Polkadot Records New Achievements In Dev’t Activity, But Why Is DOT Price Down? – Crypto News – Crypto News
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Polkadot Records New Achievements In Dev’t Activity, But Why Is DOT Price Down? – Crypto News

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2 years ago

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Polkadot (DOT) has ushered in the first week of 2023 on a strong note, rising 8% in the last seven days, data from Coingecko shows.

The ecosystem itself has been very bullish recently, following the trend of the crypto market. According to Polkadot Insiderwho posted an on-chain update of the ecosystem, Polkadot is registering new users on-chain, peaking on January 6th at 2,126 new users.

The ecosystem also saw gradual increases in revenue. Compared to December’s final week– which includes January 1st, in line with Polkadot Insider’s chart– Average revenues on the last week of the month were at $671.8 million, but the average rose this week to $709.3 million. 

Image: Polkadot Insider/Twitter

Connecting the Dots

Polka Dot released A blog post rounding up the developments on the ecosystem last year and it is impressive nonetheless. Even with the strong grip of the bear market, Polkadot has over 550 projects running on-chain or being developed on the ecosystem. With over 71 parachains on Polkadot, development will continue even in the midst of the bear market.

D.O.T.

Chart: Santiment

This can be seen in the development activity on-chain which skyrocketed with the beginning of the year. Polkadot also scored major partnerships with Japan phone operators. ntt docomo and video game company square enixfurther strengthening the ecosystem’s Web3 infrastructure.

But positive revenues, booming dev activity, and major tie-ups could have no big effect on DOT’s price, despite its latest weekly ascent. The token has not broken its sluggish pace which started in May last year. This downtrend, if not altered this year, will eventually lead the token to retest its support at $4.

Polkadot ‘Sucker Rally’

As of writing, the token is changing hands at $4.8 which is not a far cry from the $5 resistance that halted any bullish run for DOT. According to crypto analyst Market MobsterThe rally that DOT has experienced is just what they call a “sucker rallies.”

DOT total market cap at $5.7 billion on the daily chart | Chart: TradingView.com

Other analysts, however, are bullish that the token would break out of its current macro trend and rise. However, this week’s Consumer Price Index data release would be a dice roll for the broader financial space.

Image: GURU/Twitter

The token may enter a sideways motion as the market waits for the release of the CPI. However, the token’s correlation with BTC might give a needed boost to finally end the macro trend it has followed since last year.

-Featured image from Cryptoglobe

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