BitDAO price prediction: Is the Web3 DAO token a good buy?
The price of the BitDAO cryptocurrency has seen a surge of 14% over 24 hours as of 9 January 2023. So what’s behind the sudden jump?
Decentralised autonomous organisations (DAOs) have grown in popularity as blockchain and cryptocurrency developers push to apply the full benefits of the decentralised nature of blockchain networks and smart contracts in managing community-based projects.
How does BitDAO work and what is a realistic BitDAO price prediction? In this article we look at the project’s recent developments and the latest price forecasts to help you decide whether to consider it as an investment.
What is BitDAO?
BitDAO launched in August 2021 and raised $230m in June 2021 from a private sale led by Peter Thiel, Founders Fund, Pantera Capital and Dragonfly Capital, among others.
The DAO is a collective of contributors who hold its BIT tokens. As a DAO, it has no founders or centralised development team. Instead, any individuals, development teams and research labs can submit proposals for the direction of the project, upgrades to the protocol, token swaps or partnerships, and token holders can then vote on whether to implement them.
BitDAO claims to be “one of the world’s newest and largest decentralised autonomous organizations, formed with the vision of leveling the economic playing field for every person in the world through the acceleration of the decentralised, tokenised economy.”
Cryptocurrency exchange Bybit pledged to contribute 2.5bps of its futures contracts trading volume to the BitDAO treasury, which was equivalent to $1bn annually in 2021. The treasury “can be used to provide liquidity to partners, and bootstrap new protocols such as decentralised exchanges (DEX), lending and synthetics protocols”.
Rather than developing a single blockchain, BitDAO “aims to support blockchain technologies through grants (à la Gitcoin), and support existing and emerging projects through token swaps,” according to its launch announcement.
The third-generation Internet, known as Web3, is based on decentralised, peer-to-peer networks that enable users to take control of their data and provide them with enhanced privacy.
BitDAO allocated over $638m across Autonomous Entities (AEs) and labs. It held more than $1.63bn in its treasury on 18 August 2022.
BitDAO token price history
BitDAO’s BIT cryptocurrency token started trading at $1.50 on 17 August 2021. The price moved up to $1.77 on 19 August but then dropped to $1.24 by 7 September.
The BIT price climbed as the token followed the cryptocurrency markets higher in November – a rally led by Web3 and metaverse-focused coins and tokens. BIT reached its highest price to date of $3.09 on 12 November 2021.
But, as cryptocurrency markets retreated and turned bearish, the BIT price fell to $1.71 in mid-December. After a brief uptick in January above $2, the price was in decline for most of 2022, reaching $0.4049 on 18 June.
Project developments lift BIT price
On 20 July 2022, Bybit said it had made an $89m contribution in ether (ETH), tether (USDT), USD Coin (USDC) and BIT to the BitDAO treasury for June.
Bybit is proud to support https://t.co/KRPTmhyQOM. We have made an ~$89M contribution (in $ETH, $USDT, $USDC, and $BIT) to the @BitDAO_Official treasury for June 1 through June 30.
— Bybit (@Bybit_Official) 20 July 2022
We pledge recurring contributions.
On 21 July 2022, BitDAO hosted a discussion on a proposal to launch a layer-1 blockchain with BIT as its native cryptocurrency. The blockchain would be optimised for Ethereum Virtual Machine (EVM) decentralised apps (dApps) such as derivatives decentralised exchanges (DEXs) and gaming, as well as DAO operations, participation, tokenomics and chain bridging.
On 10 August 2022, BitDAO announced that “AfricaDAO’s proposal to accelerate Web3 adoption across Africa has been approved to receive $20m in funding”.
According to the proposal:
The announcements in July lifted the BIT price back above $0.50. It rallied further to reach $0.7937 on 6 August 2022.
This month, in January 2023, the BitDAO community passed a proposal to buy back $100m BIT in USDT to control supply. As of 9 January 2023, BIT was trading at $0.47 and had a market cap of $977m, ranking it 41st on the crypto market’s top list, according to CoinMarketCap.
So what now for the token’s future value? Let’s look at the BIT price prediction outlook.
BitDAO price prediction: is the coin a buy or sell after recent moves?
The short-term outlook for the BitDAO price was neutral, according to data compiled by CoinCodex, with nine technical analysis indicators showing bearish signals compared with 21 bullish signals, as of 9 January 2023.
With BIT trading at $0.47 at the time of writing (9 January 2023), CoinCodex’s BitDAO price prediction showed the token rising by over 48% over the next month and reaching $0.6 973 by 8 February 2023.
Wallet Investor’s BitDAO price prediction for 2023 was bearish, estimating that the token could fall to $0.0563 by the end of the year. The site’s algorithm forecast that the BIT price could be $0.0760 by the end of 2024 and $0.0462 by the end of 2025.
The BitDAO crypto price prediction from Gov Capital raised questions about the token’s future, projecting that the price could drop to zero next year.
DigitalCoinPrice’s BitDAO coin price prediction was bullish, projecting that the price could average $0.96 in 2023 and $1.19 in 2024. Based on historical data, the website’s BitDAO price prediction for 2025 saw the token averaging $1.59 and then moving up to $4.71 in 2030.
PricePrediction was even more bullish in its long-term forecast, estimating that the token could average $0.59 in 2023, $0.90 in 2024 and $1.29 in 2025. The website’s deep artificial intelligence-assisted technical analysis generated a BitDAO price prediction for 2030 of $8.04.
If you are looking for a BitDAO price prediction to decide whether to invest in the token, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.
FAQs
Is BitDAO a good investment?
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the token is a suitable investment for you will depend on your risk tolerance and how much you intend to invest.
Will the BitDAO price go up or down?
The potential for the BIT token price could depend on its adoption in the cryptocurrency community and the direction of the crypto markets. You should do your own research to come up with an informed view of where the coin could trade in the future.
Should I invest in BitDAO?
The decision to invest in an asset is a personal one that depends on your specific circumstances, risk tolerance and portfolio composition.
If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision.
Keep in mind that past performance is no guarantee of future returns, and never invest money that you cannot afford to lose.
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