Expert predicts further upside in Polkadot price
In 2024, Polkadot’s price has lagged behind other leading layer 1 tokens due to concerns surrounding its ecosystem. DOT has fallen by more than 20% this year, contrasting with Ethereum, Tron, Toncoin, and BNB, which have all seen double-digit gains.
Polkadot’s underperformance is attributed to perceptions of having a weaker ecosystem compared to peers like Ethereum and Solana. Ethereum boasts a robust ecosystem with major players such as Lido, Maker, Compound, RocketPool, Uniswap, and Aave.
Similarly, Solana hosts popular meme coins like dogwifhat (WIF), Popcat, and Book of Meme (BOME), along with rapidly growing DEX exchanges like Raydium, Orca, and Jupiter.
Third-party data indicates that Polkadot’s ecosystem has not been as vibrant, contributing to its underperformance and the perception among some investors that it is a “ghost chain.” According to DeFi Llama, Acala Network’s total value locked (TVL) has decreased to around $60 million, with stablecoins on its platform totaling just $61,000.
Other parts of the Polkadot ecosystem, such as Centrifuge, Interlay, and HydraDX, have seen limited interest from developers and investors.
Despite these challenges, some analysts remain optimistic about Polkadot’s price. One prominent crypto expert highlighted Polkadot as his favored layer 1 crypto currently. Rekt Finance mentioned in a recent post that Polkadot stands out due to its advancements in artificial intelligence (AI) through platforms like Phala Network and OriginTrail.
Phala Network on Polkadot offers AI coprocessor solutions, involving over 34,000 online workers and 150,880 vCPUs, enabling developers to build AI agents closely integrated with on-chain smart contracts.
OriginTrail provides a verifiable internet for AI with its Decentralized Knowledge Graph (DKG), leveraging synergies among crypto, internet, and AI technologies to tackle challenges such as misinformation, data ownership, and intellectual property.
Polkadot has also ventured into Real-World Asset (RWA) tokenization, expected to become a multibillion-dollar industry. RWA platforms in its ecosystem include Centrifuge, Energy Web, and Phyken Network.
While bullish on Polkadot, its recovery prospects are likely tied to Bitcoin’s performance and the continued growth of its ecosystem.
