• Polkadot has been steadily increasing in value since October 2017, reaching an all-time high of $55 in November 2021.
• The crypto crash experienced in the second quarter of 2022 saw the price drop to a low of around $6.
• Recent developments have seen Polkadot receive major investment from Deutsche Telekom and Ethereum move to proof-of-stake consensus, setting it up as a competitor for Polkadot.
Polkadot Price History
Polkadot (DOT) was trading at $6.30 in August 2020 and kept fluctuating between $4 and $5 throughout the rest of 2020. The start of 2021 saw a surge in the coin’s price, with it reaching its ATH (all-time high) of $55 in November. Unfortunately, this was followed by a crypto crash during the second quarter of 2022 which saw the coin dip to just above $6 again.
Recent Developments
The v9270 version update has seen some positive movement in DOT’s price. Additionally, Bifrost announced liquid staking via a Polkadot blockchain on Twitter on 21 November 2021. Furthermore, transactions per second (TPS) capacity is expected to increase significantly due to upgrades being made to the network.
Deutsche Telekom Involvement
In December 2021 Deutsche Telekom purchased a large amount of DOT tokens while T-Systems Multimedia Solutions – their subsidiary – also bought DOT tokens to help groups staking on the Polkadot network. These investments are further boosting confidence in Polkadot as an asset worth investing into.
Competition with Ethereum
Ethereum recently moved away from its proof-of-work consensus mechanism and towards proof-of-stake consensus, making it a serious competitor for Polkadot as an alternative PoS blockchain platform solution provider; this has been reflected by DOT’s dipping prices over recent weeks following this news announcement. However, Robert Habermeier – cofounder of Polkadot – views Ethereum’s transition positively and sees them as collaborators rather than competitors given that both projects are “ultimately complementary” according to him.
Conclusion
Overall, although there may be competition between these two projects, this does not seem likely given how supportive their creators are towards each other’s endeavours; instead they appear more eager for collaboration moving forward into 2023/24 which could provide positive results for both parties involved as well as investors when it comes to future gains achieved through their respective projects .