In this guide, we will express our and the market’s opinion on the future of Polkadot as we discuss DOT price forecasts for 2023 and beyond.
Keep in mind that you should take this and any other forecast with a grain of salt as predicting anything is a thankless task, let alone predicting the future of a new highly volatile financial asset like Polkadot.
Now, let’s get into it.
Before we delve into Iota’s price prediction and answer questions about whether Polkadot is a good investment or not, why Polkadot will succeed or fail, or why Polkadot’s price will rise or fall, let’s quickly take a look at what Polkadot is and its history to date.
Table of Contents:
What is Polkadot
Polkadot is a platform that allows different blockchains to transfer messages, including value, in a trustless manner; share their unique characteristics while pooling their security. In short, Polkadot is a scalable heterogeneous multi-chain technology.
This interoperability seeks to establish a completely decentralized and private network, controlled by its users, and simplify the creation of new applications, institutions and services.
Polkadot’s native DOT token has three clear purposes: to provide governance and network operations, and to create parachains (parallel chains) via bonding.
Polkadot can be considered equivalent to a set of independent chains (e.g. a set containing Ethereum, Ethereum Classic, Namecoin and Bitcoin) except with important additions: shared security and trust-free interchain transactability.
Many of Polkadot’s native chain guards will be written using a Polkadot Runtime Environment SDK (e.g. Parity Technologies’ Substrate).
How does Polkadot work?
The Polkadot network uses a partitioned model in which schedules, called “parachains,” allow transactions to be processed in parallel rather than sequentially. Each parachain in the network has a unique state transition function (STF). Based on Polkadot’s design, as long as a chain’s logic can be compiled into Wasm and adheres to the Relay Chain API, it can connect to the Polkadot network as a parachain.
Polkadot has a relay chain that acts as the main chain of the system. Chain guards construct and propose blocks to validators on the forwarding chain, where blocks undergo rigorous availability and validity checks before being added to the finalized chain. Since the forwarding chain provides security guarantees, collators – complete nodes of these parachains – have no safety responsibilities and therefore do not require a robust incentive system. In this way the entire network remains up to date with the numerous transactions that take place.
How is the Polkadot network secured?
Polkadot’s mass interoperability through a number of common validators helps secure its multiple blockchains and allows them to scale their transactions by spreading their data across many parachains.
The network uses the named proof-of-stake (NPoS) mechanism to select validators and nominators and maximize chain security.
This unique validity scheme allows chains to interact with each other safely according to the same rules, while remaining governed independently.
Polkadot Price Forecast
The entire cryptocurrency world is on the verge of complete collapse. Bitcoin fell 75% from its all-time high amid broader market declines caused by furious inflation and the US Fed’s rate hikes.
When you add the most recent collapses of huge industry players (FTX, Celsius, Moon etc.) into the equation, the horizon is murky and there will be more blood on the streets of the crypto city.
Investors are selling risky assets and moving to more stable markets. Crypto is still perceived as a very risky game and therefore sell off.
Our algo still sees some green in 2023, especially in the second half of the year. This is reflected in our forecast for 2023.
Right now, Bitcoin needs to find a bottom before we can move in the opposite direction and reverse the trend.
Once Bitcoin settles into the new price range, altcoins will start doing the same – we’ve seen this scenario dozens of times in distant and more recent history.
Our price forecasting model is bearish for the next 90 days with a hint of a bull market straddling quarters from Q1 to Q2. We expect whales and other larger players in the market to finish filling their bags around that time, which will cause a typical and sudden crypto spike.
The fundamentals we evaluate are teams, tokenomics, use case, community, marketing efforts, liquidity and availability of exchange, hype and speculative potential, and some other proprietary factors developed in our crypto lab.
Polkadot Price Prediction 2023
DOT Price Prediction 2025
Our forecast model sees DOT reaching $35.30 in 2025.
How much will DOT be worth in 5 years?
The price of DOT in 5 years could be around 10.76 dollars
Polkadot Price Prediction 2030 – 2040
How much will Polkadot be worth in 2030?
Our forecast model sees Polkadot reaching $88.24 in 2030.
How much will Polkadot be worth in 2040?
