The cryptocurrency market is an exciting and chaotic place to be right now, with both record highs and record plummets in the last few months. Polkadot is no exception to this rule.
If you’ve not already jumped on this unique cryptocurrency, we’ve got everything you need to know, including our predictions for the price of Polkadot.
What is Polkadot?
Not all cryptocurrencies are made equal and Polkadot is one to pay attention to. Why?
Because it’s not yet another meme coin or fad, Polkadot has got some unique traits that make it appealing to investors.
Polkadot was created by Gavin Wood in 2016. If you think you recognize that name, you’d be right as he’s a co-founder of popular cryptocurrency Ethereum, alongside Robert Habermeier and Peter Czaban.
Wood also founded Parity Technologies in 2015, as well as inventing Solidity. This is the language used to create decentralized applications on Ethereum.
This company now maintains Substrate, the software development framework used by developers who wish to create parachains for Polkadot.
Polkadot’s purpose is to create an ecosystem of cryptocurrencies, much like Ethereum or Cosmos. The project hopes to build a space that allows any blockchains to engage with one another in a secure environment. The end goal is to lay the foundation for a completely decentralized internet.
Where Does the DOT Currency Fit In?
While Polkadot technology is still evolving, DOT cryptocurrency is the means to fund it. It’s already raised $200 million from investors who believe the future of the technology is bright. This makes it one of the most well-funded blockchain projects to exist.
The currency has a key role in maintaining the Polkadot network. Those who invest and stake DOT can vote on network upgrades. Each vote is proportional to the amount of currency they stake.
When investors stake DOT, they’re rewarded for doing so. For example, staking DOT on the Kraken exchange yields around 12% annual returns for investors.
It’s also important for investors to understand that unlike many cryptocurrencies DOT was not created with a capped supply. The first rules stated new DOT tokens would be released continuously with a predetermined inflation rate. However, stakeholders voted to change this rule to cap the supply to 1 billion.
Price of Polkadot
Now you understand the history of DOT, let’s look at the Polkadot price. At the time of writing a DOT token is worth $28.46, after a small drop yesterday.
The cryptocurrency has had strong performance since its launch, despite a volatile market. Most well-known investors predict a $50 value by the end of the year. Some more optimistic investors are predicting $75 isn’t out of reach either.
For long-term investments, at the rate of steady growth so far by 2025, DOT is predicted to hit the $250 mark.
More Cryptocurrency News
Polkadot is a good investment choice in a volatile market with steady growth. This is thanks to the technology underpinning the cryptocurrency. Experts say the price of Polkadot is expected to continue to rise throughout both the short and long term.
You can find more cryptocurrency news and investment advice on our blog.
Read Also: A Quick Beginner’s Guide to Crystal Meanings and Uses
