The Polkadot token (DOT) is the native currency of the Polkadot protocol, which is a blockchain protocol that connects multiple blockchains together. Polkadot is a cryptocurrency that acts as both a token and also a decentralized protocol. Upon its arrival, Polkadaot has created a huge surge in the crypto market, with its native token DOT landing in the top 10 digital assets by market capitalization.
It is designed in a specific way to allow communications between unrelated blockchains, enabling data to flow between them without any intermediate. The Polkadot is known for its scalability and fast transaction.
Why Choose DOT?
The DOT token is the native cryptocurrency of the Polkadot network. It helps in various factors in the network like payments, staking, reward incentives, and so on. But the thing that makes the Polkadot token unique is its supply, there is an unlimited supply of the DOT token, with new DOT tokens being released into circulation at a 10% annual rate.
The DOT coin serves 2 main purposes in the Polkadot network. They are
- Staking. It is the process of locking up your crypto asset in a blockchain to earn rewards.
- Governance. The DOT coin enables its holders to participate in various decision-making processes of the platform.
Where and how to buy polkadot?
If you’re looking to buy the DOT token, follow the following steps:
- Choose an exchange: The first and foremost step to buying any cryptocurrency is to choose an exchange. Conduct thorough research and select an exchange. If you’re new to buying crypto then you have to create an account in the chosen exchange.
- Fix a budget and decide a trading pair: Now that you have an account in an exchange, you must decide how much you want to invest in the DOT coin and choose a trading pair. Note that, this is a very crucial step, so think carefully before you decide your budget.
- Place the order: After deciding your budget and trading pair now it’s time to place your DOT coin order. For this, you can search for the DOT coin, and then select the trading pair u decided. After that choose your payment method, verify details, and confirm your order.
Now that you placed your order, the DOT token will be successfully added to your wallet.
Polkadot current market analysis
The DOT token, which is the main cryptocurrency for the Polkadot network, debuted in the May of 2020 in an ICO, with a price of $0.29. Since then, it has come so far.
Within the last month, the price rise of the DOT token was about 8.32% with its current market value being $4.52. With a market capital of 6.78 billion as per the latest reports, even though the coin is showing signs of a bearish trend, there is still a chance for the coin to rise in price in the coming years.
Polkadot price prediction
Polkadot is a project that aims to create a decentralized web where different blockchains can communicate and cooperate with each other. This purpose can have a huge impact on the price of the coin in the coming years.
As per expert opinions and information from various sources, the DOT coin is likely to increase in market value in the coming years.
| Year | Price |
|---|---|
| 2024 | $ 4.67 |
| 2025 | $ 5.12 |
| 2026 | $ 9.87 |
| 2027 | $ 14.78 |
| 2028 | $ 20.01 |
| 2029 | $ 24.87 |
| 2030 | $ 32.65 |
Is it a good investment?
In the crypto market, it is hard to say if a coin is a good investment or not. In Polkadot’s case, even with the growing excitement of the new Polkadot 2.0, an updated version of the Polkadot, it is difficult to say whether the coin will soar high or fall behind.
With the current market speculation, it is expected that the coin may reach its record-time high of $42 by 2032. But the market is always susceptible to change, and as of now, we cannot say with 100% certainty that this future will happen. So if you’re planning to invest in the DOT coin, make sure to thoroughly research the coin and the risk involved in it.
Conclusion
The DOT coin is a relatively new cryptocurrency compared to many others in the market. After one year of its release, it has surged higher than most crypto coins reaching its all-time high of $42. And since then, even though it has shown a bearish trend, with the coin struggling to soar past the break-even point of $10, there is still a huge chance for this coin to peak in the market, with the release of the Polkadot 2.0. However, if you’re planning to invest in it, conduct thorough research before doing so.
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