Our forecast model sees Polkadot reaching $176.49 in 2040.
Will Polkadot replace/surpass/surpass Bitcoin?
No, Polkadot will not replace or exceed BTC.
Can Polkadot reach $100?
Yes, Polkadot could reach $100 by the end of 2022.
Can Polkadot reach $1000?
Yes, it is possible that Polkadot could reach $ 1000 but only in the distant future, after 2030.
Is it worth buying Polkadot?
We are supporters of moderately risky investments: invest most of your cryptocurrency portfolio in BTC (50%); 35% in a basket of large-cap coins and the rest in small projects with huge increases. So, against this background, it is worth buying Polkadot.
Is Polkadot a good investment?
Polkadot is, just like all other cryptocurrencies, a risky investment. It is more likely to go up than down because of the good use case, well-designed tokenomics, active community, and a strong team behind it.
How much will Polkadot be worth?
For the short-term future, it could reach $2.81. In the long term (8-10 years), it could jump to $88.24 or even higher.
Why will Polkadot succeed and go up in price?
Polkadot has a good use case, well-designed tokenomics, active community and a solid team behind it. All of these are a prerequisite for success and that’s why our forecasting model sees Polkadot rise to $88.24 in 2030.
Why will Polkadot go bankrupt and go down in price?
Cryptographic projects fail for various reasons. Some of the most common are: the team goes rogue and abandons the project, regulators declare it illegal and press exchanges to delist it, lack of media attention, more successful competitors, lack of a well-designed marketing strategy, loss of community support, potential vulnerability in the protocol, failure to achieve the minimum development activity foreseen on the protocol, inability to attract new developers to build on their platform.
How high will Polkadot go?
Our prediction model sees the price of Polkadot explode and reach $176.49 in the distant future.
What is the short-term forecast for Polkadot?
Polkadot will reach $2.81 over the next 90 days, which is a 38.8% change from the current price which hovers around $4.60.
Can Polkadot make you a millionaire?
Yes, if you buy a large enough sum. Don’t expect to invest $100 and become a Polkadot millionaire. But 100x price explosions are a common sight in crypto, so a $10k investment in Polkadot could make you a millionaire.
Polkadot Price Prediction Today – What Will Polkadot Price Be Tomorrow?
Polkadot will hover around $5.01 tomorrow.
Fundamentals
Many investors (traditional and crypto) will tell you that fundamentals are extremely important and should carry the most weight when evaluating a project. We agree with this statement, to some extent.
Crypto is specific in the sense that fundamentals are hard to rely on. How come?
Well, most crypto investors aren’t technologically refined to figure out if it’s even feasible to do what the project claims to do. This leads to exaggerated and unfounded roadmaps by many crypto project teams. These roadmaps look great, and people flock to invest in the project even though, with a little technical or economic knowledge, they would have seen how ridiculous some of those ideas are.
Use case
For this reason, it is always good to check the feasibility of the use case by consulting someone more technically astute.
For example, many of these projects noticed the problem of the speed of transactions with Bitcoin, so they went all-in with the speed of their blockchains. But that speed had the cost of decentralization. Essentially, they claimed to have solved a blockchain trilemma, which has been bothering genes for centuries. But twenty appointments solved it in a week or so.
What does Polkadot?
Not very original use case. Just another smart contracts platform that aims to be faster and more efficient than Ethereum. Making land on ETH will be a steep hill to climb. However, Polkadot has proven that it can shake up Ethereum’s boat as its rise to prominence has been rapid, which has led to many Ethereum projects to extend their reach to the Polkadot platform as well.
Delays have continued to weigh on Ethereum which continues to give a surprising chance to its competitors such as Polkadot, Cosmos, NEO, Cardano and many others.
Polkadot’s main advantage over Ethereum and other competitors is its superior design, right from the start.
