Polkadot (DOT) on Spotlight

Polkadot (DOT) is one of the hottest cryptocurrencies in the market. Currently ranked 8th largest cryptocurrency by market capitalisation, the coin has moved up over 1,000% in the last 12 months, from nearly $4 (₹351) to over $40 (₹3,375) level. It reached an all-time high price of $55 (₹4,416) on 4th Nov 202. The following are some of the vital info of Polkadot cryptocurrency. 

• Coin Rank: 8th
• Market Capitalization (as on 17th Nov 2021): $40.5 billion
• Market Dominance: 1.55%
• Coin Economics: Inflationary
• Annual Inflation Rate: 10%
• Total Coin Supply: Over 1.1 billion DOT
• Circulating Supply: 987,579,314.96 DOT
• Consensus Mechanism: Nominated Proof-of-Stake

Technical Charts: Polkadot (DOT) Price Prediction

For the last 12 months, DOT has been rising consistently, with minor corrections happening in between. On the daily chart, we can see a correction happening, and the DOT price has corrected by almost 30% from its all-time high level (a positive development for the long term growth).

However, the silver lining, the 50 Day EMA is proving to be a strong support zone as earlier. On the Fibonacci Retracement indicator, we can get more clarity on the key support levels. 

The 38.2% ($38.10 price level) on the Fibo scale provides strong support and has bounced back twice after testing it for support. Overall, the momentum looks weak (RSI is also indicating the same), but for long term investors, it is a good buying opportunity. If DOT clears above the resistive $45 level comfortably, then it can resume its upward movement. 

A Brief Overview of Polkadot Blockchain

Polkadot is often referred to as one of the Ethereum killers in the crypto market. And that is because its functions are similar to Ethereum. On top of that, the Polkadot blockchain is highly scalable and enables cross-chain interoperability across different blockchain networks. 

In simple words, Polkadot is a blockchain of blockchains, a true multi-chain platform, where different blockchains created on the Polkadot relay chain and other blockchain networks can communicate with each other. Currently, there is a lack of interoperability between different blockchains, preventing the mass adoption of blockchain technology.

The project was founded by former CTO of the Ethereum project, Gavin Wood, Peter Czaban, and Robert Habermeier, in 2016, and the network launch took place in May 2020. 

Utility of DOT Tokens

As per the Polkadot whitepaper, DOT tokens have three utilities. It includes:

• Providing governance for the network
• Staking to support the network operations
• And, supporting the creation of blockchains that connect to Polkadot

Speaking about staking, Polkadot offers a staking reward of close to 14.7%.

Polkadot Adoption Rate

Within a quick time, Polkadot has attracted huge institutional investors’ interest. For instance, 21Shares AG, a Swiss-based fintech company, has launched Cardano and Polkadot based ETP (exchange-traded products). The ETP attracted investment from big institutions like Goldman Sachs, UBS, JPMorgan, and others. 

In the ICO round in Oct 2017, leading VC firms like Polychain Capital, Nirvana Capital, ZK Capital, and others invested close to $145 million in DOT tokens. 

On the staking front, over 53% of the total supply or 603 million DOTs staked in the network. And, as per the Polkadot whitepaper, a staking rate of 50% is ideal for keeping the network stable. However, the staking rate varies as per the network activity level and can go up to 75%. 

The above data shows a strong adoption rate of the Polkadot ecosystem. Therefore, with an increasing adoption rate, increasing staking percentage and growth in the crypto ecosystem, Polkadot is destined to shine and can turn out to be a multi-bagger in your portfolio over the long term. 

Download the CoinSwitch Kuber App to start investing DOT starting at ₹100.