Polkadot has had a very changeable year. But it’s worth noting that anyone who has held it since January has some solid gains to show for. And for that reason alone, it has been a great year (as predicted) to be a crypto investor. Polkadot crypto is up more than 230% year over year. And there is reason to believe that a bullish future lies ahead. This Polkadot price prediction will explain why.
Polkadot was started in 2017 as a simple open source project by Parity Technologies. That same year, it held its first token sale, collecting 485,331 Ethereum coins. In 2017, this was around $ 143,172,645. But if Parity Technologies were to hold onto that Ethereum for future projects … well, that would mean they would be sitting on more than $ 2 billion to fund future projects. But we would guess that the actual number remaining is somewhere between these two numbers. Obviously, the team behind Polkadot has been pretty busy. And it’s an equally safe bet that they used at least some of that Ethereum to get where they are today.
Since Polkadot launched, it has found its way to Coinbase. This is almost always a boon on newer tokens when they are listed. But contrary to the norm, the value of Polkadot actually went down in the month after ascending to Coinbase. In fact, its value has been reduced by more than half. But to be fair, June and July 2021 weren’t particularly tough times for the crypto markets as a whole. Sometimes it just boils down to bad timing. And that seems to be the case with Polkadot.
Polkadot Price Prediction: Reasons to Be Bullish
Since his first checkered month on Coinbase, Polkadot has grown more or less in line with the larger crypto markets. It has evolved in a similar way to Bitcoin and Ethereum. And that bodes well for the future of Polkadot and its adaptability … at least if you believe in the blockchain technology behind crypto as a whole.
Polkadot can be characterized as a kind of blockchain of blockchains. It enables cross-chain transfers of almost any type of data or asset. So connecting to Polkadot allows users to interact with a wide variety of blockchains connected to the Polkadot network … of which there are many.
That being said, the idea of centralizing decentralized data can be a tricky undertaking. But the Polkadot data availability and validity scheme that helps chains interact is not arrogant. It enables individual chains to remain independent in their governance protocols.
Another admirable aspect of Polkadot is its forward-looking vision. The network offers almost unlimited scalability. It does this by enabling validation across multiple blockchains.
Additionally, it can be upgraded without hard forks, which has been a controversial topic in the past that has driven the price of governance tokens down. However, this allows for the seamless ability to add new features and fix bugs as soon as they are found. This adaptability could act as a catalyst in the future if positive and popular changes are incorporated into the future.
Additionally, those interested in sharing their opinion on the future of Polkadot only need the governance token in hand to be heard. Upgrades are coordinated in the chain. This means that its development reflects the views of the Polkadot community. All of this adds up to the reasons this Polkadot price prediction has a very bullish tone.
A word of warning
Polkadot has achieved what many other newer cryptos couldn’t in such a short amount of time. Since its inception a few years ago, Polkadot has grown into one of the top ten largest cryptocurrencies in terms of market capitalization. However, its market capitalization has shrunk with its falling value over the past month.
Since hitting an all-time high of more than $ 53 in November, the value of Polkadot has declined to less than half. Despite all of the technological innovations Polkadot has brought to its network, not all investors seem impressed. Being the first on the market with innovations does not always lead to market dominance.
Fusion Crypto has plans similar to Polkadot. BICO too. And Clover Finance Crypto is trying to do something similar in order to be able to pay for goods and services across multiple blockchains. To put it simply, Polkadot is facing new competition. And that could be one of the reasons why its value has decreased so much.
Long before either of us was there, Hydrox introduced the first chocolate sandwich biscuit. A few years later, Oreo hit the shelves, creating competition for Hydrox. Yes, it took a few generations, but these days, Oreo has dozens of varieties of its popular biscuit on the shelves. And good luck if you can find a pod of Hydrox at the grocery store these days. Despite our overall bullish sentiment, this Polkadot price prediction comes with the reservation of an uncertain future.
Polkadot Price Prediction: The Bottom Line
Investors can view the value of polkadot in two ways. It is either selling at a discount or it has peaked early and is on a downtrend. This technology is still new. And there is no certainty that Polkadot’s cross-chain capabilities will become the gold standard.
But the founders behind Polkadot have an impressive pedigree. Dr. Gavin Wood is also the co-founder of Ethereum. And he’s also the creator of the Solidity programming language for smart contracts. Robert Habermeier is an expert on blockchain and cryptography researchers and developers. And Peter Czaban has knowledge of the fintech industry.
Together, it’s hard to ignore the formidable trio behind Polkadot. And that’s why this Polkadot price prediction ends up with an overall bullish sentiment. Polkadot crypto is by no means a “safe bet”. But at the current price, it looks more pared than dying. And it wouldn’t be surprising that Polkadot would hit its all-time high again within the next year.
About Matthew Makowski
Matthew Makowski is a senior research analyst and writer at Investment U. He has been studying and writing about the markets for 20 years. Matthew, just as arguably in the process of identifying value stocks as he is discounts in the cryptocurrency markets, started mining Bitcoin in 2011 and has since sharpened his focus on the cryptocurrency markets as a whole. He is a graduate of Rutgers University and lives in Colorado with his dog Dorito.
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