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Polkadot is recording small gains by the end of 2023, in line with the gradually recovering crypto market. The Polkadot price is trading at slightly less than $7 as of December 2023, with yearly gains of 30%, monthly gains of 33%, and weekly gains of 22%.
The market performance of Polkadot is not that significant this year. The leisure development of the project is also questionable. However, it is definitely worth investing in Polkadot and buying a few DOT coins at the current low prices to benefit in the long run. We will discuss more on Polkadot investment in the present article.
A prolific software programmer, Gain Wood launched the Polkadot network to enable users to build their own blockchains. The unique characteristic of the Polkadot blockchain is its ability to connect different blockchain called “parachains”.
Gavin Wood noticed the importance of interoperability in the blockchain industry. He has created Polkadot to address this issue and to create a global network of blockchains. By improving upon the limitation of Ethereum, which is interoperability, Polkadot added to the list of “Ethereum Killers”.
Polkadot works based on the nominated Proof-of-Stake (NPoS) consensus mechanism. And, it consists of one relay chain and multiple parachains with their own use cases. In addition to enabling interoperability between blockchains, Polkadot aims to be the fastest and scalable blockchain network.
The native token DOT was launched in mid-2020 with a starting price of $2.79. After trading at around the same price through 2020, DOT price increases significantly by more than 200% in 2021. The bullish trend continues while the overall crypto bull market favored Polkadot in line with the popularity of the project.
Polkadot experienced a steep price surge in April 2021 and reached a peak of $45. This is a substantial all-time high price of Polkadot since its launch. However, the token witnessed a price correction combined with the failure of several Polkadot nodes in May 2021. The DOT price plunged to $12 at this period of time.
In the following months, Polkadot announced the launch of a cross-consensus messaging format. Its price started to rise again. When Bitcoin and Ethereum reached their all-time high value in November 2021, Polkadot’s price also experienced a price spike.
DOT recorded its new all-time high price of $55 in November 2021, which is a significant price surge of more than 400%. The ongoing crypto bull market is not the only reason behind this price rally, The project passed a new reform that allows users to register parachains and crowd loans.
Polkadot’s price underperformed in the following months. And, when the crypto market crashed with the FTX collapse and for other macroeconomic reasons, DOT plunged to single digit values in 2022. Even though it witnessed slight price spikes in March and August its value was continuously on the downtrend throughout 2022.
Polkadot has also been underperforming throughout 2023. When its price witnessed an increase in February and April, DOT reached as high as around $8. However, it failed to reach a double digit value and its value decreased in the following months.
Later, DOT’s price plunged to $3.7, which is a substantial decrease when compared to its all-time high value. However, Polkadot’s price again started a price rally in October but hasn’t yet crossed the $10 mark as of December 2023.
Even though it became popular as an innovative project, Polkadot has been quiet this year. New development and network improvement announcements have been absent for a long time now in 2023. This is resulting in people wondering whether it is worth investing in Polkadot before 2023 ends.
Web3 Foundation and the Parity Technologies are the two organizations that are behind the development of the Polkadot are also silent this year. Apart from a few announcements related to Web3 Foundation’s Grant’s program, its social media is seldom active.
1/ We're proud to launch Decentralized Futures. A game-changer for the #Polkadot ecosystem. This transformative initiative allocates 20M USD and 5M DOT to fuel innovative projects. Our goal? To grow a thriving, self-sustaining Polkadot network. pic.twitter.com/PqvKk4Albc
— Web3 Foundation (@Web3foundation) November 16, 2023
Web3 Foundation posted X in November announcing the launch of Decentralized Futures. And, it allocated 20M USD and 5M DOT to support the development of innovative projects on the Polkadot. The Foundation seems to be focusing more on accelerating the growth of the Web3 projects on the Polkadot network.
On another note, Parity Technologies laid off around 30% of its workforce in October, 2023. It is still unclear whether the layoff helps the development of Polkadot or demonstrates the inability of the organization in maintaining its employees.
There are currently 581 decentralized projects that are up and running on the Polkadot network, as per PolkaProject. Additionally, the number of parachains on the Polkadot system is increasing with one parachain auction in a week. The total 100 parachain slots are estimated to be complete in 2024.
Furthermore, the version 1.0 of Polkadot’s foundational technology was released in July, 2023. This implies a development in the fundamental infrastructure of the project. Thus, Polkadot is not quiet and didn’t halt the project development even though it seems like it.
The Polkadot ecosystem is silently building its empire without making a huge fuss about it on the news. Polkadot is worth investing in at the current low prices so that investors can benefit in the long run. DOT holders can benefit from their investment, when the project becomes successful in the near future.
Is Polkadot still worth buying?
Yes, Polkadot is worth buying at the present low prices as of December. The project is coming up with new developments which can help investors make profits once they become successful in gaining adoption.
Can Polkadot make me a millionaire?
Polkadot can make you a millionaire if you buy thousands of DOT coins at a low price and sell them once its price increases thousandfold. However, do not invest more than you can afford because cryptocurrencies are unpredictable.
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