Prediction: Polkadot (DOT) will hit $10 by 2025

The Spheres (POINT -0.47%) the cryptocurrency could double in price next year. I know that’s a strong statement — but it comes with short-term caveats and even greater long-term prospects. So I expect the Web3 cryptocurrency to go from less than $5 to more than $10 in about a year and a half, but it’s still kind of a mix.

Let me break down the good and bad news ahead for Polkadot and its investors.

How Polkadot supports the decentralized web

First, the Polkadot blockchain ecosystem remains a key piece of the Web3 technology revolution. The idea is to reduce web and mobile apps from centrally controlled social networks and give more power to creators and consumers. Many cryptocurrencies will play an important role in this change; the Polkadot network and its DOT token are the glue that holds the separate pieces of Web3 together.

Many top players in the current Web2 system would like to stay in this era, and it is never quick or easy to change the habits and behavior of millions of consumers. However, many powerful forces are working in Web3’s favor, and I believe it is an inevitable next step in the evolution of online services.

The rise of Web3 will take some time, of course. The term was first coined 10 years ago, gaining momentum around the coronavirus lockdown era.

I’m not saying that decentralized financial apps and highly personalized content platforms will magically appear overnight, changing the web as we know it before the end of 2025. Polkadot’s optimistic argument is more subtle than that.

Understanding Polkadot’s Price Movements

I’ll get back to the future of Polkadot and the Web3 upgrade in a minute. It’s time to check out Polkadot’s volatile price chart.

It’s important to note that $10 each is not new territory for Polkadot’s stake and governing token. The token peaked above that benchmark earlier this year, but only after dropping to $3.65 per token just five months earlier:

Polkadot Price Data by YCharts

Over a longer period of time, the DOT token peaked at $54 in the fall of 2021, just before the onset of the global inflation crisis. Polkadot’s average price is around $13 over its four-year history. So a return to $10 next year shouldn’t surprise anyone, but it’s just as likely that the token will follow a short bounce with a lower swing again.

This freely moving price chart is why I am so confident that Polkadot will regain the $10 level soon enough. It might not stay there very long, but a quick win is a quick win.

Why investing in Polkadot could pay off big — but slowly

With all that in mind, I still recommend grabbing some Polkadot tokens while they’re still affordable, and then try your best not to play the market-timing game. Hold on to those volatile chips through thick and thin, perhaps adding more by buying Polkadot on dips or sticking to a strict dollar cost averaging plan.

You see, the Polkadot community has big dreams, deep pockets, and some serious tech upgrades. First, I’m looking forward to the JAM upgrade proposed by Polkadot founder Gavin Wood. This project will replace Polkadot’s central relay chain with a more powerful, flexible and faster machine, or JAM network. Not to get too technical, but the idea of ​​JAM will focus on tight security and efficient message passing, allowing a separate set of computers to do the hard work of executing code in smart contracts.

So it’s a lightweight network-to-network communications solution backed by lots of big iron computing muscle at a distance.

After the JAM update, Polkadot should be ready to build interconnected crypto networks on a global scale. At the same time, its inherent processing power could steal money-making workloads from smart contract giants Ethereum (ETH 0.05%) and Solana (SOL -1.37%).

Now, JAM is still in the planning phase and probably won’t be available until 2025. However, the forward-looking benefit of this increased productivity should increase the price of the DOT token over time. As discussed, Polkadot’s price can make big moves in a hurry, and the prospect of a better tech platform should be more than enough inspiration for a significant rally.

Why now is a great time to invest in Polkadot

Here it is: Polkadot looks poised to double its price pretty soon, at least temporarily. At the same time, the real advantage of the big Web3 change and the value of the related Polkadot asset is many years away.

The basic principles of purchasing Polkadot tokens today are twofold:

So why not pick up a few chips while they’re on sale for less than $5, then watch them build real-world use and serious value for years to come?