Why Did DOT Coin Experience a Significant Drop? (Is There Potential for DOT Coin to Increase in Value?)

08/10/2023 15:56 • Tech Trends • 79 views

Why did DOT coin experience a significant drop last night?

The reason is that DOT’s value is still relatively small compared to Bitcoin. It has not reached a market value of over $100 since last year. However, starting from the second half of 2017, the price of Ethereum almost doubled and continued to rise. By the end of 2017 to early 2018, its price was close to $3000, and now it has risen to around 7000+ RMB. This is why DOT has gained popularity. However, many people did not believe this claim at the time because the cryptocurrency market was still in its early stages, and many investors did not understand it. If we look at the recent data today, we can see that DOT has indeed experienced a significant increase, but its trading volume is relatively low. Therefore, I believe that this number should not be considered high, and could be overlooked. Furthermore, it seems that there is still a high level of attention towards DOT. For example, in May of this year, ETH reached a peak of over $15 million.

So, are these data a good reference for analysis? In my opinion, it is not. Several factors need to be considered:

1. Due to the limited usability of blockchain technology itself, most people are not as interested in exploring decentralized applications as they are in DeFi.

2. Currently, various DeFi protocols on the market are built on the underlying blockchain, so most people may not have confidence in decentralized projects and the overall ecosystem’s development.

3. With the continuous advancement of blockchain technology, more and more developers are realizing the enormous potential of decentralization.

4. Although there are not many mainstream applications on public chains such as Bitcoin and Ethereum, there is still significant room for innovation on these chains. This will attract more traditional financial professionals to enter the blockchain world and encourage more investment institutions to participate. Therefore, we can see a significant deviation in the liquidity flow of the DeFi field, which leads to risks in certain DeFi projects, especially the failure of some DeFi projects.

Is there potential for DOT coin to increase in value?

According to CCN reports, DOT (token DOT) on the Ethereum blockchain network is currently priced at $0.00000247, with a market value of about 200 million RMB. According to Coinmarketcap, DOT, which was valued close to $300 million, has not experienced any increase for almost 30 days. But if we look at it in the long term, how much can it appreciate?

I believe DOT’s price will continue to steadily increase for a period of time, and as time goes on, more new projects will emerge. Therefore, in the coming time, we can focus on its development direction and future trends, and look forward to exploring more possibilities with other cryptocurrencies.

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Why Did DOT Coin Experience a Significant Drop? (Is There Potential for DOT Coin to Increase in Value?)

Is there potential for DOT coin to increase in value?

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