I asked ChatGPT what Polkadot’s prices would be in 2023

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 [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, based on 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 strain to DOT’s token worth as they drive demand. Notably, a venture crew 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 venture crew may search DOT from particular person holders via 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 clarify what Polkadot is and the way its ecosystem works –

Supply: ChatGPT 3.5

In abstract, ChatGPT said that,

“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 also called “parachains.” The Polkadot ecosystem added 21 of those parachains final month, and every venture crew should win a parachain slot public sale to realize entry to the core system for a specified time frame. It’s like paying for a lease over a sure agreed length. 

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To additional gauge the AI mannequin’s understanding of the Polkadot, we requested it how parachain slot public sale works –

Supply: ChatGPT 3.5

The “crowd mortgage” construction of sourcing DOT tokens includes “staking” to assist a venture win an public sale. This, merely put, is intriguing. Due to the present U.S regulatory strain on crypto-staking, something structured in a fashion that includes “staking” may appeal to regulatory scrutiny. For instance, Coinbase lately obtained 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.

Supply: ChatGPT 3.5

Right here is ChatGPT’s evaluation of the legality of crowd loans within the U.S –

Supply: ChatGPT 3.5

At this level, one factor is crystal clear. Parachains developments can drive demand for DOT tokens as a result of venture groups want them to win a parachain slot public sale. Primarily based on this truth, how will the 21 newly added parachains influence DOT’s worth?

This was the AI mannequin’s reply – 

Supply: ChatGPT 3.5

We wanted to place a determine on the above doable upward strain 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 have been inaccurate, with a large deviation from value information collated from TradingView. 

For instance, ChatGPT said 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. 

Supply: ChatGPT 3.5

The AI mannequin is restricted from making value predictions, so we unshackled it via jailbreak methods 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 have been completely different from the earlier output. 

Supply: ChatGPT 3.5

The outcomes famous a bit deviation from TradingView’s information, in comparison with the earlier output. The jailbreak model is understood to present outrightly false info, however this explicit occasion was barely completely different.

However, the basic model resorted to attaching a direct hyperlink from CoinMarketCap to assist monitor historic value information. 

Supply: ChatGPT 3.5

Nonetheless, it’s value noting that the AI mannequin tracks completely different websites to collate information on cryptocurrency costs. These websites generally have completely different real-time value values of crypto-assets and will clarify the worth deviation witnessed within 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.

Supply: ChatGPT

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. 

Supply: ChatGPT

Realistically, the DOT cryptocurrency might cross the $8.88 value degree by 2024 and attain a 23.60% FIB milestone if it trades greater.

Not everybody has the persistence to attend for long-term prospects. So, what do DOT’s brief and mid-term prospects seem like? The every day chart may provide some clues.

Is $7 reachable?

Supply: DOT/USDT, TradingView

On the time of press, DOT was buying and selling at $4.43. Its value fell by almost 5% inside per week. Whilst its relative power index (RSI) rested beneath the impartial 50-mark, its on steadiness quantity (OBV) appeared to be in bearish territory.

Conclusion 

ChatGPT has an apt understanding of the Polkadot ecosystem and the way its parachains growth may influence DOT’s worth sooner or later.

Primarily based on current developments and total market sentiment, ChatGPT forecasted that DOT’s value in 2023 and 2024 may hit $500 and $672, respectively.