Can Polkadot make me rich? If I invest in Polkadot today, how rich can the altcoin make me in the next 5 or 10 years?
Well, based on its past price performance, overall uptrending return on investment, its highly revolutionary technology, and the fact that trade sentiments are bullish about its future, then YES, Polkadot can make you super-rich.
Today, Polkadot ranks highly among the fastest-growing blockchains, as reflected in its bulging developer community and fast-paced price growth. Over the past 12 months, for instance, its value has jumped by more than 600%, even in the face of a dip. At the peak of DOT prices in November, the altcoin had earned its earliest investors an overall ROI of more than 1,700% - effectively making even the little DOT coin hodlers incredibly rich.
But can it mirror past performance to in future? If it does, what will it be worth in the next 5 or 10 years, and can I make money if I invest in DOT token today?
Can I Make Money Investing In Poldadot (DOT)?
Crypto industry experts and analysts are convinced that Polkadot prices will continue rising in the foreseeable future. They are confident that it will increase again soon and possibly set a new all-time high. And this, effectively, implies that it will make its long-term investors good money.
But its price action also shows that DOT is a valuable asset and a money-maker for short-term traders too. In the last 30 days, for instance, DOT prices have been quite volatile and ranged between $22 and $32. Short-term traders, especially the day traders, therefore stand to make good money while trading the coin’s volatile price movements.
But as you prepare to make a DOT investment, we ask that you take time to first orient yourself with different research tools and risk management resources. These come in handy in protecting your capital and informing you of the most likely price action a coin is expected to take.
For instance, how can you tell if DOT prices will rise again? Better yet, how do you tell if Polkadot will ever reach $100?
Will Polkadot (DOT) Eventually Reach $100?
YES, the crypto market is very confident that Polkadot will eventually reach $100. As the DOT prices rallied earlier in the year, different analysts, price prediction websites, and DOT investors were convinced that it was bound to reach $100 and would hit this target before the end of the year. Even now that the crypto market has dipped, most are still convinced that Polkadot has what it takes to rebound and reach $100 in the next 5 years.
But is DOT’s run towards $100 feasible?
Well, it has a total market supply of 1 Billion DOT coins. Rising to $100, therefore, will only give it a total market capitalization of $100 Billion - less than 7% of the current crypto industry valuation and less than half of Ethereum’s current market cap.
In 2021, DOT pushed its prices up by more than 5X to hit $55. Analysts then argue that to get to $100, Polkadot will only need to first rise to the November 2021 price levels and double this price to get to the $100.
The warm welcome which Polkadot (also known as the Ethereum Killer) and its revolutionary technology have been met with by the crypto community also speaks volumes about its likelihood to reach the target price. And this is evidenced by the fact that its developer pool has more than doubled in the last twelve months (beating even Ethereum), and the number of interest in its blockchain technology is on a rapid uptrend.
These, plus the fact that it is one of the most sought-after investment products by speculative investors, are bound to create a huge demand for DOT coins which pushes its prices well above $100 soon.
But what will Polkadot be worth in 5 years?
What Will Polkadot (DOT) Be Worth In 5 Years?
There is an overwhelming conviction within the crypto industry that cryptocurrencies will escape the dip soon and embark on recovery. If this happens before the end of the year, analysts are predicting a significant break that pushes Polkadot prices towards $100 in the next 5 years.
The Wallet Investor, for instance, indicates that DOT will enter into recovery over the next few months and break above its current all-time high to end the year, trading at $60.63. Over the next five years, their technical analysis indicates that Polkadot DOT prices may grow by around 475.86% and reach $156 by mid-January 2027.
CoinPriceForcast is also bullish on Polkadot’s future prices but not as optimistic about a possible parabolic growth. Over the next 5 years, their technical analysis indicates that Polkadot DOT will rise exponentially and trade around $400.
Read More: Polkadot Price Predictions
What Will Polkadot (DOT) Be Worth In 10 years?
Well, as we have indicated above and as evidenced by its unprecedented rise earlier in the year, Polkadot is a highly volatile investment product. All indicators point to its possible recovery and future growth but cannot tell - with utmost accuracy - how much Polkadot may be worth in 10 years.
The much they can do is look at some of the factors expected to influence its prices during this period and give an opinion on the price direction that each may push DOT prices. These include:
Adoption: While the last crypto market rally played a key role in inciting Polkadot DOT into a price rally, it couldn’t have succeeded without proper adoption. And as the number of exchanges, protocols, and blockchains interacting with Polkadot blockchain grows, analysts expect a burp in demand for DOT coins which pushes its prices up.
ETH 2.0 upgrade: If and when Ethereum 2.0 upgrade takes effect, we might see a reduced interest in Polkadot due to faster transaction speeds and lower fees on Ethereum. If it doesn’t come in soon, we can expect most of the technologies on Ethereum to continue linking to Polkadot to increase the performance of their protocols and lower gas fees.
DeFi explosion: As more DeFi protocols launch and investors pour in more funds to the niche, analysts expect most of these platforms to create links to Polkadot in a bid to guarantee a better performance to their users. Aave and Compound DeFi apps have already established links with DOT, and more are expected to follow.
If Polkadot sustains the current adoption, Ethereum continues dilly-dallying with the ETH 2.0 upgrade, and DeFi sustains the unprecedented growth being witnessed today, Polkadot will be highly valuable in the next 10 years.
Is Polkadot (DOT) A Good Long-term Investment?
The crypto community and current DOT investors have fronted numerous reasons online explaining why they believe Polkadot is a viable long-term investment. They have alluded to statistics that categorized DOT among the fastest growing blockchain technologies, pointed out the continued interest by exchanges and Apps that are already building links to Polkadot and its revolutionary technology.
But, perhaps more significantly, they argue that Polkadot has grown by more than 600% in the last 12 months to become the 10th largest cryptocurrency with a market capitalization of over $26 Billion.
But is it a good long-term investment?
We explain this with an example.
Seeing that DOT prices have shot up by more than 600% in the last 12 months, how much would you have made from the altcoin if you had bought $1000 worth of DOT tokens a year ago? Your investment would be worth $6,000 today (or about $18,000 if you sold at DOT’s price peak when it had posted an overall ROI of 1800%).
Looking forward to the next 5 years, what can you expect to earn if you bought $1,000 worth of DOT coins today? Well, assuming that Polkadot prices grow as anticipated by the Wallet Investor - by 475.86% - your $1000 investment today will have grown to around $4,750 by this time in 2027.
This then tells you that Polkadot is a good long-term investment.
Read Also: Should You Buy Polkadot?
Conclusion: Should I Buy Polkadot (DOT)?
The decision to invest in Polkadot today should be informed by your investment goals, familiarity with the crypto markets, and risk tolerance. If you feel confident about your crypto investment skills and understand how to manage the risks that accompany crypto investments, you definitely should consider directing some of your capital towards Polkadot. If you are a beginner looking to get into this space, consider engaging a crypto expert that guides you on how to invest in Polkadot.