With the downward trend that has come to the cryptocurrency markets in last few months of 2021, many folks want to find projects that have long-term potential. These kinds of extended plays have tended to pan out for investors historically. One such project could be Polkadot.
What is Polkadot?
Polkadot is a network protocol meant to increase communication between blockchains. By allowing the transfer of arbitrary data between blockchains, Polkadot enables data to cross between relay chains and parachains. In time, the goal of Polkadot is to enable transactions to process on parachains, with final transaction data settling on the base-layer relay chain.
To facilitate transactions, Polkadot uses a Proof of Stake (PoS) model that has four different roles to ensure transactions stay on the up-and-up. Users of the ecosystem can choose how deeply they want to be involved in the validation process, depending on how much technical knowledge they have.
Polkadot price live
At the top of this page, you can find the Polkadot price live. In 2021 lower Polkadot price was €5,88 and the highest price was €47,69. This is an increase in price of over 700%.
It’s also worth noting that €47,69 is the all-time high Polkadot price. The Polkadot price reached this all-time high in November 2021.
Looking at the Polkadot price chart, it’s easy to see that Polkadot remains a volatile asset. It’s rare for the project to see sideways price action month to month instead of swinging high and low with the general market. For example, most of the downward momentum in November 2021 lines up with the massive liquidation event at the beginning of that month.
Right now, Polkadot is expected to continue growing in price over the long term. Fundamentally, the protocol sees a lot of work put into it by the various teams that work on fleshing out its reach. The Polkadot community is also active in both the development and the governance of the protocol, ensuring the project continues to put forth solid proposals and upgrades.
From a technical standpoint, Polkadot is in a strange place. The token has had upward price rallies. In general, these rallies last for a few days before Polkadot sinks back to a new low.
Right now, the main thing holding Polkadot back is the general sentiment of the market. The liquidations back in November 2021 scared many people out of the market with the sudden price drop. Once the fear shakes out of the market, Polkadot will have a chance to recover and soar again in price. As always, holding coins and tokens long-term in cryptocurrency tends to win out.
Polkadot is a project dedicated to increasing the interoperability of different blockchains. While not unique in this cause, Polkadot is making strides that other projects aren’t at yet.
In time, this project is likely to increase in value. When combined with its staking protocols to earn more tokens, Polkadot offers a promising financial future for investors.