Polkadot’s native DOT token remains under bearish pressure since topping $50 towards the end of 2021. The token has since faced what can be attributed to macroeconomic aspects and the increasing competition for more established networks like Ethereum. Overall, the crypto sector started 2022 on a downward trend. Look no further if you are looking for Polkadot price predictions for 2022-2025. We will look at this crypto pricing to see what to expect from future price changes.
What is Polkadot?
It is an open-source blockchain hosting interoperable, application-centered sub-chains called parachains. The chains are developed with Parity Technologies’ Substrate modular framework to enable users to choose specific elements suitable to their deployed applications.
The crypto consists of the parachains:
Relay-chain facilitates the mapping of addresses into account information and manages communications. Parachains aggregate and process transactions with the Relay chain used in finality. Higher speeds are achieved by parallel transaction processing in place of queuing.
- Polkadot Runtime Environment
It hosts networking, consensus, and WebAssembly Virtual Machine subsystems. The networking function relies on libp2p, a cross-protocol network framework for peer-to-peer discovery and communication.
- Bridging element
The last component in Polkadot is the Bridge, which links to the outside networks via bridging contracts and modules. Bridge contracts are smart contracts that link Polkadot’s relay chain to external chains, while the bridging modules enable external chains to connect with Polkadot.
The crypto was founded by Dr. Gavin Wood, Robert Habermeier, and Peter Czaban based on a whitepaper released in 2016. Wood is a notable figure in blockchain technology, being the co-founder of and former CTO of Ethereum and among the team behind Solidity. The project was taken over by Web3 Foundation, a research and development entity founded in 2017.
Polkadot: should you invest in DOT today?
It is not an ideal investment opportunity for short-term gains based on the daily chart below. The token is trading around a support level of $15 and remains largely bearish. DOT/USD is below the 100 and 200 moving averages, projected to offer resistance to the upside.
The Relative Strength Index is at 33, slightly above the oversold zone, meaning a slight bearish pressure could be seen before any trend reversal.
Will DOT reach 100 USD in 2022?
Although crypto has been downtrend lately, many factors point to a possible trend reversal and a bull run to the previous highs. Crypto is relatively in its infancy, and a growing adoption will see DOT rise. The fundamental aspects of the crypto and the scalability of the network through smart contracts give Polkadot a strong potential in the long run. A perfect prediction is nearly impossible, and further research is recommended.
- Our in-depth analysis puts the price of tokens at $30 in 2022, with a possibility of rising as high as $35. The token is expected to trade at $25 on average.
- In 2023, it will rise to a maximum price of $40 and $37 at a minimum. The tokens are projected to trade at $27 throughout the period.
- The 2024 price prediction for the crypto against the dollar is expected to jump as high as $48 and $44. The average trading price in the period will be $38.
- DOT is forecasted to rise to about $60 in 2025 at a more bullish figure and at least a high of $55. On average, the token will trade at $49.
DOT past price analysis
It is the native token on Polkadot that is used for paying gas fees, interoperability, governance, and bonding. CoinMakerCap ranks the crypto as the 14 by CoinMarketCap with a market capitalization of $14,898,619,807.78. There are currently 987,579,314.96 circulating DOT from an uncapped supply of 1,103,303,471. The uncapped supply is used in determining the inflationary model for facilitating the rewards for the proof-of-stake system.
DOT launched through a crowd sale with an initial token supply of 1,000,000,000. From the supply, 58.4% was allocated to investors, 30% was set for founders and projects, and 11.6% for pre-mined rewards and airdrops.
It is currently trading at $14.87 after a drop of 0.41% in the past day and 14.67% in the past week. DOT/USD has dropped 36.95% in the past month and 24.08% in three months. The past year also shows a declining price in Polkadot of 60.1%. DOT jumped to an all-time price of $53.88 in November 2021 before retracing 72.4% to the current price.
Staking DOT tokens
Polkadot uses a proof-of-stake consensus algorithm to secure transactions, verify, and distribute new DOT tokens. The PoW system features validators, nominators, collators, and Fishermen. Staking enables users to contribute to the network governance through new proposals and for a chance to receive staking rewards.
Polkadot’s nominators delegate some of their DOT tokens to validators. Collators validate parachains while the Fishermen flag and report bad actors.
Staking DOT starts with creating a Polkadot account and visiting Polkadot-JS UI main page.
- Click the staking link and choose account actions.
- Click the nominator button and choose Stash and Controller accounts.
- Choose the validator, enter the password and click the ‘Sign and Submit’ option.
Want to buy DOT?
It is listed on major exchanges, including Binance, Kucoin, Huobi Global, and Gate.io. The tokens are traded against USDT, BUSD, and BTC. To buy Polkadot on Binance using a credit card, follow these steps.
Register an account with Binance.
Verify account identity.
Buy stablecoin available on Binance by transferring funds from your wallet to the coin providers, including USDT, BUSD, or other available altcoins pairs.
Exchange the stablecoin for DOT.