Polkadot (DOT) Price Prediction

Polkadot is a crypto project launched in 2020 to provide many solutions for the financial space. This protocol provides opportunities for cross-chain transfers of data while offering Defi and parachain solutions.

Natively, this platform has a coin named DOT, which has benefited many investors since its launch. Launched at an ICO price of merely $0.29, Polkadot has grown with over 9900% in value. The excellent performance of the token in markets has always brought more investors.

As 2021 ends and 2022 starts, some investors may have questions about the DOT performance in 2022. This analysis summarizes 2021 DOT prices and what to expect come 2022.

Polkadot Gaines Over 240% in 2021

Polkadot is one of the crypto assets that performed well in 2021. The growth is due to several factors that affect the crypto market and the coin.

At the start of 2022, DOT was trading at $8.3, an immense increase from its value when listing in Coinmarketcap. On 1st January, the coin was already on an uptrend that began in December 2020. The uptrend continued leading DOT to a peak value of $ about $47.9 in May. However, things turned bad when DOT lost its value to $11.

A few months later, DOT was in another bull run going to its ATH at $53.88 on 4th November. When writing this report at the end of December, DOT was trading at  $28. Statistical analysis indicates that DOT gained a massive 240% in 2021. So, what contributed to DOT’s growth?

One of the primary reasons for the surge in DOT values is the BTC price patterns. At the start of 2021, BTC was in a bullish streak triggered by several factors, including the halving. Ethereum and other cryptos like DOT, with the latter increasing sixfold. When crypto took a bearish course, DOT also lost its value. It’s clear that the crypto market price fluctuations also affected DOT.

Another factor is its native developments. One development is the expansion of Polkadots Defi space. Several projects have been using Polkadot as their base of operations. Some projects based on the Polkadots development tool (Substrate) have raised millions.

The Polkadot parachain growth has been a major driver of the network’s growth. According to multiple sources, Polkadots parachains solve issues seen in Ethereum, including fees and transactions throughout. In fact, Polkadot has over 1000TPS.

Some reports indicate that there were already over 350 platforms built on the Polkadot network by August. One of those projects, Kusama, has performed quite well and proven massive potential. The success of the Polkadot development sector has been a serious driver to Defi’s growth.

Polkadot in 2022

There are a lot of questions from the DOT community, especially concerning the upcoming developments. So, what does 2022 hold for the Polkadot Ecosystem?

Of course, one of the major things to expect from Polkadot come 2022 is the growth of its Defi. Since the network ended 2021 with nearly 400 projects, investors can expect more new projects in 2022. Polkadot may get dozens or even hundreds of new projects.

Projects already live like Moonbeam, Acala, Kilt Protocol, Ocean Protocol, Darwinia, and Kusama also have high prospects in 2022. Due to their use cases, they can gain massive TVL in 2021 and grow further.

More expectations come from the project’s social media growth. Today, Polkadot has over 1 million Twitter followers. As the number of Polkadot-based Defi projects increases, expect to see more followers and a larger community.

Polkadot is one of those projects termed Ethereum Killers. There are other projects like Solana and Cardano, also termed Ethereum killers. So, which of the projects will stand out at the end of 2022.

While Polkadot is trying to kill Ethereum, the latter solve its issues. Ethereum will be merging its beacon chain in mid-2022, according to various reports. When Etherum provides the solution, won’t it kill the likes of Polkadot? Indeed, the crypto world is growing, and there will be space for all those projects, but it will be interesting to see which of those will top.

The developments highlighted above will affect the Polkadot ecosystem. But, how will those developments impact prices?

Polkadot Technical Analysis and 2022 Price Prediction

When writing this report, DOT traded in the markets at merely $28. It was actually in a short downtrend, having dropped from its 24 hour high of about $29. Some experts do not anticipate large changes in DOT prices. Some set their price prediction at merely $30 at the end of 2022. On the other hand, FX Streets experts believe that Dot will rally to $82 in mid-2022, opening it to further gains towards the end of 2022.

However, the trading view technical analysis indicates the possibility of an excellent 2022. The prices have been recently dropping since some investors may have lost confidence. Tradingview indicates an intense sell situation in the markets. Also, when writing this, the DOT value was close to its 200 day moving averages, but things might be better come 2022.

Walletinvestor, one of the popular analysis networks, set their predictions on Dot prices. According to their algorithmic models, this coin could go to $55.19 by the end of 2022. Due to many different opinions, it’s good to wait and see where 2022 takes Dot.