With a valuation of more than $6.5 billion, Polkadot is currently scraping the top 10 most valuable crypto projects by market cap. But does the DOT network’s native token have much more potential and can even Ethereum be dangerous?
The following overview shows the Polkadot technology features and the differences on the Ethereum network. Also, see the current forecasts for the short, medium and long term price of DOT/USD.
Polkadot: New Internet Pioneer?
Polkadot’s purpose seems to be very visionary and different from most other crypto projects in terms of technology. With Polkadot, a new form of the Internet will be established, based on decentralized blockchains. Experts are talking about Web3 here, which is supposed to reach a new level of technology.
This decentralized Internet should be controlled by its users and make it much easier than before to create your own new applications and services, but also Internet companies. Behind the project is the Swiss Web3 Foundation, whose vision is to create the first fully usable decentralized web. It is also interesting that Gavin Wood, former CTO and co-founder of Ethereum, is the creative mind behind Polkadot.
When what #Web3 used first?
In 2014, Gavin Wood, founder @polcaphonc and co-founder of #Ethereumuse the term “Web3” to describe a decentralized online ecosystem based on #blockchain. pic.twitter.com/14GOnmWWdt
— Sandy.NFT (@sandy_carter) October 12, 2022
A great resource thanks to the open source concept
Thanks to its technology, the Polkadot protocol can connect independent blockchains and allow them to exchange information and make transactions without requiring permission from this network.
Due to the principle of public and private, permission-free blockchains, the Polkadot network is even more independent and decentralized for users than, for example, the Ethereum network.
Polkadot uses an open source multichain sharding protocol for this. It creates the option to process transactions not only within a network, but across blockchain boundaries. Polkdadot describes the technology used as Metaprotocol Layer 0. In this context, meta means that there are many parallel chains. In addition, a special feature is that the network coding can be updated autonomously according to the wishes of the Polkadot community.
Polkadot is less used than Ethereum
Although Ethereum has achieved a major technological step with the merger compared to the Polkadot network, there are still differences:
In addition to cross-chain use, Polkadot is characterized by its high scalability, great user freedom of the governance structure, its high security standards and its special energy efficiency. The bottom line is that Polkadot creates the greatest possible freedom with the greatest possible security, flexibility and speed.
Although Polkadot has built a significant status in the crypto market in the 2020/2021 bull market and has risen to become one of the most used networks, it has not yet been able to keep up with projects like Cardano or Ethereum. This is noticeable in market capitalization, but also in daily use and transactions in the network.
Cardano: double DOT value legitimately?According to coinmarketcap.com, Cardano is currently valued at $12.5 billion. That’s almost twice as much as Polkadot. And Ethereum even plays in a different league in this comparison. Ethereum is currently valued at $150 billion. That’s about 25 times more than Polkadot.
So given its potential, is Polkadot still undervalued and could it be a big winner in the next bull market? Could buying DOT be an even better option than buying ETH or buying ADA? Comparing the price forecasts for these coins can provide clues.
According to the analysts at Digital Coin Price, DOT could still see a small increase this year and rise to a maximum of $7.19 after the price is currently below $6. The forecast predicts the jump back over the 10 dollar mark as early as next year. That would already be a proud return of more than 60 percent if you buy the DOT token now on a crypto exchange.
6X expected for the DOT course
In the medium term, Digital Coin Price expects prices around 20 dollars for DOT. And those who invest in DOT long-term could be rewarded with a price increase to more than $40 by 2031. That would be more than 6 times the current price. The forecast is equally bullish for Cardano. An increase from less than 0.4 dollars currently to 2.6 dollars is expected here.
The numbers look pretty impressive, but they are behind the forecast for Ethereum. Here, the price of ETH is expected to increase to almost $8,600 in the same period. That would be more than 7x the current ETH price. Ethereum would undoubtedly strengthen its position against Polkadot in the long term as well.
Bearish prognosis: total loss is possible?
Wallet Investor’s forecast for the DOT price, on the other hand, is extremely bearish. The analysts expect the price to fall to $0.225 for DOT/USD within a year. That would be a 96 percent loss from current levels. They also paint a negative picture in the medium and long term, with the price continuing to fall.
However, the forecast for Cardano’s course is just as dire. On the other hand, the analysts for Ethereum expect huge price gains of several hundred percent in the coming years.
The Coin Price Forecast analysis is between the very bullish and extremely bearish forecast for Polkadot. Therefore, a small rally is expected for the rest of 2022 which could take DOT above $7.5. However, a jump above the $10 mark is not expected until 2025. In the long term, the price of DOT could exceed the 20 dollar mark and increase by 270 percent compared to the current level.
The all-time peak of 2021 is still a long way off for DOT
The forecast for Cardano is almost the same. Here the analysts expect a growth of 260 percent by 2034 to a peak of 1.3 dollars. Ethereum is also expected to rise in this percentage range to around $4,400.
Overall, however, DOT performs little in comparative forecasting. Not only towards Ethereum, but above all towards our own previous development. DOT/USD was already trading at $55 in 2021. If the analysts are correct, the coin will not be able to reach this level in the near future.