Polkadot has strong growth potential in 2022

Polkadot (DOT) has the potential to become one of the top cryptocurrencies of the year, says a well-regarded analyst.

In a new YouTube update, Coin Bureau has given Guy the nickname Guy to say DOT will have a strong uptrend in 2022.

“DOT could become one of the top cryptocurrencies of 2022.”

According to Guy, traders expected Polkadot to command a much higher price in 2021, but DOT underperformed the predicted level due to a number of factors.

“Despite all the developments, updates and announcements from Polkadot – DOT, it hasn’t changed much in terms of price performance and has even dropped almost 50% since I last mentioned the project in October 2021. There are mutliple reasons for this.

The crypto market has been in a downward spiral since November and investors are feeling very uncertain due to various macro factors. When this happens, money tends to flow from altcoins to BTC, and that’s exactly what we saw…

Along with BTC and ETH, DOT is the most popular cryptocurrency among institutional crypto funds – and by a wide margin compared to other cryptocurrencies. Coincidentally, institutional cryptocurrency investment vehicles have seen record outflows since November, particularly altcoin vehicles like DOT.

As inflows into these institutional investment vehicles started to surge over the past few weeks, most of that money has gone to BTC and ETH, with altcoins like DOT lagging behind.

Guy turns his attention to the circulating supply of DOT, which he believes is limited enough to be positively impacted by a small amount of investor demand.

“The good news is that the supply of circulating DOTs hasn’t increased much… There are only about 50 million additional DOTs circulating since October. Some of those DOTs likely come from the Web3 Foundation, which recently funded over 100 projects in the Polkadot case has year.The remainder is believed to have come from a combination of staking rewards and from early investors since their DOT allocation has been fully unlocked as of January 2021.

This increase in supply is very small compared to the large amount of DOT locked in Polkadot’s parachain position auctions. If my calculations are correct, almost 150 million DOTs have been locked so far. This figure represents approximately 15% of the circulating DOT supply. Add that to the 52% of DOT currently deployed with a 28-day lockup period, and you’re left with a very small tradable supply of DOT — and that means DOT can pump very hard with so little demand.

The only question is where exactly this need will come from. Aside from parachain auctions, there really aren’t any other demand drivers for DOT right now.”

While DOT currently lacks price drivers, Guy remains bullish on investor demand for altcoins in 2022.

“However, with any luck, Polkadot’s upcoming interoperability protocol should generate enough demand momentum for DOT across the ecosystem for some positive price action.

If that is the case, we could see DOT retest its previous all-time high of $52 and secure a new ATH in the $60-$70 range. ”

At the time of writing, DOT is trading at $18.50 and is down more than 3% in the last 24 hours.

Source: TradingView

Speckle to lead before Ethereum about this indicator

According to a leading analytics firm, smart contract platforms Solana, Cardano, and Polkadot show strength on a specific development metric.

Mood said 3 Ethereum Competitors Lead Large-Cap Crypto Projects in GitHub Submissions.

“Development activity continues to play an important role in the development of major cryptocurrencies and their potential for improvement.”

Solana is the top project, Cardano is second, and Polkadot is third. Ethereum and the decentralized oracle network Chainlink rank fourth and fifth, respectively.

The source: SantimentFeed

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page