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Polkadot news: the price trend of the DOT crypto has been rather flat in recent months.
The news about Polkadot and the native DOT crypto
The current price is close to that of mid-July, although slightly lower.
After peaking on 4 November 2021 at nearly $55, it began a long four-stage descent that ended precisely around mid-July.
The first phase ended as early as December, with a return around the $25 level. Thereafter, after a brief recovery, the second phase of decline immediately began, ending on 25 February at $16.
It is worth noting that $16 was also the price that DOT had reached in January 2021, that is, during the very first phase of the great bullrun of 2021.
Therefore it was possible to imagine that the decline would stop there. Instead, after a recovery of a few weeks, it began to fall again in early April.
This third phase ended at $8 in the days of the implosion of the Terra ecosystem, that is, a share equal to half of the previous one.
At that point, one might have expected further sharp declines, and instead the fourth phase stopped at $6 in mid-July.
After an admittedly rather moderate recovery, it returned to $6 after mid-September and there it has remained until now.
The current price is 88% lower than the November high of last year, and is in line with the August 2020 high.
In particular, this latest comparison suggests that the 2021 speculative bubble on DOT was particularly large. Even though when it began to inflate in December 2020 the price was lower ($5).
In other words, virtually all the gains made during the 2021 bullrun on DOT were wiped out in 2022.
Puzzling news: Gavin Wood quits Polkadot.
That the situation is far from flourishing would also be indicated by the recent resignation of Gavin Wood.
Gavin Wood is quite an important figure, because he was among the co-founders of Ethereum. In 2020 he founded Polkadot with the goal of going beyond Ethereum.
He has always been the main focus of Polkadot’s development, but he may continue to be the same.
In fact, he has only stepped down as CEO of Parity, the company that is developing Polkadot.
Wood stated that he is a developer, not an administrator, and that he never wanted to be CEO. Indeed, he also revealed that he had only agreed to be CEO for a limited period.
Moreover, he still remains the majority shareholder of the company, but from now on he will “only” be Chief Architect.
So while in some ways his stepping down as CEO could be seen as a bad sign, in reality the fact that he can devote himself 100% to being Chief Architect should be a good sign.
Indeed, while DOT lost 5% on the day he declared he was stepping down as CEO, it gained 13% in the following days.
DOT’s price predictions
For these reasons, some analysts argue that in reality DOT’s price may continue to lateralize around the $6 mark.
It has been more than three and a half months now that it has more or less been lateralizing around this mark, and it may well continue to do so for a while.
It has been fluctuating very little for almost a month and a half, with volatility so low that it seems like an anomaly. This anomaly may dissolve sooner or later, and the price of DOT may become volatile again.
However, the fact is that analysts say that this eventual volatility could also trigger new declines, because right now there are not many particularly positive indicators for Polkadot.
There are also other analysts who argue that the daily chart shows bullish signs, so in the short term volatility could also push up the price of DOT.
In addition, the Polkadot project remains one of those with the greatest theoretical potential in crypto. So current prices could also prove particularly attractive should it actually succeed over the years in doing what it promises.
Therefore in the short term, the hypothesis circulating most is that of a continuation of the lateralization phase.
In the short-to-medium term, it might even rise a bit, while in the medium-to-long term for now it does not seem to give much indication of a possible new bullrun.
Instead, in the very long term it has potential, which, however, could also only present itself in the next crypto market cycle, namely the one that will begin in 2024 with Bitcoin’s fourth halving.
Competition
As similar cases from the past show, the longer one goes, the more competition increases.
Cryptocurrencies that were able to establish themselves when there was little competition, such as Bitcoin and Ethereum, now seem to have become so well established that they no longer face real competition.
Instead, cryptocurrencies that have not yet consolidated, such as DOT, will continue to suffer competition, especially from any new projects that are very quick to spread.
Polkadot is a project that has only been around for a few years, but if a direct and faster-growing competitor emerges in the next few years, it could suffer quite a bit.
Currently, to be fair, there doesn’t seem to be a real competing project to Polkadot, partly because there are very few that have one of Ethereum’s co-founders behind them.
But while competition for Polkadot does not seem to be a problem at this time, it could become one in the future if it fails to establish itself before some similar project takes off.
It is extremely difficult to implement and get a project like Polkadot off the ground, which partly explains why no real competitors have emerged to date.
But the crypto world evolves at the speed of light, so it’s not possible to say that Polkadot will continue to have no major competitors even in the future. And, for example, Ethereum itself could be suitable for some somewhat similar projects.