Polkadot to Outperform Ethereum, Solana, and Cardano in 2025?

• Polkadot (DOT) has dropped 10.57% since October last year. 
• ETH, ADA, and SOL have outperformed ADA in the past year. 
• DOT rose to an ATH of $55 when the popularity of parachains was at peak.

Polkadot (DOT), a leading blockchain project built on the concept of parachains, may be approaching a breakout and could outperform its rivals Ethereum (ETH), Solana (SOL), and Cardano (ADA) in 2025.

Data from CoinMarketCap shows DOT’s performance in the past few days has been underwhelming. The cryptocurrency fell 5.12% in the past 24 hours and is trading at $3.95, following a 3.92% decline in the last seven days. Over the last 30 days, DOT has dropped 6.18% and is down 92.82% from its all-time high of $55, reached in the 2021 bull market.

DOT’s market cap has dropped to $5.98 billion from an all-time high of $53 billion. At the time of this report, the digital asset’s trading volume is $161.6 million, up 26.58% in the past 24 hours. Since October of last year, DOT has fallen a massive 10.57% and is one of the worst-performing blue-chip tokens of this cycle.

Read also: A Tale of Two Cryptos at $70K: Bitcoin vs. Ethereum

ETH has also declined 5.29% and is trading at $2,508. The market leader is up 38.48% since October 2023 and is down 48.79% from its all-time high of $4,891.70. ADA has fallen 4.58% and is trading at $0.3409, down 89.01% from its all-time high of $3.10. Since October 2023, ADA has climbed only 18.10%.

Meanwhile, SOL is trading at $166.75, down 4.76% in the past 24 hours and 35.88% from its all-time high of $260.06. In the past year, SOL has surged 336.11% and is one of the best-performing blue-chip tokens this cycle.

Polkadot 2.0: A Potential Catalyst for Growth

It is important to note that DOT has the potential to outperform ETH, SOL, and ADA because Polkadot 2.0 is about to launch. This upgrade will bring significant changes to the project’s price action.

Polkadot 2.0 will introduce deflationary pressure to the Polkadot ecosystem by introducing coretime, which burns DOT. This could lead to the price of the cryptocurrency increasing significantly in the near future.

The DOT price analysis, using the chart below, confirms that the 16th-largest digital asset by market cap is struggling to attract the same level of capital as it did in 2021 during the parachain hype.

The Relative Strength Index (RSI) is at 39.95, which means that the bulls have lost control of the DOT price action. Further price crashes are possible if buying volume does not increase. The gradient of the line suggests that lower prices are likely if buying volume remains low.