The Polkadot dot token has risen slightly over the past few days and is currently among the top ten cryptocurrencies by market cap. After FTX collapsed, the price of the token recovered slightly and almost returned to where it was before the crash. What is it Polkadot price prediction for the end of the year and how high will the DOT price be in 2025? Let’s consider it in more detail.
What is Polkadot (DOT)?
Polka dot is a blockchain project established in 2017 by the Web3 Foundation, a Swiss non-profit organization. Dr. Gavin Wood, founder of Ethereum and programmer of the Solidity computer language for smart contracts, is the founder of the project. At that time, the ICO raised $145 million.
As a token of the network, 10 million DOT are given when the company is established. Just for clarity, the DOT amount was raised to 1 billion in August 2020. The project is still being worked on. Even so, some of the functions that the network needs are now functional.
Polkadot: How does it work?
Polkadot is designed to build a blockchain network that links other blockchains to each other and tends to produce an “Internet of blockchains.” Web 3.0 is also mentioned in other situations. The so-called parachain, which connects and interacts with the main type, is a typical selling point. Polkadot uses the NPoS (Nominated Proof of Stake) protocol as a consensus protocol.
How the exchange rate of Polkadot (DOT) to the United States Dollar in the past few days can be seen in the example from the database shown in the table.
Polkadot’s DOT token could rise quickly in the altcoin rally before the FTX crash. In just a few days, the price went from $5.80 to $7.35. The price dropped to $5.43 as a direct result of the crash. DOT may restore stability in the coming weeks. At the time of this writing, the price of DOT is trading at $5.58.
However, the DOT was forced to admit additional losses within days of the accident. Price from $ 5.02. This is the lowest in this bear market and 2022. Only in the last two weeks the token can be recovered fractionally. The upsurge has accelerated in recent days, with DOT rising from $5.40 to $5.64. Polkadot’s year-end predictions have improved as a result.
What causes prices to move in these ups and downs?
Polkadot saw a clear downward trend in the first half of the year. Since November, the price has dropped almost 90% due to the bear market. The price went down for a while in July. After that, things started to settle down.
After Bitcoin’s breakout above $21,000 in late October, the altcoin rally began. In the short term, this rally increased the DOT token fractionally. DOT, like other altcoins, can generate huge profits in a matter of weeks.
FTX crash delay up. Crypto exchange breakdowns cause huge losses for most cryptocurrencies. Unlike other tokens, DOT does not bounce back quickly and experience price drops. Prices have only recently started to rise again, as the overall market slowly recovers.
Polkadot Price Prediction: How High Will DOT Prices Be in 2025?
The price of DOT has increased a lot in recent days, raising the possibility that Polkadot’s predictions will be approved for the end of 2022 and also 2025. The price may still rise in the next four weeks. Much will be influenced by the progress of the overall market. The past few weeks have illustrated that DOT prices are barely able to rise in the overall market.
To push altcoins like Polkadot further, the price of bitcoin should start to rise and continue towards the level of $20,000. Polkadot can see a relatively long rise due to its own economic benefits. As a result, in 2023, the network can be the ideal basis for play-to-win game.
Increasing the significance of course Polkadot is very dependent on the growth of course Bitcoin and the market at large. If the market as a whole expands, only the smallest increase in prices will occur in the next four weeks. We predict a price increase of no more than 10-15%.
A price drop in the coming weeks is also possible, but we consider it unlikely. After healing from the FTX crash, the price orientation is higher, and by the end of the year, subtle price increases in cryptocurrencies are more common. As a result, we predict Polkadot’s forecast for the end of the year $5.60 to $7.20.
As we look at the next three years, things get even more interesting. The price of DOT is strongly influenced by the price of Bitcoin. The next Bitcoin halving will almost certainly be in 2024. As a result, the price of Bitcoin is expected to skyrocket in 2024, especially in 2025.
Bitcoin price rose 20 times from the bear market price to the highest during the previous bull market. In the case of DOT, the increase is relatively small. However, we can expect DOT prices to increase by a factor of 10 to 15 from a bear market to a bull market. So, in the next three years, DOT prices could range from $50 to $75.
Is it worthwhile to invest in DOT tokens?
Our Polkadot predictions show that short-term improvements are possible by the end of the year. Even so, you need to think about the long term. The year 2023, to be specific, may see a return to the cryptocurrency market. This should also really enable the Polkadot course to grow stronger, especially since the number of use cases is expected to grow significantly over time.
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