Cryptocurrency investors are turning to altcoins to multiply their capital by looking at past parabolic rises. It is unknown whether the past predicts the future, but cryptocurrencies have done it many times. So, if Polkadot (DOT) makes a comeback and runs to new highs according to historical data, can investors become millionaires?
The team is working to improve interoperability between different blockchains. Polkadot’s efforts to create a multi-chain future may be of interest. In fact, many prominent figures, including Vitalik Buterin, refer to a multi-chain internet environment when defining the future of Web3.
DOT Coin is currently trading at about 90% below its peak on November 4, 2021. The crypto market crash has also significantly affected it. In February, the propaganda was that it had escaped the wrath of the SEC, and it reached its peak in 2023. However, it was later revealed that the SEC did not exclude DOT Coin from the list of securities.
The project, created by Gavin Wood, has a highly experienced team. Wood is both one of the founders of Ethereum and the person who wrote the Solidity programming language. In 2016, the crypto pioneer, who left Ethereum, dedicated himself to the communication of blockchains.
At the time of writing, DOT Coin, with a market value of around $4.8 billion, is the 14th largest cryptocurrency. To become a millionaire when the price reaches its all-time high of $54.98, you need to buy 18,188 DOT. You can become a millionaire at the ATH level with a cost of around $69,114 at the current price.
However, there are a few problems. Polkadot is not alone in its field. There are many projects like Cosmos that focus on the communication of blockchains. Moreover, there is no guarantee that Polkadot can survive until the next bear market. Just like there is no guarantee of another bull season in the cryptocurrency market.
Investors should be aware of how fragile altcoins can be. Last year, the Terra ecosystem, which had a value 10 times the current market value of DOT Coin, was wiped out within days. The second-largest cryptocurrency exchange, FTX, was demolished before the upcoming bull season (if it comes).