The Polkadot price has been under intense pressure in the past few months as concerns about its ecosystem growth remain. The DOT price decline has also been in line with the performance of other cryptocurrencies like Bitcoin, Ethereum, and Solana. It is trading at $18.37, about 67% below its all-time high.
Polkadot is a blockchain project that is in the web3 industry. Web 3 is a fast-growing but highly controversial industry that seeks to decentralize the web. So, for example, instead of using a centralized platform like Google Drive, you can instead use one that is decentralized in nature.
Polkadot describes itself as a “next-generation blockchain protocol that unites an entire network of purpose-built blockchains, allowing them to scale.”
In its light paper, Polkadot identifies several advantages of its network compared to other platforms like Solana, Ethereum, and Binance Smart Chain. These advantages are its heterogeneous sharding, scalability, and transparent governance.
Polkadot has many use cases. For example, it can be used to build apps in decentralized finance (DEFI), non-fungible tokens (NFT), Internet of Things (IoT), web 3, and even lending.
According to CoinGecko, Polkadot has a market capitalization of more than $19 billion, making it the 9th biggest cryptocurrency globally. This ranking is bound to change depending on the Polkadot price performance.
Who founded Polkadot?
One of the reasons Polkadot has done well over the years is its founder. The platform was started by Gavin Wood, one of Ethereum’s co-founders. Gavin also founded the Web3 Foundation and Parity Technologies. Parity helps businesses to embrace blockchain technology.
Gavin Wood net worth?
One of the most popular questions is on the overall net worth of Gavin Wood. To be fair, it is a bit difficult to estimate his net worth because Polkadot is not a publicly-traded company. It is also unclear the number of DOT and KSM tokens he owns. Nonetheless. Entrepreneur estimates that Gavin Wood’s net worth stands at about $450 million, making him one of the wealthiest people in the industry.
Polkadot vs Kusama
Another common question is on the difference between Polkadot and Kusama. Gavin Wood started the two blockchain projects, and they operate similarly. The main difference is that Kusama is seen as a test-ground. It is where developers start their Polkadot developing journey.
In Kusama, developers build projects, identify bugs, and then solve them before migrating them to the Polkadot ecosystem. On the other hand, Polkadot is the stable version of the ecosystem. KSM is the native token for the Kusama ecosystem, and its market cap stands at more than $1.4 billion.
Projects built in Polkadot
Polkadot is never concerned about the number of projects in its ecosystem, unlike other blockchain projects. It is, instead, focused on the quality of these apps. This explains why the developers decided to launch Kusama. Also, before apps move to Polkadot, they go through what is known as parachain auctions.
According to DeFi Llama, there are now 12 DEFI apps built using Polkadot that have a combined total value locked (TVL) of more than $1.2 billion. The biggest projects built in Polkadot are Acala, Moonbeam, Astar, Parallel, and Clover. During the previous parachain auctions, users staked more than 93 million DOT tokens, currently valued at more than $1.6 billion.
Polkadot latest news
The Polkadot price has remained under pressure lately because of several key news. First, there is news that the Federal Reserve is getting ready for rate hikes this year. Historically, risky assets like Polkadot tends to underperform in a period of high-interest rates.
Second, another important piece of news is that a research company noted that Polkadot has the least carbon footprint among the biggest chains. This is notable because we are in an era where investors are focusing on the environment.
Third, Polkadot price has struggled even as the blockchain company considers becoming a lead sponsor for Barcelona. Barcelona is one of the best-known football clubs in the world.
What is the Polkadot price history?
The Polkadot price started trading at around $50 in 2020. Unfortunately, shortly after launch, the price crashed hard and hit a low of $2.7 in the same year. However, that was an exciting time to buy since the price surged during the cryptocurrency rally and hit an all-time high of $54 in November 2021.
Polkadot price prediction 2022
Is Polkadot a good investment?
A common question among crypto enthusiasts is whether Polkadot is a good investment in 2022. We will do a technical analysis to determine where the DOT price will end the year to answer this question.
The daily chart shows that the Polkadot price has been in a strong bearish trend in the past few months. The coin has managed to drop by about 67% from its highest level in 2021. It has also moved below the 78.6% Fibonacci retracement level. Most notably, it has formed a bearish flag pattern.
Therefore, the Polkadot price will likely continue falling in 2022. If this happens, the next key level to watch will be at $10.
Polkadot price prediction 2025
The past decade has proven how difficult it is to have a long-term forecast for a cryptocurrency. For example, everyone would have laughed if you said that Bitcoin price would one day surge to almost $70,000. However, I believe that the growing adoption of cryptocurrencies will lead to higher Polkadot prices by 2025.
However, a study by Long Forecast estimates that the Polkadot price will end 2025 at about $12, which is significantly lower than where it is today. Another estimate by Wallet Investor is that the DOT price will keep rising by 2025, as shown below.
Polkadot price forecast 2030
While doing a DOT price forecast for 2025 is difficult, doing one for 2030 is much harder. But we can use some assumptions. One way is to understand that cryptocurrency prices tend to move in tandem. Therefore, the driver of most altcoins will be the performance of Bitcoin.
And today, the ratio of Polkadot and Bitcoin is about 1,833. This means that one Bitcoin is worth these coins. And a panel of experts polled by Finder expects that Bitcoin will surge to $406,000 by 2030. Therefore, if the ratio stocks, the Polkadot price could rise to $220 by 2030.
What is a Polkadot parachain auction?
A parachain auction is a process that is unique to the Polkadot ecosystem. It is a process in which developers auction their coins to interested individuals. These developers raise the DOT token, which they can use to develop their projects.
What is a parachain crowdloan?
Another key concept in Polkadot is known as a parachain crowdloan. As the name suggests, these are loans based on blockchain technology. They raise either KSM or DOT and must repay them at an agreed date/
How to invest in Polkadot
To invest in Polkadot, you need to create an account in a centralized platform like Binance or Coinbase, deposit funds, and trade. You can also buy the DOT token in the form of a CFD using brokers like ATFX.
How much did the Polkadot ICO raise? Like all cryptocurrencies, the foundation of Polkadot was through an Initial Coin Offering (ICO). During the ICO, the developers raised a total of $133 million. This means that ICO investors have had returns of about 63 times.