When I asked ChatGPT what Polkadot’s predictions are for 2024, the responses were pretty interesting

AI Basics


Disclaimer: The information presented does not constitute financial, investment, trading, or other kind of advice and is solely the opinion of the author.

polka dot [DOT]The ecosystem continues to expand as more parachain development joins in. According to the second edition, more than 20 parachains were added to the Polkadot ecosystem in March 2023. Parachain dispatchNew projects include Ajuna Network, Astar Network, Bifrost Finance and more.

The development of these new parachains could put upward pressure on DOT’s token value as it drives demand. Specifically, the project team must win the Polkadot parachain slot auction to connect to the core network. Parachain slot auctions will be settled in DOT tokens and project teams will be able to secure slots for DOT from individual owners through a crowdfunding process known as “crowd loans”.

To understand the potential impact of these new developments on the value of DOT, we leveraged ChatGPT to gain more nuanced insights and how our AI models perceive the Polkadot ecosystem. I rated it.

polka dot [DOT] Ecosystem – ChatGPT Analysis

Starting with the basics, we asked ChatGPT to explain what Polkadot is and how its ecosystem works.

Source: ChatGPT 3.5

In summary, ChatGPT said:

“Overall, the Polkadot ecosystem is designed to foster innovation and collaboration across different blockchains, providing a flexible and scalable platform for developers to build a variety of decentralized applications. increase.”

A “decentralized application” is also called a “parachain”. The Polkadot ecosystem added 21 of these parachains last month. Each project team must win a parachain slot auction to gain access to the core system for a specified period of time. This is like paying a lease for a specific, agreed-upon period.


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To further assess the AI ​​model’s understanding of polkadots, we asked how the parachain slot auction works.

Source: ChatGPT 3.5

The “crowd loan” structure to raise DOT tokens involves “staking” to help projects win auctions. This is, simply put, interesting. Due to the current US regulatory pressure on staking of crypto assets, anything structured in a way that includes “staking” may come under regulatory scrutiny. For example, Coinbase recently received a Wells Notice from the SEC. And one of the potential lawsuit targets is reportedly a cryptocurrency staking service.

So we asked ChatGPT what cloud loans are and their legal status in the US. The explanation was good, but the AI ​​model was unable to say positively whether cloud loans were legal in the US.

Source: ChatGPT 3.5

Here is ChatGPT’s analysis of the legality of cloud loans in the US –

Source: ChatGPT 3.5

At this point, one thing is very clear. Parachain development may drive demand for DOT tokens, as project teams need DOT tokens to win parachain slot auctions. Based on this fact, how will the newly added 21 parachains affect the value of DOT?

This was the AI ​​model’s answer –

Source: ChatGPT 3.5

I needed to put some numbers on the possible upward pressure on the DOT value due to the added parachain. So, in order to make future price predictions, I pulled out DOT historical price data.

Some of the results published by ChatGPT were inaccurate and deviated significantly from the price data collated from TradingView.

For example, ChatGPT says the DOT hit a high of $52 in December 2021. Conversely, TradingView data showed a high of $39 on December 1, 2021.

Source: ChatGPT 3.5

Since AI models are limited in making price predictions, jailbreak techniques Get a conservative price forecast for DOT. We had to ask the AI ​​model to analyze historical DOT price data for 2021 and use it for forecasting.

To my surprise, the result was different from the previous output.

Source: ChatGPT 3.5

The results showed slight deviations from TradingView’s data compared to the previous output. Jailbroken versions are known to provide decidedly false information, but this particular instance was slightly different.

On the other hand, the previous version relied on attaching a direct link from CoinMarketCap to track historical price data.

Source: ChatGPT 3.5

However, it is worth noting that the AI ​​model tracks various sites to collate data on cryptocurrency prices. These sites may have different real-time price values ​​for crypto assets, which could explain the price deviations seen in the first and his second output.

We then fine-tuned ChatGPT to predict DOT prices by the end of 2023 and 2024 based on the historical price data above. The classic version presented the typical disclaimer, The jailbroken version predicted the price of DOT to reach just $10 by the end of 2023.

Source: ChatGPT

We extended ChatGPT to extrapolate the same data to produce a modest average DOT by the end of 2024. The AI ​​model has set the DOT price at $20 by the end of 2024.

The AI ​​model has set the price of DOT above $600 by the end of 2024, which does not seem very realistic given the current state of the coin. Last year the DOT was priced at $26.72.

The Polkadot price dropped after a month, hovering around $19. The DOT currency fell sharply after he hit his $55 ATH last November. Polkadot, on the other hand, has seen considerable growth since the beginning of the year.

The DOT cryptocurrency could cross the $8.88 price level by 2024 and reach the FIB milestone of 23.60% if it trades higher.

Source: ChatGPT

Not everyone has the patience to wait for long-term prospects. So what does the DOT’s short- and medium-term outlook look like? The daily chart may offer some clues.

Is $7 reachable?

Source: DOT/USDT, TradingView

At press time, the DOT is trading at $5.65, reflecting the bearish price movements of the past seven days. The RSI (Relative Strength Index) has broken below the 50 mark. This is another bearish signal pushing the DOT price down.

The Chaikin Money Flow (CMF) index was negative, indicating that sellers were influential in the market. The OBV (on-balance volume) has also recorded a downtick, so the drop in trading volume could push the DOT further below the $5 price mark.

In conclusion, the DOT looks bearish in the short term as evidenced by the RSI below 50. Unfortunately, the medium-term outlook could only turn bullish if prices rise above the $7s.

Conclusion

ChatGPT has a good understanding of the Polkadot ecosystem and how its parachain development will affect the value of DOT in the future.

Based on recent developments and overall market sentiment, ChatGPT predicted that DOT prices in 2023 and 2024 could reach $500 and $672, respectively.



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