Crypto Analyst Benjamin Cowen Has A Huge Target For Polkadot
A top crypto analyst Benjamin Cowen looks into Polkadot is talks about the potential upside for its native token DOT, which could happen once the crypto market flip bullish again.
The analyst spoke with crypto YouTube channel Altcoin Daily, saying that DOT could triple its previous all-time high of $55, assuming that the total cryptocurrency market cap explodes to $10 trillion valuation in the near future.
Cowen explains a rally of that size would replicate what Cardano (ADA) did in past market cycles.
“If we can turn this train around and start trending higher and we’re looking at, say, the asset class as a whole going to – let’s call it $10 trillion in the next 18 months or something – then I think you could easily see Polkadot at a couple hundred bucks. You’re talking about like a 3x on a prior all-time high.
ADA did that. ADA is a coin that went to a little over a dollar in 2018 and then three years later, basically almost exactly three years later… it went to $3, it did a 3x on a prior all-time high. I think that’s somewhat reasonable for it to go up to those levels if we get another bull market. If we actually see another bull market surge and Bitcoin goes north of $100,000, then you could see those valuations from Polkadot.”
Cowen, however, notes that in order for Polkadot to go parabolic, Bitcoin (BTC) has to move up to new levels and reach six-digit valuation.
“I should be clear, those valuations for Polkadot are almost assuredly not going to happen if Bitcoin is less than six figures. If Bitcoin is $50,000, a lot of these altcoin projects are not going to be able to make it to several hundred billion dollar market caps if Bitcoin itself is only just above a several hundred billion dollar market cap.
Bitcoin sort of sets the limits on these things so if Bitcoin goes to $2-$4 trillion, then it would allow some of the layer-1s to go to, say, several hundred billion dollar market caps but if BItcoin itself is coming in at less than $1 trillion where it is right now it just simply does not support those valuations.”
