Polkadot is back in the news. Cryptocurrencies seemed to have boomed in terms of price right after the covid-19 pandemic affected the valuation of several fiat currencies worldwide.
Several cryptocurrencies have emerged in the last 5 years. And while some of them have thrived and grown, some have faded out of existence or popularity.
Polkadot (DOT) has been one of the cryptocurrency market survivors over the years. DOT is one of the most reputable projects established to add value to the blockchain niche.
In this article, we analyze the current details of the Polkadot protocol.
In recent years, several blockchain projects have tried (and succeeded) in concentrating more on broad infrastructure-related improvements than on particular applications. One of these projects is Polkadot (DOT).
Polkadot is perhaps one of the most effective initiatives to enhance the core technology that drives decentralized applications (dApps).
The Polkadot protocol, in essence, aims to act as a link between several blockchain ecosystems. It enables communication between these networks without the use or need for middlemen.
It might be easier to think of Polkadot as a network of networks that enables communication between even massively different blockchain topologies.
This is achieved through parachains (or modified blockchains with their own features and currencies). The Polkadot protocol was modeled around the Ouroboros protocol and employed the nominated proof-of-stake (PoS) consensus mechanism.
Polkadot was launched via Initial Coin Offering in 2017 and was met with a roaring success. The protocol raised more than $140 million on launch after selling over 10,000,000 tokens from its total supply.
DOT/USD was set at $0.30 before the ICO. However, the hype and the initial rush from its traders and investors pushed the cryptocurrency to a resistance level of $6 by the end of August 2020.
By mid-September 2020, DOT traded at $5.2 but soon plummeted. The cryptocurrency dropped heavily in the first half of October 2020 to $4.42, further dipping to $3.86 in mid-October 2020.
By the end of the month, it had risen again to $4.15. However, the covid-19 pandemic brought the best of Polkadot forward, and the cryptocurrency started to rally upwards, eventually reaching $5.88 in November 2020.
Polkadot has remained above this price level ever since then.
This leads us to the predictions of where cryptocurrency may be headed over the coming year.
Because of the cryptocurrency market's well-known high volatility, it is challenging to predict values and impossible to do so precisely. Because of this, it is important to conduct your own research.
The rest of 2022 could bring about significant changes. However, in the event of bullishness, a maximum price of $10 – $12.29 in November and December 2022 is anticipated, followed by a minimum price of $6.55, according to metrics from Bitnation.
It is anticipated that November's average price will be around $8.03.
The price of Polkadot is expected to begin the year 2023 at $10 – $12.26 and have a minimum price of about $11 over the first quarter of the month.
After reaching for and breaking the $15 zone, Polkadot is expected to hit the $23.66 zone and surpass this level in 2023 as it heads towards its $54 all-time high over the rest of the year.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.