As the crypto markets start to pick up significant momentum, investors are looking at promising projects. While the bear market hasn’t been too kind to the industry, the BTC rally could probably precede an altcoin season.

Strong projects like Polkadot and Hedera stand out from the competition thanks to the advanced technology they run on. In this article, we explore DOT vs HBAR and compare their differences and similarities. In addition, we will also provide you with some price predictions from internet analysts. This should give you a good idea of what you should expect from them in the future.

What Do We Know About Polkadot?

Polkadot was created by Gavin Wood, one of the co-founders of Ethereum. His experience with the first smart contract platform showed him the flaws of a single-network protocol. The scaling issues Ethereum was facing were debilitating. They were also a huge drawback for blockchain technology adoption.

Consequently, in 2020, he created Polkadot, a blockchain protocol that promotes interoperability between bespoke blockchains. So, where Ethereum allowed developers to create their tokens, Polkadot allows them to create entire blockchains.

These specialized blockchains can communicate and exchange assets seamlessly, allowing for a genuine internet of blockchains.

  • The Relay chain is the base layer that creates consensus and provides interoperability.
  • Parachains are app-specific chains that run smart contracts and allow for linear scalability.

The DOT cryptocurrency is used for staking and securing the Relay Chain, as well as paying for gas when communicating with it. Additionally, DOT is also essential to the Parachain Auctions, where the community can decide what parachains receive a slot on the relay chain, as these are in limited numbers.

DOT Price Performance

The DOT cryptocurrency was one of the fastest-rising assets in the bull run of 2020-2021. From $2 at launch, it reached a staggering $53 valuation at the peak of the market. If you were to swap ETH to BTC at the time, it was a much less profitable venture.

The bear market has caused the price to retract dramatically, as DOT is currently trading at $4.9 per token.

Nevertheless, websites like Priceprediction.net provide a bullish vision for the project. They project a price of $12.86 for 2025 and as high as $81.92 for 2030.

What Do We Know About Hedera?

Hedera is a highly scalable decentralized ledger project. It aims to provide low-cost smart contract transactions to its users and developers. To achieve this, it uses a proprietary technology — the hashgraph.

Instead of creating blocks like other blockchains, it processes transactions in parallel, decreasing transaction time significantly. As such, Hedera aims to be more efficient than traditional blockchains. At the same time, it is more secure and decentralized.

The PoS consensus allows HBAR holders to participate in governance and securing the ledger, as well as pay for gas when interacting with smart contracts.

HBAR Price Forecast

Released at almost the same time as Polkadot, HBAR had a great run during the 2021 bullish cycle. The price rose from a bottom of $0.01 to an all-time high of $0.5 per token.

After the challenging crypto bear market, the price has retraced to a current $0.05 per token. With that in mind, Priceprediction.net provides a forecast of $0.15 per HBAR in 2025, a 3x increase from the current level. In the long term, their vision is even more enthusiastic, with a price of $0.99 in 2030.

Polkadot vs Hedera: Common Features

Polkadot and Hedera are both interesting projects, providing higher scalability to a growing industry. However, Polkadot is providing much more than just scalability with its interoperable network.

Instead, it sets the bases for a genuine Web3 revolution, where blockchains can freely communicate and exchange data and assets. In comparison, Hedera is simply a very fast Layer1 solution that competes with existing brands like Ethereum.

All in all, DOT is more likely to remain in the spotlight as more blockchains join its ecosystem, while HBAR has a lot of competition in its niche.