Polkadot price forecast for 2022 and 2025: will DOT remain in the top altcoins?

In this guide we will express our own Foreck.info opinion. and market opinion on the future of Polkadot, discussing the DOT price forecast for 2022 - 2025

Please keep in mind that you should take this and any other forecast with a grain of salt, as predicting anything is a thankless task, let alone predicting the future of a new, highly volatile financial asset like Polkadot.

Analytical portal

Before we dive into the dot forecast and answer the questions of whether Polkadot is a good investment or not, why Polkadot will succeed or fail, or why Polkadot will rise or fall, let's take a quick look at what Polkadot is and its current history.

What is Polkadot

Polkadot is a platform that allows various blockchains to transfer messages, including values, without trust; sharing your unique features while ensuring safety. In a nutshell, Polkadot is a scalable heterogeneous multi-chain technology. This interoperability aims to create a completely decentralized and private network controlled by its users and make it easier to create new applications, institutions and services.

Polkadot's native DOT token serves three clear purposes: providing network governance and operations, and creating parachains (parallel chains) through linking.

Polkadot can be considered equivalent to a set of independent chains (such as the set containing Ethereum, Ethereum Classic, Namecoin, and Bitcoin), with the important additions of pooled security and the ability for trustless cross-chain transactions. Many of Polkadot's native parachains will be written using the Polkadot runtime SDK (such as Substrate from Parity Technologies).

How does Polkadot work?

The Polkadot network uses a sharded model, in which shards called parachains allow transactions to be processed in parallel rather than sequentially. Each parachain on the network has a unique state transition function (STF). Based on Polkadot's design, as long as the chain logic can compile to Wasm and adhere to the Relay Chain API, it can connect to the Polkadot network as a parachain.

Polkadot has a Relay Chain that acts as the main chain of the system. Parachains create and offer blocks to validators on the Relay Chain, where blocks undergo rigorous availability and validity checks before being added to the completed chain. Because the Relay Chain provides security guarantees, pickers—the full nodes of these parachains—are not responsible for security and therefore do not require a strong incentive system. This way, the entire network is always aware of the many transactions taking place.

How is the Polkadot network secure?

Polkadot's mass interoperability through a set of common validators helps secure its multiple blockchains and allows them to scale their transactions by distributing their data across multiple parachains.

The network uses an NPoS (designated proof of stake) mechanism to select validators and nominators and ensure maximum chain security.

This unique trustworthiness scheme allows chains to safely communicate with each other using the same rules, but manage them independently of each other.

Available storage wallets

Polkadot local GUI wallet is not yet supported. But there are several options for mobile and browser applications.

You can download Polkadot wallet Signer for Android and IOS or Polkawallet to manage Relaychain and Parachain assets anywhere and anytime. The official wallet of the Binance Trust Wallet crypto exchange, the MetaMask browser application and Ledger or SafePal hardware safes are suitable for placing DOT tokens. See the full list of wallets here.

Basics

Many investors (traditional and cryptocurrency) will tell you that fundamentals are extremely important and should carry the most weight when evaluating a project. We agree with this statement to a certain extent.

Cryptocurrency is specific in the sense that it is difficult to rely on the fundamentals. Why?

Well, most crypto investors are not technologically advanced to understand if it is even possible to do what the project claims. This leads to exaggerated and unfounded roadmaps for many crypto project teams. These roadmaps sound amazing and people are flocking to invest in the project, although with little technical or economic knowledge they would see how ridiculous some of these ideas are.

Usage example

For this reason, it is always a good idea to check the feasibility of a use case by consulting with someone more technically astute.

For example, many of these projects noticed the transaction speed issue with Bitcoin, so they went all in on how fast their blockchains were.
But such speed was achieved due to decentralization. Essentially, they claimed to have solved the blockchain trilemma that had plagued geniuses for centuries. But about twenty-odd anonymous people solved it in a week or so. What does Polkadot do?
Not a very original use case. Another smart contract platform that aims to be faster and more efficient than Ethereum. Making money with ETH is a steep hill to climb. However, Polkadot has proven that it can rock the Ethereum boat as its popularity has been rapid, leading to many Ethereum projects also expanding their presence on the Polkadot platform. The delays have continued to put pressure on Ethereum, which continues to provide an amazing opportunity to its competitors such as Polkadot, Cosmos, NEO, Cardano and many others. Polkadot's main advantage over Ethereum and other competitors is its superior design right from the start. Parity Substrate and Polkadot solve all the problems that have prevented blockchain from realizing the full potential of the vision of what blockchain could be for the world: network security for small chains (which comes from the ingenious method of using Polkadot's relay chain to strengthen/secure small parachains) guaranteed performance of each parachain (is an advantage of heterogeneous sharding, i.e. prevents crypto cats from appearing and slows down all other dApps) scalability (infinite - there is no limit to the number of parachains that can be created in the ecosystem) compatibility (for BOTH cryptocurrency transactions and data exchange through a relay hub ; the latter opens up the potential for new use cases widely -> search for the term “external” if you want to learn more) governance (liquid democracy is a huge step forward!) ability to update smart contracts (if you are a developer, you know this is a serious problem for all chains derived from Ethereum)

Team

Another point that needs to be addressed is the assessment of the team behind the project. More often than not, these people will be the sole source of their statements (and fake LinkedIn profiles). So, while this is an important criterion, keep in mind that a cunning marketing team can fake legitimacy.