Parity Substrate and Polkadot solve all the problems that prevented blockchain from reaching its full potential of the vision of what blockchain could be for the world:
network security for small chains (which comes from the ingenious method of using the Polkadot relay chain to fortify / defend small parachains)
guaranteed performance of each parachain (it is provided as an advantage of heterogeneous sharding, i.e. it prevents the problem of cryptokitties that arise and cause the slowdown of the dApp of all the others)
Scalability (infinite – no limit to the number of chain guards that can be created in the ecosystem)
interoperability (for both cryptocurrency transactions and data exchanges on the forwarding hub; the latter opens up the potential for new use cases > search for the term “extrinsic” if you want to know more)<br />
governance (liquid democracy is a huge step forward!)
smart contract upgradeability (if you are a developer you know this is a huge problem for all Ethereum derived chains)
team
Evaluating the team behind the project is another point that needs to be addressed. Most of the time, these people will be the sole source of their claims (and modified LinkedIn profiles). So while this is an important criterion, keep in mind that a cunning team of marketers can fake legitimacy.
A huge RED FLAG on a team is tweeting, publishing, blogging about the price of their token. No legitimate team does this because they have smarter things to do, like working on their multimillion-dollar project. Only money hoarders run their official social media and blogs like the most blatant manipulators in the market (example: Justin Sun) to drive up the price before downloading their mountains of coins that they created out of thin air and assigned to themselves.
Such teams usually pay low-level crypto media publications to publish “unbiased” articles and reviews of their projects in an attempt to create the illusion of a widely respected and attractive project.
Very transparent and professional. No action on shilling prices or comments, focused on construction.
Polkadot was founded by the Web3 Foundation, a Swiss foundation founded to facilitate a fully functional and user-friendly decentralized web, as an open source project.
Its founders are Dr. Gavin Wood, Robert Habermeier and Peter Czaban.
Wood, president of the Web3 Foundation, is the best known of the trio due to his influence in the industry as co-founder of Ethereum, founder of Parity Technologies, and creator of the smart contract coding language Solidity.
Habermeier is a Thiel Fellow and blockchain and cryptography researcher and developer. Czaban is the Chief Technology Officer of the Web3 Foundation. With extensive experience in highly specialized fintech sectors, he is currently contributing to the development of a new generation of distributed technology.
community
Community – pay special attention to this. The size of the community is not relevant as it can be easily spoofed (just check Fiverr or Upwork to see how easy it is to buy 100k of Twitter followers or subreddit subscribers).
What’s most important is the content that community members post: does it sound real? Is it just price-centered? It allowed to exercise some critical thinking or the only posts allowed are hucksters and cult idolatry of the team (most often the team leader gets a rockstar status among embarrassed investors).
Is it worth investing in Polkadot – community assessment
Very active subreddit with almost 20k subscribers and rather active Telegram and Discord groups. It seems to be genuine and authentic, no bots, no low quality posts about moons and price action.
Exchanges and wallet support
Another good indicator of how serious the project taken by other crypto agents is. Some smaller, marginal exchanges and wallets may be paid for listings, but larger platforms like Kraken, Binance, or Coinbase lend legitimacy to a project that’s listed there. So, this is a great starting point if the project is really worth something among its peers.
Why will Polkadot succeed?
Excellent support among popular exchanges (Binance, Bitfinex, Kraken, Kucoin etc) and wallets (Atomic Wallet, Trust Wallet, Watch etc.).
Tokenomics
Sometimes the project makes sense and everything seems right except the role of the token. It is simply superfluous and forced in the photo (so the team can take the money and get rich). Aside from the logic behind the token, you should pay attention to its current and overall supply. In addition, inflation and the rate of production of new coins are extremely important. The distribution between the team, early investors and regular users is also of immense consequence. Check out Ripple and XRP to see how difficult it is to have organic price growth when there is a large number of people downloading millions of new tokens (unlocked) to the market every week.
It is important that tokens are woven into the project with smart incentives in mind. These are incentives in the world of cryptocurrencies: why should the buyer keep some coins, what is in it for him? Different projects use different methods to entice people to buy and hold their coin.
Is DOT a good investment?
Polkadot currently has an allocation of 1 billion DOT tokens, following the renaming of the network from an initial maximum offering of 10 million in August 2020. The renaming was undertaken solely to avoid the use of small decimals and facilitate calculation.
Although the DOT initially had a maximum supply of 10 million, this was modified to allow for a rather alarming degree of inflation. Similar to the Band protocol, the Polkadot network uses inflation to incentivize participation in the network.
