Polkadot Cryptocurrency (DOT) could see a significant price increase in the next 6 months.
For Trevor Soaretrader and market analyst, DOT will be a standout performer in 2025 “due to a number of future catalysts, a strong developer ecosystem, and a massive growth ceiling compared to Solana.”
As explained in Criptopedia, educational section of CriptoNoticias, Blockchain-parachains-escalabilidad/” target=”_blank” rel=”noreferrer noopener”>Polkadot It is a network designed to improve interoperability and processing speed of other networks on the marketas Bitcoin/”>Bitcoin, Ethereum-eth/” target=”_blank” rel=”noreferrer noopener”>Ethereumamong others.
The analyst also points out that, unlike the Solana networkwhich focuses primarily on transaction speed, Polkadot is developing a “global supercomputer like never seen before.” According to his point of view, when he completes the objectives outlined in his roadmap, the demand for the token will grow significantly.
Likewise, it highlights that has the largest number of full-time developers, only behind Ethereumas seen in the following image.
Polkadot has the number of full-time developers, second only to Ethereum. Source: Trevor Soare.
The number of developers behind the project—assuming that all of them were actually using their time and talent on relevant tasks—indicates that there is a solid community working to improve the ecosystem, create new applications and solve problems.
In the last 12 months, DOT has underperformed slightly by 60% and It is ranked 15th in the ranking of cryptocurrencies with the highest market capitalization. At the time of publication of this note, its price is $8.43.
DOT Quote from 2021 to Present. Source: TradingView.
In this context, for the analyst everything is in place for DOT to exceed its historical maximum (ATH) of $55 in 2025. Even, lists 4 factors that could act as a catalyst for the asset’s price.
Inflation and staking review
The first reason is the inflation reduction policy that the team behind the project is carrying out.
Along these lines, Soare indicates that in September the DOT inflation rate was 10%, a high percentage that could reduce the purchasing power of investors and could raise doubts about its stability.
This also made the Polkadot network token less attractive compared to others such as, for example, solana (SOL), whose inflation rate was 5%.
Unlike digital currencies like bitcoin (BTC), DOT does not have an emission limitwhich makes it an inflationary asset.
In the case of DOT, holders have the possibility of making stakYong to offset those losses for at least 21 days, which deterred many of them. The reason is simple: they did not have the possibility of being able to sell their assets, in case of unfavorable market movements.
Given this situation, Soare highlights in his analysis that Polkadot has taken important measures to reduce its inflation rate to 8%. The objective is to continue lowering it progressively in the coming years.
The other measure is to reduce the asset blocking time from 21 to 2 days, the analyst defines it as a “de-staking” process. This will allow investors to quickly get their tokens back if they wish to sell them. This increases flexibility and attracts more users to participate in staking.
“While it is still quite high for an inflation rate, it is a step in the right direction,” completes the trader.
Collaboration with Cardano
Polkadot recently announced a collaboration with the Cardano network to create a bridge that connects both ecosystems. In this regard, Soare says:
“This will be the largest project we have partnered with Polkadot on and is a massive vote of confidence for DOT technology. As its sole purpose is connecting communities, this announcement of cooperation cannot be overstated.”
Trevor Soare, digital asset market analyst and trader.
Likewise, it highlights that This is a strong vote of confidence in the technology that Polkadot provides. and opens the door to future partnerships with other networks such as Nearby Protocol.
The author of the report mentions that ecosystem because he uses Subsrate, a platform that allows you to build personalized networks in an efficient, flexible and secure way.
That platform was created by Parity Technologies, whose developer is Gavin Wood, the co-founder of Polkadot.
Gavin Wood, one of the “founding fathers” of Ethereum. Source: Polkadot.com.
The truth is that these strategic partnerships and interoperability reinforce the network’s position in the ecosystem and can attract new investors who are looking for solid projects with long-term potential.
Polkadot 2.0 and JAM
The developer team continues to work to evolve the network with significant improvements, as set out in their roadmap. The big challenge for next year is to launch Polkadot 2.0, which includes advances such as “elastic scalability”.
As Soare explains, this development “will allow projects operating on Polkadot to rent the exact amount of processing they need at any time, allowing them to grow without problems.”
This feature will allow Polkadot handle higher transaction volumes without risking your security or the performance of your network.
It also highlights the update called JAM (Join-Accumulate Machine) that was announced by the company itself. Gavin Wood in mid-April 2024. He said:
“It’s basically a big shared computer that always works exactly how you expect it to… You can load your programs to run and your programs can be sort of services that solve particular problems and because it’s a shared computer, those services can cooperate and coordinate with each other.”
Gavin Wood, co-founder of Polkadot.
In this way, JAM is designed to improve flexibility, efficiency and scalability within the ecosystem.
A key aspect of this update is the ability to handle rollups, a technique that allows large amounts of transactions to be processed outside the main chain, without affecting the security and decentralization of the network.
“While JAM is not expected to be ready until late 2025, I believe the future outlook will attract projects to work with DOT in the near term,” Soare adds.
Ads on Mythos
One of Polkadot’s innovations are parachains, networks that work simultaneously. One of them is Mythos, a platform focused on the development and support of gaming ecosystems based on cryptocurrency network technology.
Recently, it advertisement that a FIFA game is coming to Mythic Games, which uses Mythos as its infrastructure.
Traffic from a game as popular as FIFA will flow directly through Polkadot’s architecture. “As a reference to how big it could scale, the latest FIFA mobile game has more than 500 million downloads,” Soare highlights.
A FIFA mobile game is coming to Mythic Games with a full web3 economy. Source: Capture FIFA Rivals.
Finally, he highlights that Mythos “has had incredible performance” in the NFT space. As seen in the following image, it is almost next to Solana and Polygon.
Blockchain ranking by NFT sales volume. Source: Trevor Soare.
By way of closing, the author of the analysis completes: “I think DOT has a good chance of returning to its all-time high of $55 in 2025 and substantially surpassing Solana in that period.”
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