Coin Bureau on Polkadot: ‘DOT Could Become One of the Top Cryptos of 2022’
The popular crypto analysis and market commentary show Coin Bureau is predicting that Polkadot ($DOT) could surprise investors as one of the best performing assets of 2022.
Here is an overview of Polkadot using information from the Polkadot website:
“Polkadot is a network protocol that allows arbitrary data—not just tokens—to be transferred across blockchains. This means Polkadot is a true multi-chain application environment where things like cross-chain registries and cross-chain computation are possible. Polkadot can transfer this data across public, open, permissionless blockchains as well as private, permissioned blockchains.
“This makes it possible to build applications that get permissioned data from a private blockchain and use it on a public blockchain. For instance, a school’s private, permissioned academic records chain could send a proof to a degree-verification smart contract on a public chain.“
Polkadot “unites a network of heterogeneous blockchains called parachains and parathreads.” These chains “connect to and are secured by the Polkadot Relay Chain” and they can “also connect with external networks via bridges.”
And here is what Binance Academy says about Polkadot’s parachains and Relay Chain:
“An individual blockchain in the Polkadot ecosystem is called a parachain (parallel blockchain), while the main chain is called the Relay Chain. The idea is that parachains and the Relay Chain can easily exchange information at all times. You could think of parachains as being similar to individual shards in the planned implementation of ETH 2.0.
“Any developer, company, or individual can spin up their custom parachain through Substrate, a framework for creating cryptocurrencies and decentralized systems. Once the custom chain is connected to the Polkadot network, it becomes interoperable with all other parachains on the network.“
Speaking in a recent YouTube update, Coin Bureau’s host “Guy” told viewers that Polkadot has substantial potential this year, saying, “DOT could become one of the top cryptos of 2022.”
Guy argued that $DOT had failed to reach the target price point most analysts were predicting for 2021, giving it a bullish rollover into this year. Despite being down 50% in price since last October , Polkadot has managed to launch a number of updates and new developments, which should factor into the project’s value moving forward.
As reported by The Daily Hodl, Guy said,
DOT is the most popular cryptocurrency among institutional crypto funds besides BTC and ETH – and by a wide margin, compared with other altcoins. As it so happens, institution investment vehicles for crypto have seen record outflows since November, especially those for altcoins, like DOT.
Guy explained that the crypto markets were down across the board, leading to a flow of capital from altcoins to Bitcoin. However, Guy said that institutional interest has been picking up in recent weeks, providing a small pump to the market.
Guy noted that $DOT’s circulating supply is restricted, with only 50 million new coins entering the market since October. He called the increase in supply “minimal” compared to the amount of $DOT locked in Polkadot’s parachain slot auctions, in addition to 52% of the circulating supply being staked. Coin Bureau’s host said the supply restriction could lead to a massive pump in $DOT’s price with only a “little bit of demand.”
Guy predicted that Polkadot’s price could more than triple if demand picks up.
If it does, I reckon we could see DOT re-test its previous all-time high of $52 and secure a new one somewhere in the $60 to $70 range.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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