This is a large overall supply with all 1 billion tokens already on the market. In addition, the inflation rate is moderately high at 9.9% (according to Messari.io), which means that the dilution of value that a Polkadot holder will undergo is quite high. For reference, BTC has an inflation rate of 1.8% and ETH of 1.87% per annum.
The token itself plays a huge role in the ecosystem and game theory around it, and its accumulation of value through utility is solid.
DOTs are what control the relay chain. The relay chain will connect hundreds of chain guards and bridges to every significant cryptographic asset. DeFi on Polkadot will be able to process thousands of transactions per second for each crypto asset and will be able to connect to every available cryptocurrency liquidity pool. See reef.finance for an example. Points also receive value for each connected parachain (from auctions) and for each bridge (from auctions) and from each message passed between parachains (commissions paid in Dot). They are equivalent to digital real estate; Dot owns the land where a skyscraper is being built. Proof of participation gains is a minor part of what gives it value.
Trading volume
Trading volume is another excellent barometer of asset quality. This can also be faked by automated trading and wash on small trades, but just filter them out and see if there is actual liquidity on the larger platforms.
Excellent and constant trading volume over the last 3 months with occasional peaks and dips. It moves in the range of $2 billion to $8 billion per day, which is impressive for a relatively new asset. 24-hour trading volume did not fall below $1 billion in all of 2021.
Speculative potential
Now, we’re talking about the really impactful market forces.
Unfortunately, the
power of social media, especially Twitter, Discord, and Telegram groups, and to a lesser extent, subreddits and Facebook groups, often outweighs the fundamentals of a crypto project. As a result, we see trashy and half-dead zombie projects like Dogecoin, Electroneum, Verge, Tron (not dead but everything is fake around it, from the number of users and dapps to the unoriginal and uninspiring and incompetent leadership) and similar shitcoins rise in the market capitalization charts, sometimes even entering the top 10.
The speculative wave can lift you up in the skies but can, more often, destroy your wallet in a big zilch.
Some people are good at swimming with these sharks (Twitter characters hidden behind some limping nicknames like Crypto [INSERT ANIMAL) or Crypto [INSERT VERB]) who coordinate their pumps and shilling and price dumps. However, ordinary cryptocurrency buyers lack the time or skill to keep up with them and are used as plankton, food for larger sea creatures to feast on.
However, social media can be a place where you come across some good advice about hidden gems. When you read something that piques your interest, don’t get too excited and invest right away. Instead, put it on a watchlist and check out all the things we mentioned above.
The key thing to look for is authenticity: do the community, crypto personas social media posts, crypto media project articles look legitimate? Is it published by respected people with a strong reputation or by no-names who schill coins left and right? Is the community aware of the potential flaws of the chosen project and is it allowed to discuss them? Are there systematic complaints of sudden bans and censorship by community moderators?
A good project is not so difficult to recognize and once you see posts about it from other people – check their profiles, check the history of their tweets/posts, see if the recommendation comes as a genuine suggestion or an artificial shilling made out of self-interest?
Is Polkadot legitimate?
Polkadot enjoys a great reputation in vast crypto circles. The team behind it is particularly well-established and commands respect among crypto users. The project attracts the attention of a broad crypto base, tweets and posts about it on social media seem to be genuine and uncoordinated, meaning that people recognize it as a legitimate project.
There are tons of positive tweets about the revolutionary potential of Polkadot’s technology, and a large number of crypto Twitter analysts claim to trade and hold DOT for the long term. All this places DOT as one of the hottest coins to hold in the future.
Polkadot Price Forecast – summary
After analyzing all of the above about Polkadot, we can say that this is a legitimate project with a unique chance of actually being the project that will overcome the daunting task ahead of it – surpassing Ethereum to be crowned as the king of smart contract platforms. It enjoys a good reputation in crypto circles and could be a worthy investment in the short and long term.
Polkadot is an impressive achievement in blockchain technology and engineering. In a world of competing cross-chain protocols and hard-to-scale networks, Polkadot offers a refreshing, community-powered framework for building a better, more decentralized application ecosystem that is interoperable with existing technologies.
