Volatile Price of Dust: Can DUST Protocol Price hit ATH?

Muhammad Naeem

Blogger

More than 20,000 known crypto tokens are currently trading on multiple blockchains. Most of the tokens use soft fork or copy-paste techniques to write smart contracts and even offer utilities similar to other coins – like some templates. However, there are only a few coins that choose different and hard paths of innovation and novelty. Dust Protocol is one such coin that stands out as a DeFi solution among the thousand other projects.

What is DUST Protocol?

Dust Protocol is yet another multi chain project that envisions offering a true decentralized ecosystem. Through its decentralized protocol DUST token offers utility and governance through a community-led initiative.

Usually, most of the tokens are offered through ICOs and private sale and until the public sales start, the price of the token is already appreciated. Despite this, if the community purchases the token in hopes of its value increase, the pre-sale, and ICO holders start selling the token and dumping its price at the very beginning.

What is Dust Protocol Price

Furthermore, if the token is a governance token, the large share held by the team gives more voting rights to the team behind the project, hurting the entire system of governance. However, in the case of DUST, things have been really promising. There was no ICO or presales and the token was up for sale in a just manner.

Since DUST coin is based on multiple chains, there are different smart contracts for it. DUST promotes Ethereum, Polygon, Solana, and Wormhole.

Also, the team held zero tokens and the initial supply of the token was set to 0 which means all the tokens have to be minted over time. This helped Dust Protocol to maintain and appreciate in value over time. Right now, 100% supply is in circulation as DUST emissions ended on February 22 this year.

Price of Dust:

The price of DUST protocol today is $0.63 and the coin is nearly 94% down from its all-time high. DUST Protocol price is calculated on the base daily average volume of $753,800. As far as its ranking is concerned, according to its market cap, the current DUST protocol ranking is #689 with a market cap of $12.126 million. Out of 33.3 million DUST coins, 19.143 are in circulation.

Price of DUST Protocol

Can Price of Dust Protocol hit an ATH?

The price of Dust Protocol (DUST) has been extremely volatile since its launch in March 2022. The token started trading at around $0.001 on its launch and touched an all-time high of $7.58 on May 29, 20221, when the entire market was bullish. 

However, when the crypto market starts to lose market cap, the price of Dust drops, and the current Dust Protocol Price is $0.634. The price of DUST has decreased by 90% and the main reasons for this are overall bearish market trends, regulatory trends, and global regulations.

Now the question is if the price of dust protocol can reach its all-time high again?

Well, some analysts believe that due to its strong fundamentals, the Price of Dust Protocol has the potential to recover and regain its all-time high. The reasons to support their arguments are the team behind the project, its true decentralized nature, and the limited supply of the token. Moreover, the token has a strong value proposition and a loyal community, and with a slightly bullish sentiment, the DUST can increasingly recover.

DUST Protocol Price Prediction:

Trend-Based Extrapolation Method

We are in a bearish market and when the market recovers, it becomes easier to predict which coins will recover and which might not recover despite the bullish trend. To predict the price of DUST, we can use the trend exploration method. In this method, we follow the price behavior using a linear regression model to fit a line through the historical data points of the token’s price.

Using this method, we can see that the price of Dust Protocol has been following a downward trend since its all-time high in May 2022. The equation of the trend line is:

y = -0.0167x + 7.5844

where y is the price in USD and x is the number of days since March 1, 2022 (the launch date of the token).

If we plug in some values for x, we can get some predictions for y:

x = 365 (one year after launch): y = $1.32

x = 730 (two years after launch): y = -$5

x = 1095 (three years after launch): y = -$11.32

Dust Price: Dust Protocol Price Prediction

Since the price goes negative, we can guess that this price model has some flaws and cannot be trusted with the price prediction for every situation.

Price vs. Sentiments:

Some projects have really good communities and when they feel bullish, they can actually pump the price. So another way of predicting the price is to use a sentiments based extrapolation model. This model reflects the sentiments and opinions of people on the social media platforms.

Social Sentiments and price of dust protocol

Using this method, we can see that the sentiment of Dust Protocol has been fluctuating between positive and negative since its launch. The sentiment score ranges from -100 (very negative) to +100 (very positive). This is calculated based on the number and tone of mentions, comments, likes, retweets, upvotes, etc.

If we use this method to predict the future price based on a given the sentiment score, we can get some estimates by using a simple linear interpolation technique:

Sentiment score = -100 (very negative): Price = -$5.72 (all-time low)

Sentiment score = -50 (negative): Price = -$2.55 (average of current price and all-time low)

Sentiment score = 0 (neutral): Price = $0.62 (current price)

Sentiment score = +50 (positive): Price = $3.79 (average of all-time high and current price)Sentiment score = +100 (very positive): Price = $7.58 (all-time high)

Apparently, this method works well and predicts that the price of DUST can recover and hit its all-time high again. This requires the alt coin market to recover and the public remains bullish about the DUST coin.

Take Away:

Technical and fundamental analyses are based on previous coin price actions, the team behind them, and the complex price indicators. Some predictions are correct but no indicator can assure 100% accuracy. Do your own research before investing and use only these analyses for making an educated decision.