Polkadot: A Promising Cryptocurrency or Just a Fad?
Unlike many other new cryptocurrencies, Polkadot is a project with genuine utility. To comprehend Polkadot
, we must first understand the problem it was designed to solve: the blockchain trilemma.
Polkadot Price Forecast: Will DOT Blow Up?
Polkadot's potential can only be estimated by comparing it to its nearest competitor, Ethereum because Polkadot has the elevated purpose of becoming the blockchain of blockchains.
While there are currently over 3,000 applications developed on Ethereum, they all suffer from Ethereum's lack of scalability. On the other hand, Polkadot developers can build their own blockchain projects (Parachains) without worrying about the blockchain trilemma because the Relay Chain provides security, interoperability, and scalability.
Parachains may be created in a matter of hours using drag-and-drop templates to make things even more accessible. This alone, I believe, will draw a more extensive developer base over time. According to sources, around 300 para chains have already been launched.
separation also allows it to process over 1,000 transactions per second. The fully built relay chain could theoretically process 1,000,000 transactions per second. For comparison, Ethereum can now only execute 15-45 transactions per second, with a future version aiming to scale to 100,000.
Polkadot's emphasis on interoperability with other networks suggests that it will play a more prominent role in Web3 and the Metaverse. Furthermore, Polkadot has created bridges that allow users to transfer their ETH assets to the DOT ecosystem.
While Ethereum gas fees fluctuate according to demand, Polkadot allows you to send zero-cost transactions.
Ethereum is based on Proof of Work (Pow), an inefficient method of securing blockchain transactions. While Ethereum intends to phase out Pow in the future, Polkadot is currently using a more energy-efficient option known as Proof of Stake.
Is Polkadot(DOT) a Decent Stock to Buy?
It is worth noting that Ethereum
intends to address some of its flaws (such as excessive gas fees) with a major update known as Ethereum 2.0. The specific release date of this update, however, remains unknown. So there are two reasons to include DOT in your cryptocurrency portfolio.
Will the Polkadot 100X price increase?
DOT was valued at between $4 and $5 in 2020. It reached a high of just over $50 in November 2021 and is currently trading at $26 as of December 2021.
While it may hit $100 by early 2022 and $500 by 2025, it must surpass the $3,000 threshold to make 100x your money. This is unlikely to happen in the next few years, but if Bitcoin continues to expand, it may happen someday.
You believe DOT will outperform, if not dethrone, ETH. DOT would be worth $428.21 in the latter situation. Although not quite 100x, an ROI of 16x is nothing to scoff at.
DOT can be used as a hedge against ETH. Because DOT is hovering around $26 as of December 2021, it has more room to grow than Ethereum ($4,000).
To emphasize this argument, even if ETH attained the market capitalization of BTC ($900 billion), its price would only double to $7,579.