Polkadot has captured the attention of cryptocurrency market with significant rise in value of its token DOT. Polkadot is a Web3 foundation’s flagship project, which is a Swiss organization to make the decentralized web functional and user-friendly.
Polkadot’s native token is DOT, where it was able to raise over $140 million during its ICO in October, 2017. With sudden spike in the market capitalization during September 2020, made DOT to the top 10 of cryptocurrency list.
- Coinpedia expects the market price of DOT token to hit $20 mark by the end of 2021
- Polkadot is a viable investment for investors seeking returns in the long term
Polkadot’s price predictions
By the beginning of the year 2021, the market outlook for Polkadot seemed favorable with a trading price of almost $9. Continuing this upward surge in market value, DOT recorded an all-time high of $18.9 on January 17th, according to CointoMarketCap. With this Polkadot was able to reach a market capitalization of nearly $15 billion.
Market analysts believe that the token DOT is expected to maintain this bullish trend towards the mid of the year, resulting gains in the range of 20%-25%. The market value of DOT is expected to rise between $20-$30 by the third quarter and to maximum of $50 by the end of the year, if the market continues to be bullish.
Analysts at Conpedia stays positive on their price prediction on 2021, expecting a continuation of the price rally from 2020. According to them the year end value of DOT will be above $10. With the expectations of a similar trend in the year 2022, they expect the price to reach $20 mark. Going further to 2025, a price prediction of more than $35 with a peak of $42 is determined by Coinpedia experts.
With the use of their AI technology Walletinvestor forecasts a negative outlook for DOT. Although the year 2021 forecasts seemed to be bullish with a bullish run, a total crash is to be expected. According to Walletinvestor, the total loss is considerably low in the case of DOT. The reliability of this forecast tend to be doubtful due to the lack of explanations.
Digitalcoinprice too share a similar market outlook for DOT as determined by the analysts at Coinpedia. Being more optimistic, they expect the price of DOT to be over $20 by early 2021. Even though, when it comes to the year 2022 Digitalcoinprice expects only a mild rise in price with an average value of $26. Thereafter, an annual rise in value by an average of $10 is expected.
Polkadot has secured a strong place in the crypto market due to its special concept where it allows external blockchain be connected to its own relay chain through its interoperable approach. When looking at the price predictions of Polkadot, overall market view is positive for the DOT token, only exception being the predictions by Walletinvestor. This make DOT a viable investment for investors seeking for returns in the long term.
It is important to note that purchase decisions should not be made solely depending on these forecasts. These price predictions are deduced through mere technical analysis done by the market experts. Technical analysis often ignores the impact on price due to external influences. At times, external influences have significant impact on the value of DOT token. Therefore, it is advisable to conduct investment after undergoing a critical analysis on the future prospects of the market.