased 20 times from bear market lows to all-time highs during the previous bull market. In the case of DOT, the increase was relatively minor. Nonetheless, we can expect the DOT price to rise by a factor of 10 to 15 from the bear market to the bull market. So, in the next three years, the price of DOT could range between $50 and $75.
Is it beneficial to invest in the DOT token?
Our Polkadot prediction demonstrates that short-term improvements are possible through the end of the year. Even so, you should think about the long term. The year 2023, in specific, may see a solid comeback in the cryptocurrency market. This should also actually enable the Polkadot course to climb more strongly, particularly since the number of use cases is expected to grow significantly over time.
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