One huge RED FLAG about the team is the tweets, posts, blog about the price of their tokens. No legitimate team does this because they have better things to do - like working on their multi-million dollar project. Only the robbers run their official social media and blogs as the most blatant market manipulators (example: Justin Sun) to inflate the price before dumping their mountains of coins that they created out of thin air and handed over to themselves.

Such teams typically pay low-level crypto media publishing fees to publish "unbiased" articles and reviews of their projects in an attempt to create the illusion of a widely respected and attractive project.

Polkadot Forecast - Team

Very transparent and professional. No shilling price action or construction focused commentary. Polkadot was founded by the Web3 Foundation, a Swiss foundation founded to create a fully functional and user-friendly decentralized network as an open source project. Its founders are Dr. Gavin Wood, Robert Habermeier and Peter Chaban. Wood, president of the Web3 Foundation, is the best known of the trio for his influence in the industry as co-founder of Ethereum, founder of Parity Technologies, and creator of the Solidity smart contract programming language. Habermeier is a Thiel Fellow and an experienced blockchain and cryptography researcher and developer. Chaban is the technical director of the Web3 Foundation. With extensive experience in highly specialized fintech industries, he is currently helping develop the next generation of distributed technologies.

Community

Community - pay special attention to this. The size of the community doesn't matter as it can be easily faked (just check Fiverr or Upwork to see how easy it is to buy 100k Twitter followers or subreddit followers).

What's more important than the content that community members post—does it look real? Is it focused only on price? This allowed for critical thinking or the only acceptable posts were flirting and cult-like deification of the team (most often the team leader receives rock star status among timid investors).

Is Polkadot Worth Investing - Community Review

A very active subreddit with almost 20 thousand subscribers and quite active Telegram and Discord groups. It feels authentic and authentic, no bots, no low-quality posts about moons and prices.

Exchanges and wallet support

Another good indicator of how serious the project of other crypto agents is. Some smaller and marginal exchanges and wallets may pay for listings, but larger platforms like Kraken, Binance or Coinbase give legitimacy to the project that is listed there. So this is a great signal if the project is really worth something among its peers.

Why will Polkadot succeed?

Very good support among popular exchanges (Binance, Bitfinex, Kraken, Kucoin, etc.) and wallets (Atomic Wallet, Trust Wallet, Guarda, etc.).

Tokenomics

Sometimes a project makes sense and everything sounds right except for the symbolic role. It's just unnecessary and intrusive (so the team can take the money and get rich). Apart from the logic of the token, you should pay attention to its current and total supply. Inflation and the rate at which new coins are produced are also extremely important. The distribution between the team, early investors and long-term users is also of great importance. Check out Ripple and XRP to see how difficult it is to achieve organic price growth when so many people are dumping millions of new (unlocked) tokens into the market every week.

It is important that tokens are woven into the project with thoughtful incentives in mind. It's all about incentives in the world of cryptocurrency - why would a buyer hold a particular coin, what's in it for them? Different projects use different methods to entice people to buy and hold their coin.

Is DOT a good investment?

Polkadot has currently allocated 1 billion DOT tokens following the network redenomination from an initial maximum supply of 10 million in August 2022. Redenomination was undertaken solely to avoid the use of small decimal places and to simplify calculations. Although DOT originally had a maximum reserve of 10 million, this was changed to account for the alarming rate of inflation. Similar to Band Protocol, the Polkadot network uses inflation to incentivize participation in the network. This is a large total supply with all 1 billion tokens already on the market. Additionally, the inflation rate is moderately high at 9.9% (according to Messari.io), which means that the decline in value that a Polkadot owner will suffer is quite large. For reference, BTC has an inflation rate of 1.8% and ETH 1.87% per year. The token itself plays a huge role in the ecosystem and game theory around it, and its value is increased by utility. The DOT is what controls the relay string. The relay chain will connect hundreds of parachains and bridges with all significant crypto assets. DeFi on Polkadot will be able to process thousands of transactions per second for each crypto asset and will be able to tap into all the liquidity pools available in crypto. See example at reef.finance. Points also receive a value for each connected parachain (from auctions) and for each bridge (from auctions) and from each message transmitted between parachains (fees paid at points). They are equivalent to digital real estate; Dot owns the land on which the skyscraper is being built. Proof of winning a bet is only a small part of what gives it value.

