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 increase as extra parachains developments come onboard. In March 2023, greater than 20 parachains had been added to the Polkadot ecosystem, in accordance with the second version of Parachain Dispatch. The brand new tasks 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 staff 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 staff may search DOT from particular person holders by means of 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 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 asked ChatGPT to clarify what Polkadot is and the way its ecosystem works –
In abstract, ChatGPT acknowledged 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 functions”
The “decentralized functions” are also called “parachains.” The Polkadot ecosystem added 21 of those parachains final month, and every challenge staff 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 length.
Is your portfolio inexperienced? Examine DOT Profit Calculator
To additional gauge the AI mannequin’s understanding of the Polkadot, we asked it how parachain slot public sale works –
The “crowd mortgage” construction of sourcing DOT tokens includes “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 includes “staking” may entice regulatory scrutiny. For instance, Coinbase lately acquired a Wells Discover from the SEC. And, one of many objects of the potential lawsuit is reportedly its crypto-staking service.
So, we asked ChatGPT what crowd mortgage is and its authorized standing in the U.S. The reason was apt, however the AI mannequin couldn’t affirmatively state whether or not crowd loans are authorized in the U.S.
Right here is ChatGPT’s evaluation of the legality of crowd loans in 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. Primarily based on this reality, how will the 21 newly added parachains impression DOT’s worth?
This was the AI mannequin’s reply –
We would have liked to place a determine on the above potential upward stress on DOT’s worth as a result of added parachains. So, we pulled historic value information on DOT to assist make future value predictions.
Among the outcomes issued by ChatGPT had been inaccurate, with a large deviation from value information collated from TradingView.
For instance, ChatGPT acknowledged that DOT hit a excessive of $52 in December 2021. Quite the opposite, TradingView’s information 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 means of jailbreak techniques 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 had been completely different from the earlier output.
The outcomes famous a bit of deviation from TradingView’s information, in comparison with the earlier output. The jailbreak model is thought to provide outrightly false info, however this specific occasion was barely completely different.
Alternatively, the basic model resorted to attaching a direct hyperlink from CoinMarketCap to assist observe historic value information.
Nevertheless, it’s value noting that the AI mannequin tracks completely different websites to collate information on cryptocurrency prices. These websites generally have completely different real-time value values of crypto-assets and will clarify the worth deviation witnessed in the preliminary and second outputs.
Subsequent, we nudged ChatGPT to foretell DOT’s value by the tip of 2023 and 2024 primarily based on the above historic value information.
Though the basic model put forth its typical disclaimer, the jailbreak model predicted DOT’s value to achieve $100 by the tip of 2023.
We stretched ChatGPT to extrapolate the identical information and provides a modest common worth of DOT by the tip of 2024.The AI mannequin set DOT’s value at $300 by the tip of 2024.
Realistically, the DOT cryptocurrency might cross the $8.88 value degree by 2024 and attain a 23.60% FIB milestone if it trades increased.
Not everybody has the endurance to attend for long-term prospects. So, what do DOT’s brief and mid-term prospects appear like? The day by day chart may provide some clues.
Is $7 reachable?
On the time of press, DOT was buying and selling at $4.43. Its value fell by almost 5% inside every week. Whilst its relative power index (RSI) rested under the impartial 50-mark, its on stability quantity (OBV) appeared to be in bearish territory.
Conclusion
ChatGPT has an apt understanding of the Polkadot ecosystem and the way its parachains improvement may impression DOT’s worth in the long run.
Primarily based on latest developments and total market sentiment, ChatGPT forecasted that DOT’s value in 2023 and 2024 may hit $500 and $672, respectively.