Polkadot has quickly become one of the well-known cryptocurrencies, especially since 2020. Moreover, it is also a promising blockchain that can take over Ether’s dominance in 2022. Let’s know more about it and why one should invest in (DOT) now!
Cryptocurrency is booming, a fact we are breathing daily. If you wish to invest in cryptocurrency, there are different investment options this year. While Bitcoin, Ethereum, Dogecoin are the most popular ones, other cryptocurrencies like (DOT) are secretly growing. Why should one invest in Polkadot in 2022?
What is Polkadot?
DOT crypto is a next-gen, cutting-edge blockchain protocol that brings numerous specific blockchains to a unified network. Just like Ether, it is a blockchain-powered network but more scalable. The central chain ensures the security of the entire network. On the other hand, the sidechains increase the network’s capacity.
Web3 Foundation runs it on an open-source project. Polkadot cryptocurrency aims to eliminate the slow communication between public and private blockchains.
The difference between Polkadot and Bitcoin is that (DOT) is a Proof of State (PoS) network, and Bitcoin is a Proof of Work (PoW) network. This implies that if you wish to earn DOT coins on the blockchain, you need to hold a specific amount of DOT and stake it.
Essentially, a user will be rewarded for staking DOT in return for risking their holdings network validation.
Why Invest in Polkadot?
In 2020, Polka crypto was one of the most profitable and most trusted cryptocurrencies. If we go back to 2017, the Polkadot Foundation arranged an ICO wherein it raised around US$140 million. However, it went into losses and hence had to undergo two sales rounds in 2019 and 2020. In 2017, the price of a DOT was US$30, and the DOT holdings were recovered in August 2020. This means users who purchased a US$30 coin, US$100 new coins were offered for US$6 each.
The DOT journey started at US$6, but then it encountered a sudden fall to US$2.81. Because of the new predomination, it rendered multiple tokens that boosted its market capitalization from 0 to US$5 billion in just one day. Hence, Polkadot has acquired a top cryptocurrency position in a concise time frame.
Further, recently, Bitcoin has processed 3 transactions/second, and Ethereum has processed 15 transactions/second. This indicates the scalability issue both these cryptocurrencies face. Yet, (DOT) is a winner in scalability.
Polkadot’s parachains enable faster processing of transactions in parallel. This then boosts throughput. It is said that the first parachains will launch later this year, which can process 1 million transactions/second.
Investors are moving away from Bitcoin and Ethereum and investing in Polkadot with excellent prospects.
Should we Invest Now?
Yes, definitely. 2022 is the right time to invest in Polkadot. In May 2021, (DOT) was hit hard due to market volatility and came to US$17.71 from an all high of US$48.68. In June, it fluctuated and grew steadily. On June 12th, the price of Polkadot was US$20.17. However, since then, it has been growing. At the time of writing this, the price of Polkadot is US$25.26. In 24 hours, the price has changed by 16.16%, and the market cap has increased by 16.19%. The current market cap of Polkadot is US$$24,057,083,041. It is the right time to invest in (DOT) as it is steadily growing and is further expected to grow. As per DigitalCoinPrice, (DOT) rates are projected to grow toward the start of 2022. The prices of Polkadot in January 2022 could swing from US$64.24 to US$70.54. In 2023 the cost of 1 DOT is anticipated to reach US$81.78. For the year 2024, it is predicted to reach US$90.32 and US$107.4 in 2025.