Polkadot provides “parachains,” an abbreviation for “parallel chains,” which are a series of linked blockchains. The Polkadot protocol allows its network to communicate with other blockchains, allowing value or data to transfer between blockchains (for example, Ethereum and Bitcoin) without the need for an intermediary.
It’s also fast and scalable, thanks to the deployment of several parallel blockchains (or “parachains”) that offload most of the processing demand from the main blockchain. Since its blockchain network is fast and flexible, it can pivot and address more specialized requirements.
Polkadot’s (DOT) Value Proposition
The Polkadot token (DOT) serves two purposes inside the Polkadot network: as a governance token, it allows holders to vote on the protocol’s future, and it is used for staking, which is how the Polkadot network validates transactions and issues fresh DOT.
The network currently operates at an average speed of 1000 TPS (transactions per second). It allows developers to link blockchains to the Polkadot system and even create completely new blockchains. Usually, investors are drawn in when they notice developers flocking to new technology.
Polkadot is currently trading at $5.21 and has a market capitalization of $5 billion. DOT has lost considerable value in recent times. Its prices have declined by 15.85% in the last 2 months, 25.69% in the last 3 months, and 81.82% year to date (YTD).
According to cryptopredictions.com, DOT will breach the $10 barrier by 2025. Let’s assume that you invest a modest $100 in DOT today.
According to today’s price, which is $5.21, you will have approximately 19.19 DOT coins. And if Polkadot hits $10 in the next few years, your $100 will become $191.93, a 1.9X return on investment.
Let’s say you bought $1000 worth of DOT coins today. With the current rate, you will have approximately 191.94 coins. And you can potentially make $1919 when it reaches the $10 mark.