Trading volume

Trading volume is another great barometer of asset quality. This can also be faked with auto and wash trading on smaller exchanges, but just filter them out and see if there is real liquidity on the larger platforms.

Polkadot future - trading volume

Excellent and stable trading volume over the last 3 months with occasional ups and downs. It ranges from $2 billion to $8 billion per day, which is impressive for a relatively new asset. 24-hour trading volume for all of 2022 did not fall below $1 billion.

Speculative potential

Now we're talking about really powerful market forces.

Unfortunately, the power of social media, especially Twitter, Discord and Telegram groups and to a lesser extent Facebook subreddits and groups, often outweighs the fundamentals of a crypto project. As a result, we see garbage and half-dead zombie projects such as Dogecoin, Electroneum, Verge, Tron (not dead, but everything around is rigged, from the number of users and decentralized applications to unoriginal and boring, incompetent management) and similar crap coins. rise in the market capitalization rankings, and sometimes even enter the top 10.

A speculative wave can take you to the skies, but more often than not it can crush your portfolio into dust.

Some people know how to swim with these sharks (Twitter characters hidden behind some lame monikers like Crypto) who coordinate their shillings and price pumps and dumps. However, ordinary cryptocurrency buyers don't have the time or skills to keep up with them, and they are used as plankton - food for larger cryptocurrency sea creatures.

However, social media can be a place where you can find some useful tips about hidden gems. When you read something that piques your interest, don't worry and invest right away. Instead, put it on your watchlist and check everything we mentioned above.

The main thing to look for is authenticity: do communities, social media posts by crypto personalities, or articles about a project on a crypto network look legitimate? Is it posted by reputable people with a good reputation or by unknown people who throw coins left and right? Is the community aware of the potential shortcomings of the chosen project and is it allowed to discuss them? Are there any systemic complaints about sudden bans and censorship by community moderators?

A good project isn't that hard to recognize, and once you see other people posting about it - check their profiles, check their tweet/post history, see if the recommendation comes across as a genuine suggestion or an artificial call made by oneself. interest?

Is Polkadot legal?

Polkadot enjoys an excellent reputation in the wider cryptocurrency community. The team behind it is especially famous and respected among crypto users. The project is attracting attention from a wide crypto base, and tweets and social media posts about it appear to be genuine and uncoordinated, meaning people are recognizing it as a legitimate project. There are plenty of positive tweets about the revolutionary potential of Polkadot's technology, and plenty of Twitter cryptocurrency analysts claim to be trading and holding DOT for the long term. All this makes DOT one of the most popular coins in the future.

general information

Polkadot Price Forecast – Results Summary

After analyzing all of the above on Polkadot, we can say that it is a legitimate project with a unique chance to actually become the project that will overcome the difficult task ahead of it to surpass Ethereum and become the king of smart contract platforms. . It has a good reputation in crypto circles and can be a worthy investment in the short and long term.

Polkadot is an impressive achievement in blockchain technology and development. In a world of competing cross-chain protocols and difficult-to-scale networks, Polkadot offers an updated and community-driven framework to create a better, more decentralized application ecosystem that is compatible with existing technologies.

Advantages and disadvantages

Pros:

• A promising platform with support for innovative technologies.
• Application integration is much simpler than, for example, in a similar Wanchain system.
• Token functionality.
• Support from major crypto exchanges.
• Strong team with extensive experience in blockchain technologies.

Minuses

• It is necessary to keep DOT tokens locked for the entire duration of the operation of your blockchain.
• Some technical aspects are still under development.

Measure in satoshi

The following advice is intended for long-term cryptocurrency holders and supporters only. For short-term speculators and crypto skeptics, it makes sense to use the dollar as the only measure.

You will always want to know if trading rather than simply using BTC was worth the effort. You should also consider the time you have spent trading as this time also matters.

For example, if you spent 15 hours trading altcoins and ended up with the same amount of satoshi, that means you wasted those 15 hours and it would have been better if you just held BTC.

Since Bitcoin sits between the Fiat and Alt Coin sandwiches, you should only trade the value of BTC.

For example:

If I invest in an altcoin at 0.17 cents per 10 thousand sats and after 6 months, I receive cash at 0.93 cents per 10 thousand sats. Did I make money on this altcoin?

The answer is no. Your opportunity cost was equal to holding the bitcoins, since the sat values ​​did not change, the price of BTC increased - this is what brought you the increase in your fiat capital. Not increasing sat on STEEM.

