The project Polkadot (DOT) has the highest level of funding among the blockchain platforms. Moreover, amidst the market slowdown, DOT showed less volatility than others. Perhaps investors should pay more attention to this asset.
The Polkadot platform implements the concept of Web 3.0, which was announced back in 2007. Web 3.0 is a free Internet with useful optimized content, so-called “a semantic web”. One of the important properties of Web 3.0 is the lack of the possibility of “SEO cheating” and other dirty methods of search engine optimization.
According to the creators of Polkadot, Web 3.0 can only be implemented using blockchain technology. Polkadot securely connects various blockchains, both private and public, providing an exchange of information and transactions. The idea for the project was announced by the Ethereum co-founder British Gavin Wood at the end of 2016.
In mid-2017 a Web3 foundation was established that manages the development of Polkadot. The DOT ICO was held in October 2017 with great success, $144.63 million was raised. The tokens were issued and distributed in the third quarter of 2019. ROI (the return on investment) since the ICO is more than 80x. After listing on exchanges, DOT did not show great dynamics for a long time. From August to the end of 2020, the DOT price was in the $4- $6 range.
Since the beginning of 2021, DOT’s fast rising occurred, with an all-time high of $49.69 reached on May 15. During the “bloody week” from May 15 to May 22, the DOT collapsed along with the market to the level of $16 on May 23. The cryptocurrency is now recovering and it is traded above $23. Experts believe that there is now a good opportunity to buy from the lows, as the DOT has an upside potential of about 500%.
Polkadot’s haters criticize the project for lack of decentralization. They said that multi-chain is just a Layer 2 scaling solution over centralized cloud services. However, the most popular altcoin ETH is developing along this path.
Ethereum 2.0 is in essence sidechains on top of the main blockchain, and they increase network performance by 1000 times. Some analysts admit the possibility that Polkadot will become part of Ethereum 2.0. Or vice versa. In both cases, the coin is highly likely to skyrocket.
The capitalization of Polkadot is now half the capitalization of the scandalous Dogecoin (DOGE). However, experts are sure that Elon Musk’s favorite coin will collapse sooner or later, and the functional Polkadot (DOT) will definitely surge. Perhaps now is the right time to invest in DOT.