Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
On 1 August, Polkadot Insider tweeted that Polkadot [DOT] gained recognition on the social entrance inside the final seven days.
POLKADOT SOCIAL METRICS WEEKLY RECAP
📊Dive into the social buzz round @Polkadot
🌟Over the previous 7D, Polkadot has been making waves throughout social media platforms.
🚀The neighborhood is buzzing with pleasure from discussions, mentions, and engagements
Element👇#Polkadot #DOT pic.twitter.com/ALJslsuhvW
— Polkadot Insider (@PolkadotInsider) August 1, 2023
It’s evident that Polkadot continues to stay probably the most common blockchain ecosystems. At press time, it had a market cap of $5.9 billion, making it the thirteenth largest cryptocurrency.
Beforehand, DOT’s value rose 9% inside a day of Ripple [XRP] securing a partial victory in its authorized battle with the U.S. Securities and Trade Fee (SEC) on 13 July.
The U.S. District Court docket of the Southern District of New York dominated in its judgement that the sale of Ripple’s XRP tokens on crypto exchanges and although programmatic gross sales didn’t represent funding contracts; therefore, it isn’t a safety on this case. However the courtroom additionally dominated that the institutional sale of the XRP tokens violated federal securities legal guidelines.
The crypto business has lapped up the judgement immediately, producing a value rally throughout tokens.
Polkadot’s ecosystem continues to develop as extra parachains developments come onboard. By the top of Q1 2023, over 40 parachains had gained recent public sale slots on Polkadot, based on the Q1 replace. The brand new tasks embody Zeitgeist and Subsocial, amongst others.
These new parachain developments may add upward strain to DOT’s token worth as they drive demand. Notably, a challenge workforce should win a Polkadot parachain slot public sale to be related to the core community. The parachain slot public sale is settled in DOT tokens, and the challenge workforce may search DOT from particular person holders by a crowdfunding course of generally known as “crowd loans” to assist safe the slots.
To grasp the potential impression of those new developments on DOT’s worth, we tapped into ChatGPT to achieve extra nuanced insights and gauge the AI mannequin’s apprehension of Polkadot’s ecosystem.
Asking ChatGPT about Polkadot’s previous, current and future
Beginning off with the fundamentals, we requested ChatGPT to elucidate what Polkadot is and the way its ecosystem works –
Supply: ChatGPT
In abstract, ChatGPT said that,
“General, Polkadot’s ecosystem is designed to foster innovation and collaboration between totally different blockchains, offering a versatile and scalable platform for builders to construct a variety of decentralized functions.”
The “decentralized functions” are also called “parachains.” The Polkadot ecosystem added 21 of those parachains final month, and every challenge workforce should win a parachain slot public sale to achieve entry to the core system for a specified time period. It’s like paying for a lease over a sure agreed length.
Is your portfolio inexperienced? Take a look at the DOT Revenue Calculator
To additional gauge the AI mannequin’s understanding of Polkadot, we requested it how parachain slot public sale works –
Supply: ChatGPT
The “crowd mortgage” construction of sourcing DOT tokens entails “staking” to assist a challenge win an public sale. This, merely put, is intriguing. Due to the present U.S. regulatory strain on crypto-staking, something structured in a fashion that entails “staking” may entice regulatory scrutiny.
For instance, Coinbase lately acquired a Wells Discover from the SEC. One of many objects of the potential lawsuit is reportedly its crypto-staking service.
So, we requested ChatGPT what crowd mortgage is and its authorized standing within the U.S. The reason was apt, however the AI mannequin couldn’t affirmatively state whether or not crowd loans are authorized within the U.S.
Supply: ChatGPT
Right here is ChatGPT’s evaluation of the legality of crowd loans within the U.S –
Supply: ChatGPT
At this level, one factor is crystal clear. parachains developments can drive demand for DOT tokens as a result of challenge groups want them to win a parachain slot public sale. Based mostly on this, how will the 21 newly added parachains impression DOT’s worth?
This was the AI mannequin’s reply –
Supply: ChatGPT
We have to put a determine on the above doable upward strain on DOT’s worth because of the added parachains. So, we pulled historic value information on DOT to assist make future value predictions.
Among the outcomes issued by ChatGPT have been inaccurate, with a large deviation from value information collated from TradingView.
For instance, ChatGPT said that DOT hit a excessive of $52 in December 2021. Quite the opposite, TradingView’s information confirmed it at a excessive of $39 on 1 December, 2021.
Supply: ChatGPT
The AI mannequin is restricted from making value predictions, so we unshackled it by jailbreak strategies to get modest value prediction values for DOT. We needed to ask the AI mannequin to interrupt down DOT’s historic value information in 2021 to make use of it for the predictions.
Surprisingly, the outcomes have been totally different from the earlier output.
Supply: ChatGPT
The outcomes famous little deviation from TradingView’s information, in comparison with the earlier output. The jailbreak model is thought to present outrightly false info, however this explicit occasion was barely totally different.
Then again, the traditional model resorted to attaching a direct hyperlink from CoinMarketCap to assist observe historic value information.
Supply: ChatGPT
Nonetheless, it’s value noting that the AI mannequin tracks totally different websites to collate information on cryptocurrency costs. These websites generally have totally different real-time value values for crypto-assets and will clarify the worth deviation witnessed within the preliminary and second outputs.
Subsequent, we nudged ChatGPT to foretell DOT’s value by the top of 2023 and 2024 based mostly on the above historic value information.
Though the traditional model put forth its typical disclaimer, the jailbreak model predicted DOT’s value to achieve $40-$60 by the top of 2023.
Supply: ChatGPT
We stretched ChatGPT to extrapolate the identical information and provides a modest common worth of DOT by the top of 2024. The AI mannequin set DOT’s value at $60-$80 by the top of 2024.
Supply: ChatGPT
Not everybody has the persistence to attend for long-term prospects. So, what do DOT’s quick and mid-term prospects seem like? The day by day chart may provide some clues.
Taking a look at DOT’s day by day value charts
Supply: DOT/USD, TradingView
At press time, DOT was buying and selling at $4.94. Its value fell greater than 5% inside every week.
After we take a look at its on-chart indicators, there isn’t a hope for the coin within the quick time period.
Each its Relative Energy Index (RSI) and Cash Circulation Index (MFI) rested a lot under the impartial 50-mark. Its On Steadiness Quantity (OBV) additionally confirmed a downtick.
In conclusion, DOT’s short-term prospects appear bearish. Nonetheless, we should maintain an in depth watch on rising developments within the business which will impression its efficiency.
Conclusion
As an AI device, ChatGPT is able to understanding complicated technical info. It has an apt understanding of the Polkadot ecosystem and the way the event of its parachains impacts DOT’s value motion.
Based mostly on current developments and total market sentiment, ChatGPT forecasted that DOT’s value in 2023 and 2024 may hit $60-$80, respectively.