If, however, you cashed out STEEM at 20k SATs at 0.93 cents within 6 months, that means you made a profit in the amount of Satoshis as well as in USD (via Bitcoin).

Polkadot ICO: how much money the team raised for development

The Polkadot ICO can be divided into three phases:

• October 2022: $140m raised, 50% of tokens sold, price per token was about $28 (taking into account the current denomination of $0.28).
• summer 2022: $60m is expected to be raised, but exact data has not yet been disclosed.
• July 2022: $43.7m raised, tokens sold at $125 through auction (taking into account the current denomination of $1.25)

Token denomination

In July 2022, a second poll of Polkadot network validators determined that one DOT token should contain 10 billion Plancks, the smallest fractional units. One old DOT is equivalent to 100 new ones. The denomination actually took place in August 2022. Thus, all old prices before this date must be divided by 100 to conduct price analysis.

Setting ROI Targets

Frankly, many young cryptocurrency investors have truly unrealistic expectations regarding return and risk.

Many of them have never invested in any other financial assets, and therefore many seem to consider 10% ROI per month uninteresting, even though that is about what they should be aiming for.

I see a lot of people making decisions with the expectation of doubling their money every month. This has led to a huge number of newbies too quickly investing too much money in something on the front page of CoinMarketCap with a low dollar value per coin in the hope that cryptocurrency will save them from debt or a life of grueling cubicle work. And all in the next year or two!

Keep in mind that a 10% monthly increase when added up equals a 313% annual return, or more than 3 times your money. This may not seem interesting to someone who came in recently and saw their money go up 20x in a month on something like Aave before it crashed again.

How is Polkadot different from Ethereum?

Despite their similarities, Polkadot and Ethereum 1.0 have some key differences. Let's look at the main ones in the table:

In general, the main difference between Polkadot and Ethereum 1.0 is its architecture.

The Ethereum platform deploys its smart contracts, digital assets and decentralized applications (dApps) on a single Ethereum chain. While Polkadot provides a framework for creating your own interconnected blockchains that connect to Polkadot's Relay Chain.

In other words, Polkadot consists of a network of blockchains, while Ethereum only has one blockchain. Therefore, Polkadot and Ethereum 1.0 are two radically different blockchain systems.

This does not mean that Polkadot is an Ethereum killer. These 2 networks may coexist in the future and be used by different projects for different purposes.

It is also worth remembering that sooner or later Ethereum 2.0 awaits us.

Summing up

Consider the individual risk of each cryptocurrency and start looking for red flags:

• guaranteed promises of big returns (hint: it's Ponzi)
• placement in circulation that cedes too much to the founder
• vague technical documents
• unclear deadlines
• no clear use case
• Github without useful code and rare activity
• a command that is difficult to find information on or, even worse, anonymous

While all cryptocurrencies are risky investments, you can generally break down cryptocurrencies into mainstream "low" risk, speculative "medium" risk, and speculative "high" risk.

• The low-risk core is an exchange connection between cryptocurrencies and well-established ones. They will almost certainly be around 5 years from now and will recover from any bear market. Bitcoin, Litecoin and Ethereum are in this risk class, and I would also say Monero. Place most of your funds in this basket .
• Speculative with medium risk - these will be cryptocurrencies that usually have at least some product and are reasonably established, but higher risk than Core. Things like Stellar, Cardano, BNB, NEO...etc.
• High risk speculative risk is everything that has been created in the last few years: low caps, shillcoins, DeFi... etc. Most cryptocurrencies fall into this category, most of them will be practically worthless in 5 years. Invest a very small portion of your funds and only what you can afford to lose (and I really mean that because there's a good chance you'll lose everything).

Description

Polkadot is a network protocol that allows arbitrary data, not just tokens, to be transferred across the blockchain.
This means that Polkadot is a true multi-chain application framework, where things like cross-ledgers and cross-computations are possible.

Polkadot is the flagship project of the Web3 Foundation.

The project can transmit this data through public, open, permissionless blockchains, as well as private, permissioned blockchains.

This allows you to create applications that take data from a private blockchain and use it on a public blockchain.

Polkadot integrates a network of heterogeneous blockchains called parachains and paraflows. These blockchains connect to and are anchored by the Polkadot relay blockchain. They can also connect to external networks via bridges.

Where can I buy?

The coin is traded on the following exchanges:

Parachain Auction Dates

It has become known approximately when the auctions will take place and how many slots will be offered. It is worth adding that the Binance exchange also announced auctions, but you must understand that participation directly gives you a larger number of tokens and a lower probability of their complete loss, since the Binance exchange is centralized. To participate in the auctions, you need to purchase Polkadot coins (DOT). We recommend purchasing on Bestchange (previous link) as the safest aggregator of exchangers with a large selection of conditions.