Sun. Feb 25th, 2024

The price trend of the DOT cryptocurrency has been quite flat in recent months.

News about Polkadot and its native cryptocurrency DOT

The Actual Price it is close to that of mid-July, although slightly lower. After peaking on November 4, 2021 at almost $55, began a long four-stage descent that ended precisely in mid-July. The first phase ended already in December, with a yield around the $25 level. Thereafter, after a brief recovery, the second phase of the decline immediately began, ending on February 25 at $16. It is worth noting that $16 was also the price that the DOT cryptocurrency had reached in January 2021, that is, during the first phase of the great bull run of 2021. Therefore, it was possible to imagine that the decline would stop there. Instead, after a few weeks of recovery, it started to fall again in early April. This third phase ended at $8 in the days of the implosion of the Terra ecosystem, that is, a drop equal to 50% of the previous price. At the time, one might have expected steeper declines, and instead the fourth phase stopped at $6 in mid-July. After a fairly moderate recovery, it returned to $6 after mid-September and has remained there until now. The current price is 88% lower than the high from November last year and in line with the high from August 2020. In particular, this latest comparison suggests that the 2021 speculative bubble in DOT was particularly large. Although when it started to inflate in December 2020 the price was lower ($5). In other words, virtually all of the gains made during the 2021 bull run on DOT were wiped out in 2022.

Puzzling news: Gavin Wood steps down as CEO

That the situation is far from flourishing would also be indicated by the recent resignation of Gavin Wood. Gavin Wood is quite an important figure, because he was among the co-founders of Ethereum. In 2020 he founded Polkadot with the goal of going beyond ethereum. It has always been the main focus of Polkadot development, but it can remain the same. In fact, he just stepped down as CEO of Parity, the company that is developing Polkadot. Wood stated that he is a developer, not an administrator, and that he never wanted to be CEO. In fact, he also revealed that he had only agreed to be CEO for a limited period. In addition, he is still the majority shareholder of the company, but from now on he will “only” be the Chief Architect. So while in some ways his resignation as CEO might be seen as a bad sign, in reality, the fact that he can devote 100% to being the chief architect should be a good sign. In fact, while the cryptocurrency DOT lost 5% the day he declared that he would step down as CEO, gained 13% in the following days.

DOT Cryptocurrency Price Predictions

For these reasons, some analysts argue that the DOT cryptocurrency price may actually continue to sideways around the $6 mark. It has been more or less lateralizing around this brand for more or less three and a half months, and it may continue to do so for some time. It has been fluctuating very little for almost a month and a half, with such low volatility that it seems like an anomaly. This anomaly may disappear sooner or later, and the price of the DOT cryptocurrency may become volatile again. However, the fact is that analysts say that this eventual volatility could also trigger further declines, because at the moment there are not many particularly positive indicators for Polkadot. There are also other analysts who argue that the daily chart shows bullish signs, so in the short term the volatility could also push the price of DOT higher. In addition, the Polkadot project remains one of the projects with the greatest theoretical potential in cryptography. Therefore, the current prices could also prove particularly attractive in the event that, over the years, it succeeds in doing what it promises. Therefore, in the short term, the hypothesis that circulates the most is that of a continuation of the lateralization phase. In the short to medium term, it could even go up a bit, while in the medium to long term for now it doesn’t seem to give much indication of a possible new bull run. On the other hand, in the very long term it has potential, which, however, could only present itself in the next cycle of the crypto market, that is, the one that will begin in 2024 with the fourth bitcoin halving.

The price trend of the DOT cryptocurrency has been quite flat in recent months.

Polkadot Competition

As similar cases from the past show, the more time passes, the more competition increases. Cryptocurrencies that were able to establish themselves when there was little competition, such as Bitcoin Y ethereum, they now seem to have established themselves so well that they no longer face any real competition. Instead, cryptocurrencies that have not yet established themselves, such as DOT, will continue to suffer from competition, especially from any new project that spreads very quickly.
Polkadot is a project that has only been around for a few years, but if a direct and faster-growing competitor emerges in the next few years, it could suffer quite a bit. Currently, to be fair, there doesn’t seem to be a real project competing with Polkadot, in part because there are so few that have one of Ethereum’s co-founders behind them. But while competition for Polkadot doesn’t seem to be an issue right now, it could become one in the future if it fails to establish itself before some similar project gets off the ground. It’s extremely difficult to implement and get a project like Polkadot off the ground, which partly explains why no real competitor has emerged to date. But the world of cryptocurrencies evolves at the speed of light, so it is not possible to say that Polkadot will remain without major competitors, even in the future. And, for example, the same Ethereum could be suitable for some somewhat similar projects.

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By Farwa Raza

Farwa Raza is a writer who specializes in news articles. She has been writing on for over one years, and during that time she has written over 100+ articles on various topics ranging from politics to entertainment. Her goal as an author is to provide readers with the latest news stories while also providing her own opinion on them.