Benjamin Cowen, a popular crypto analyst, warns Ethereum rival should the markets rise again Polkadot (DOT) announced a price forecast that it expects to come true.
Speaking about DOT in an interview with Altcoin Daily, Cowen said that if the total cryptocurrency market cap reaches close to $10 trillion, the DOT could quite easily triple its previous all-time high of $55.
The analyst noted that such a rally that could happen in the DOT could happen similarly to what Cardano (ADA) has done in previous market cycles.
“If we can reverse this trend and start the higher trend; Let’s look at the asset class as a whole – let’s say [toplam kripto piyasa değeri] it’s hit like $10 trillion in the next 18 months – then I think we can easily see those levels of a few hundred dollars in Polkadot. We’re talking about a 3x increase from the previous all-time high (ATH).
The ADA made it happen. ADA was a coin that was only worth a little over a dollar in 2018, and three years later, almost exactly three years later, it has tripled from its previous all-time high to $3.
If we reach another bull market, I think it is quite reasonable for it to rise to these levels. If we really see another bull market surge and Bitcoin goes above $100,000 then you can see these valuations on Polkadot.”
Cowen said that the main prerequisite for Polkadot to see such gains is, Bitcoin (BTC) believes it will need to increase its pace and possibly start trading above the six-digit barrier.
“To be clear, these valuations for Polkadot will almost certainly not happen if Bitcoin is at less than a six-digit price point. With Bitcoin at $50,000 and Bitcoin itself just over a few hundred billion dollars market cap, most of these altcoin projects will not reach market caps of several hundred billion dollars.”
As we have reported as Koinfinans.com, the successful analyst who stated that Bitcoin determines such limitations on cryptocurrencies, therefore, if Bitcoin reaches a market valuation of 2-4 trillion dollars, then some of the tier-1s are worth several hundred billion dollars. He said he would let it go to market values. But he states that these prices cannot be sustained if Bitcoin itself continues to hold less than $1 trillion as it is now.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.