Polkadot bets on major upgrades to escape years of underperformance
Polkadot has faced a tough few years, lagging behind Bitcoin and Ether even after the Federal Reserve cut interest rates in 2024 and 2025. The blockchain platform, launched in 2020 by Ethereum co-founder Gavin Wood, once saw explosive growth but struggled as investors shifted to safer assets in 2022 and 2023. Now, major upgrades and a planned transition to a decentralised 'supercomputer' could reshape its future.
Polkadot surged in 2021, driven by low borrowing costs, free trading apps, social media hype, and investor excitement. But as interest rates rose, its price fell sharply in 2022 and 2023, with no strong rebound when the Fed later eased policy. Unlike Bitcoin and Ether, it failed to recover momentum.
The project is now preparing for a major overhaul. In September 2025, it set a fixed supply cap of 2.1 billion tokens, with over 75% already in circulation. A governance vote on the JAM (join-accumulate machine) upgrade—replacing its relay chain with a fully decentralised system—is expected in early 2026. If approved, this would transform Polkadot into a 'supercomputer' with faster, more flexible operations.
Further upgrades under Polkadot 2.0 have already reduced block times for parachains, allowed dynamic access to block space, and enabled multiple-core processing. By December 2025, the platform also plans to launch the 'Polkadot Hub', a dedicated parachain for smart contracts.
Analysts suggest that if Treasury yields drop, investors may return to Polkadot due to its clearer technical advantages over smaller altcoins. The project’s roadmap, including the JAM transition and supply cap, could position it for a recovery as crypto markets heat up again.
Polkadot’s upcoming upgrades and fixed token supply may attract renewed interest before 2026. The JAM transition, if passed, would mark a shift toward a fully decentralised infrastructure. With Treasury yields potentially falling, the project’s fundamentals could draw investors back after years of underperformance.
