Introduction
Cryptocurrency is one of the cryptocurrencies of the market and is actually a bridge that connects blocks of different layers. Although the code of Polkadot currency is among the top ten cryptocurrencies in the market and has a favorable position in this market, it seems that this is not the stopping point of this cryptocurrency and the potential for growth of Polkadot is more than this. Therefore, in this article, we intend to introduce this cryptocurrency and study the future trend of this cryptocurrency and its future price.
Introduction of Polkadot
Polkadot is the next generation of Blockchain technology that connects the various Blockchain networks and builds seamless networks. On the other hand, this platform is referred to as the facilitator of the next generation of the Web (Web 3), which breaks the monopoly of the Internet and makes it available to all users. With several key features, Polkadot seeks to transform the structure of Blockchain networks.
The Polkadot project was launched in 2017 and was expected to have an “initial coin offering” (ICO) earlier, but the cryptocurrency was officially launched in 2019. In general, Polkadot is an ambitious project that has a multi-chain infrastructure and is considered a competitor to the Ethereum currency code. In addition, Polkadot is working to implement the latest peer to peer network on the Blockchain platform. Polkadot uses a common multi-chain network that allows you to perform thousands of transactions in different parallel chains. As a result, this multi-chain network is able to solve the scalability problem and improve the growth rate of this technology by connecting Blockchain projects.
Polkadot token (Dot)
‘DOT’, which is a native token of the Polkadot network, is actually a functional token that plays a variety of roles in the Polkadot platform, including providing the right to control and monitor the platform for all users, providing sticking capability, sharing in the network, etc. Nevertheless, DOT is not a token based on the ERC-20 standard, as it is created on the basis of the Polkadot Blockchain. It is also good to know that the total number of defined tokens in the Polkadot network was ten million DOTs, of which five million units were auctioned during the initial public offering of Polkadot coins in 2017.
Basically, this token has three main purposes in the Polkadot network, which are:
- Sovereignty: the holders of Dot token have full control over this protocol, and the capabilities available to miners on other platforms, such as setting fees, modifying protocols, and adding or removing parachutes to protocols, are available to the holders in Polkadot.
- Operation: the holders of DOT token facilitate the Polkadot network consensus mechanism. In fact, the holders of this token, in order to weaken possible attacks, must actively participate in the network while maintaining integrity and consensus in the network.
- Payment: The network awards in the form of DOT tokens to the holders of DOT token and people who are active in the network.
Reasons for DOT token price growth
Many reasons for the growth of Polkadot can be imagined. In fact, this cryptocurrency, with nearly 200 different projects in the field of cryptocurrencies, has an up-to-date and coherent technology as well as a highly professional development team, which have led to the growing growth of this cryptocurrency.
The Polkadot was founded by Gavin Wood, one of the most influential people in the development of the Solidity programming language in the Ethereum network ecosystem. As a result of his presence in the Polkadot network, along with the cohesive and professional team of this cryptocurrency, we have increased the demand for this currency code, and as a result, we have witnessed a sharp rise in the price of Polkadot.
Kelvin Koh had previously predicted that the price of the DOT token would exceed $ 5, and soon the price of the currency code would rise to $ 6.57. On the other hand, Kelvin recently predicted that within the next year, DOT will become one of the top three currency codes in the market in terms of market value.
Predicting the future of Dot token
The popularity of Polkadot in some well-known projects such as Kosama, Edgeware and Sora has made the future of this token look very bright and promising, and it is expected that the price of Polkadot will grow significantly in 2021. Corey Miller, senior development director at ‘dYdX’ exchange and also a board member of Genesis Block Capital, attributes current growth of Dot token to the extraordinary performance of the third generation Internet foundation. In fact, the third generation Internet foundation is the founder and financial backer of the Polkadot project.
On the other hand, it is good to know that in 2020, a large number of Dot tokens were burned, and its supply was reduced by 100 times. In fact, the decision was made by a majority vote of Dot token holders, and the next day, the price of Dot-tokens increased dramatically, trading at a price cap of $ 3.95.
At the time of its launch in January 2019, Polkadot was priced at $ 1.59 and has since followed a neutral trend. After that, in the middle of 2020, the price of Dot increased, and from September to December 2020, it went through an almost uniform trend, until it started its upward trend, and at the beginning of 2021, it recorded a price of $ 10.63, which is the peak price of this token.
But apart from that, Polkadot is expected to reach $ 17.76 by mid-2021 and $ 22.45 by mid-2022. On the other hand, some experts believe that Polkadot will reach a price of $ 140 by 2030.
Concluding remarks
Polkadot aims to connect multiple Blockchains and create integrated chains of different Blockchains, relying on this capability to solve the scalability problem. On the other hand, this currency code is also considered as a competitor of Ethereum. On the other hand, given the strong popularity of Polkadot by users, institutions and companies, it seems that a bright future awaits this cryptocurrency, and many believe that Polkadot will soon be among the top 3 cryptocurrencies in the market.
In this article, we tried to predict the future of this token and the price ahead of it, while introducing of Polkadot and the native token of this network, i.e. DOT.
Summary:
Polkadot is a promising project in the field of cryptocurrencies, and given the diverse and innovative programs of its professional development team, it seems that this platform will be able to be used in many fields in the future. Dot token, on the other hand, has been able to experience significant price growth recently and is projected to reach around $ 17 by the end of this year and around $ 22 by the end of 2022. See the following link for more information: hoseinifinance.com