Polkadot (DOT) Up 6% As Top Analyst Tips AI-Backed Growth

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Polkadot (DOT) has underperformed in recent weeks, but top market analyst Michael van de Poppe believes AI could boost its performance soon. He’s identified a cycle low for DOT, which was around $6.85 at the time of writing. The price had risen by 6% in the previous 24 hours, closing some of the 1.27% drop over the last week. However, Polkadot remains bearish.

As a researcher studying the cryptocurrency market, I’ve noticed that Polkadot (DOT) hasn’t fared well in terms of price growth over the past few weeks. However, renowned market analyst Michael van de Poppe holds a positive outlook for this digital asset, attributing potential boosts to its performance due to advancements in Artificial Intelligence (AI) technology.

Polkadot Welcomes Numerous Features

As a crypto investor following Michael van de Poppe’s analysis, I believe Polkadot (DOT) has reached its defined cycle low based on his assessment. The current price trend reflects this observation.

Currently, the value of the digital asset is at $6.85 during my composition of this text, representing a 6% rise over the previous 24 hours. The recent price escalation is starting to offset the 1.27% decline experienced in the preceding week. However, Polkadot remains significantly influenced by a bearish market trend.

As an analyst, I’ve observed a significant decrease in Polkadot’s value over the past month, with its valuation falling by more than 27%. This downward trend has resulted in the DOT token fluctuating between a high of $9.73 and a low of $5.81 before settling at its current price.

$DOT is on a cycle low, while integrating many great features within the blockchain, also AI.
They have a multi-chain architecture ready for AI scalability.
In a sharded multichain setup, transaction congestion is alleviated, and AI computations become more effective due to improved resource utilization.
— Michaël van de Poppe (@CryptoMichNL) April 28, 2024

Expert: The leading analyst pointed out that several new features on the Polkadot protocol could potentially spark a turnaround for the downtrend of DOT‘s price in the future. One notable feature is the planned JAM protocol, which aims to replace its current Relay Chain interoperability protocol.

Precisely, it would replace the existing Relay Chain with a more modular and minimalistic design.

Approximately two weeks ago, Polkadot’s co-founder Gavin Wood hinted at the imminent rollout of the Join-Accumulate Machine (JAM) Upgrade. In a comparable fashion, Polkadot implemented a runtime upgrade on its mainnet to alter the chain’s underlying logic without necessitating a hardfork.

AI Integration to Revolutionize Polkadot Ecosystem

Van de Poppe is convinced that Polkadot’s multi-chain architecture holds significant potential for enhancing the scalability of artificial intelligence applications, in addition to its technical merits.

As a researcher studying the latest trends in the crypto space, it’s no shock to me that many projects are now exploring the integration of artificial intelligence (AI) technologies. The BytePlus team, which is part of the larger TikTok parent company, and Mysten Labs, creators of the Sui layer-1 blockchain, have recently announced a strategic partnership to bring AI algorithms into Sui’s protocol.

Polkadot could easily become part of the crowd and claim a share of the market. An analyst noted, “Polkadot’s sharded multi-chain structure gets rid of transaction congestion and enhances AI computation efficiency!”

As a crypto investor, I can tell you that Polkadot’s entry into the ecosystem is expected to be met with the presence of established projects such as Fetch.ai and SingularityNET. These projects have already made their mark in the space, so Polkadot will need to find a unique way to differentiate itself and add value to the community.

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2024-04-29 10:09