Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
Polkadot’s [DOT] released its newest treasury spending report this week. As per the report, its spending jumped from $13.4 million in 2022 to $21.06 million in 2023.
As of October 18, the Polkadot treasury has spent a complete of US$21 million (3.9 million DOTs) in 2023, in contrast with US$13 million (1.7 million DOTs) final yr. Growth spending accounts for half, outreach spending 38%, working bills 9%, and analysis and different 2%.…
— Wu Blockchain (@WuBlockchain) October 20, 2023
The Polkadot Treasury’s spending registered 4 years of consecutive progress within the final 4 years.
Regardless of this, DOT is at present hitting its lowest point within the yr on account of an extended crypto winter. At press time, it was buying and selling at $3.725.
Is your portfolio inexperienced? Try the DOT Profit Calculator
Polkadot had a market cap of $4.6 billion at the time of writing, making it the fifteenth 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 Exchange Commission (SEC) in mid-July.
The U.S. District Court docket of the Southern District of New York ruled 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 is not 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 lapped up the judgement immediately, producing a value rally throughout tokens. However no token may maintain the value rally.
Parachains onboard Polkadot
Polkadot’s ecosystem continues to develop as extra parachains developments come onboard. By the top of Q1 2023, over 40 parachains had received contemporary public sale slots on Polkadot, according to the Q1 replace. The brand new tasks embrace Zeitgeist and Subsocial, amongst others.
These new parachain developments may add upward stress to DOT’s token worth as they drive demand. Notably, a mission crew 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 mission crew may search DOT from particular person holders by a crowdfunding course of recognized as “crowd loans” to assist safe the slots.Â
To grasp the potential influence of those new developments on DOT’s worth, we tapped into ChatGPT to realize 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 clarify what Polkadot is and the way its ecosystem works –
In abstract, ChatGPT acknowledged,
General, 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 additionally recognized as “parachains.” The Polkadot ecosystem added 21 of those parachains final month, and every mission crew should win a parachain slot public sale to realize entry to the core system for a specified time period. It is like paying for a lease over a sure agreed length.Â
To additional gauge the AI mannequin’s understanding of Polkadot, we requested it how parachain slot public sale works –
The “crowd mortgage” construction of sourcing DOT tokens includes “staking” to assist a mission 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 not too long ago acquired a Wells Discover from the SEC. One of many objects of the potential lawsuit is reportedly its crypto-staking service.Â
So, we requested ChatGPT what a 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 point, one factor is crystal clear. Parachains’ growth can drive demand for DOT tokens as a result of mission groups want them to win a parachain slot public sale. Primarily based on this, how will the 21 newly added parachains influence DOT’s worth?
This was the AI mannequin’s reply –Â
We have to put a determine on the above potential upward stress on DOT’s worth as a result of added parachains. We pulled historic value information on DOT to assist make future value predictions.
Some outcomes issued by ChatGPT had been inaccurate, with a large deviation from value information collated from TradingView.Â
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 1 December 2021.Â
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 information in 2021 to make use of it for the predictions.Â
Surprisingly, the outcomes had been completely different from the earlier output.Â
The outcomes famous little deviation from TradingView’s information, in comparison with the earlier output. The jailbreak model is recognized to present outright false info, however this explicit occasion was barely completely different.
Then again, the traditional model resorted to attaching a direct hyperlink from CoinMarketCap to assist observe historic value information.Â
Nevertheless, it is value noting that the AI mannequin tracks completely different websites to collate information on cryptocurrency costs. These websites typically have completely different real-time value values for crypto-assets and will clarify the value 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 information.
Although ChatGPT offers speculative solutions solely, this time, it gave a whole determine of $70-$90.
We stretched ChatGPT to extrapolate the identical information and provides a modest common worth of DOT by the top of 2024. The AI bot expects DOT’s value to rise to $90-$110.
Not everybody has the endurance to attend for long-term prospects. So, what do DOT’s quick and midterm prospects appear to be? The each day chart may supply some clues.
Trying at DOT’s each day value charts
At press time, DOT was buying and selling at $3.72. Each its Relative Power Index (RSI) and Cash Circulate Index (MFI) rested under the impartial 50-mark. In conclusion, its on-chart metrics counsel a bearish value motion.
Learn Polkadot’s [DOT] Price Prediction 2023-2024
ConclusionÂ
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.
Although ChatGPT forecasted DOT’s value may hit $90-$110 in 2024, solely time will inform if it made the proper prediction.