The price of Polkadot (DOT) has historically fluctuated between $2.69 (Aug 20, 2020) and $55.00 (Nov 4, 2021). Polkadot is a cryptocurrency and a blockchain with a focus on interoperability.
The price history of Polkadot (DOT)
The price of Polkadot (DOT) has historically fluctuated between $2.69 (Aug 20, 2020) and $55.00 (Nov 4, 2021). This information is based on the data from Coinmarketcap.
Polkadot emerged to the attention of the crypto people in 2020, but the roots of the project go back several years. Polkadot’s ICO was held in 2017 with $145 million raised.
The beginning was not easy, as most of the funds raised at the ICO disappeared in a wallet hack. Despite this early gigantic setback, investors have had faith in Polkadot. During 2019 and 2020, the project raised a total of nearly $100 million in new money through private funding rounds.
Despite the strong faith of the investors, Polkadot’s native token DOT moved sideways from 2019 until the summer of 2020. The price of Polkadot was steadily around $150. The price of the DOT token began to perform positively when Polkadot’s MainNet was launched in the summer of 2020. Polkadot’s price launched like a rocket reaching over $300, from where it plummeted to $3.
However, the sudden drop was due to the Polkadot community’s decision to expand the number of tokens in circulation a hundredfold. Hence, the price of each token was divided by 100.
This is the reason why the Polkadot (DOT) price history goes back only to August 2020. That is where the token circulation change was done and hence, the old prices became incomparable. Below is the Polkadot (DOT) historical price chart.
The summer of 2020 and the release of MainNet brought Polkadot to the attention of the crypto people. Since then, Polkadot has persevered on the top-15 list of major cryptocurrency projects.
In early 2021, the Polkadot price started to rise along with the rest of the crypto market. The price peaked above $47 in mid-May. A major crash followed. This was again due to the general market conditions.
Autumn 2021 has given new power to the DOT token. Throughout August and September, Polkadot’s price has been in an uptrend. Polkadot still ranks among the 15 largest cryptocurrency projects.
Basic information about Polkadot
Polkadot is a cryptocurrency and a blockchain with a focus on interoperability. The white paper was published in 2016. This protocol is based on a Proof of Stake consensus algorithm like most of the platform projects.
Polkadot was founded by Gavin Wood. He is one of the best-known people in the crypto world and also one of the Ethereum founders. Wood has developed the Solidity programming language used by Ethereum, so we are not talking about amateurs here.
The paths of Wood and Ethereum separated in 2016 and Wood began to develop his platform project. In 2017, the Web3 Foundation was established to lead the development of Polkadot. Web3 Foundation was also behind the 2017 Polkadot ICO.
Polkadot belongs to the platform category, but it is not a direct competitor to Ethereum. Polkadot plans to build an ecosystem that allows different blockchains to be interconnected. There are other similar projects on the market too, such as AION, ICON, and Cosmos.
The composition of the Polkadot is quite complex. In short, Polkadot’s architecture consists of the Relay Chain and parachains. The system is divided into small fragments, which makes it possible to process transactions in several different blocks at the same time. In Polkadot, each fragment is practically its blockchain.
Known by the DOT ticker, Polkadot’s native token serves as the gas of the system. It’s not only used for transactions it also acts as a governance token. Thanks to the PoS consensus algorithm, it is also possible to stake DOT tokens.
In addition to staking, a lot of DOT tokens will be locked out of the market because setting up a parachain requires locking a certain amount of DOT. Thus, a large proportion of tokens are constantly locked, resulting in less supply in the market and a higher Polkadot price – at least in theory.
From an investor’s point of view, Polkadot is an interesting option, and the Polkadot price has provided investors with excellent returns in recent years. If you are interested, you should also familiarise yourself with Polkadot’s parallel project Kusama.
Learn more about the project from our Polkadot beginner’s guide.