Polkadot's Potential: Why This Underperformer Could Be Poised for a Rebound

While Bitcoin and Ethereum have seen significant gains this summer, Polkadot (DOT) has lagged behind, slipping nearly 12% in the past three months. However, analysts believe this underperformance could make DOT an undervalued asset heading into 2026.

According to a recent report from Coinbase, a potential rotation of capital from Bitcoin and Ethereum into altcoins could provide a short-term boost. The long-term bullish case for Polkadot is based on three key factors:

• Growing Web3 Adoption: As the original Web3 network, Polkadot is seeing increased use in decentralized applications and is well-positioned to benefit from broader adoption of the technology.
• Superior Performance: Polkadot’s network is capable of processing over 600,000 transactions per second (TPS), which is significantly faster than competitors like Solana and Ethereum, making it ready for a potential surge in traffic.
• Polkadot 2.0 Upgrades: A series of major upgrades are set to roll out this year. These improvements are designed to enhance scalability, computing efficiency, and the developer environment, which could serve as a turning point for the ecosystem.

The article outlines several potential price scenarios for Polkadot's future, ranging from a bullish rally to a new all-time high in the $70–$80 range, a base case of steady growth to $25–$35, and a bearish scenario where it remains stagnant. Ultimately, the outlook for DOT hinges on its ability to capitalize on Web3 expansion and its ongoing technical improvements.

August 2025, Cryptoniteuae