Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
Polkadot [DOT]’s ecosystem continues to develop as extra parachains developments come onboard. In March 2023, greater than 20 parachains have been added to the Polkadot ecosystem, in response to the second version of Parachain Dispatch. The brand new initiatives embrace Ajuna Community, Astar Community, and Bifrost Finance, amongst others.
These new parachain developments may add upward stress to DOT’s token worth as they drive demand. Notably, a challenge group should win a Polkadot parachain slot public sale to be linked to the core community. The parachain slot public sale is settled in DOT tokens, and the challenge group may search DOT from particular person holders by a crowdfunding course of referred to as “crowd loans” to assist safe the slots.
To grasp the potential influence of those new developments on DOT’s worth, we tapped into ChatGPT to get extra nuanced insights and gauge the AI mannequin’s apprehension of Polkadot’s ecosystem.
Polkadot [DOT] ecosystem – ChatGPT Evaluation
Beginning off with the fundamentals, we requested ChatGPT to elucidate what Polkadot is and how its ecosystem works –
In abstract, ChatGPT said that,
“Total, Polkadot’s ecosystem is designed to foster innovation and collaboration between completely different blockchains, offering a versatile and scalable platform for builders to construct a variety of decentralized purposes”
The “decentralized purposes” are often known as “parachains.” The Polkadot ecosystem added 21 of those parachains final month, and every challenge group should win a parachain slot public sale to achieve entry to the core system for a specified time frame. It’s like paying for a lease over a sure agreed period.
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To additional gauge the AI mannequin’s understanding of the Polkadot, we requested it how parachain slot public sale works –
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 stress on crypto-staking, something structured in a fashion that entails “staking” may entice regulatory scrutiny. For instance, Coinbase not too long ago acquired a Wells Discover from the SEC. And, 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.
Right here is ChatGPT’s evaluation of the legality of crowd loans within the U.S –
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 reality, how will the 21 newly added parachains influence DOT’s worth?
This was the AI mannequin’s answer –
We wanted to place a determine on the above potential upward stress on DOT’s worth because of the added parachains. So, we pulled historic value knowledge on DOT to assist make future value predictions.
A number of the outcomes issued by ChatGPT have been inaccurate, with a large deviation from value knowledge collated from TradingView.
For instance, ChatGPT said that DOT hit a excessive of $52 in December 2021. Quite the opposite, TradingView’s knowledge confirmed it at a excessive of $39 on December 1, 2021.
The AI mannequin is restricted from making value predictions, so we unshackled it by jailbreak techniques to get modest value prediction values for DOT. We needed to ask the AI mannequin to interrupt down DOT’s historic value knowledge in 2021 to make use of it for the predictions.
Surprisingly, the outcomes have been completely different from the earlier output.
The outcomes famous a bit of deviation from TradingView’s knowledge, in comparison with the earlier output. The jailbreak model is understood to provide outrightly false info, however this explicit occasion was barely completely different.
Then again, the basic model resorted to attaching a direct hyperlink from CoinMarketCap to assist monitor historic value knowledge.
Nonetheless, it’s price noting that the AI mannequin tracks completely different websites to collate knowledge on cryptocurrency costs. These websites generally have completely different real-time value values of crypto-assets and may 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 primarily based on the above historic value knowledge. Though the basic model put forth its typical disclaimer, the jailbreak model assertively however jokingly predicted DOT’s value to hit $80 by the top of 2023.
We stretched ChatGPT to extrapolate the identical knowledge and give a modest common worth of DOT by the top of 2024. The AI mannequin set DOT’s value at $120 by the top of 2024.
Not everybody has the endurance to attend for long-term prospects. So, what does DOT’s brief and mid-term prospects seem like? The every day chart may provide some cues.
Is the $7 worth reachable?
On the time of press, DOT was buying and selling at $5.90, reflecting a downward value motion. The RSI (Relative Power Index) was a lot under the 50 mark – a bearish sign that might push DOT’s value additional down.
As well as, the Chaikin Cash Circulation (CMF) index was within the unfavorable zone, displaying sellers had leverage out there. With the OBV (On Steadiness Quantity) additionally registering a downtick, we should always not count on a surge in shopping for quantity or any upward value motion towards the $ 7 mark anytime quickly.
However as historic value knowledge reveals, it’s tough to foretell the worth of any token. So, we shouldn’t be too pessimistic in our strategy to DOT.
In conclusion, DOT appeared bearish within the brief time period. If the CMF turns constructive and OBV reveals an uptick, we will hope for DOT to recuperate its worth.
Conclusion
ChatGPT has an apt understanding of the Polkadot [DOT] ecosystem and how its parachains growth may influence DOT’s worth sooner or later.
Based mostly on current developments and total market sentiment, ChatGPT forecasted that DOT’s value in 2023 and 2024 may hit $500 and $672, respectively.