Altcoin

Interest in DOT at ATL: What’s going on?

User Avatar
By Blocktivist Add a Comment


Contents
What has Polkadot been up to?DOT is about neglect
  • Polkadot’s development activity has reached an all-time high.
  • In contrast, the price of DOT continued to fall as interest rates fell to all-time lows.

Development activity on Layer 0 blockchain Polkadot [DOT] has hit an all-time high as interest in its DOT coin continues to plummet, data from Token Terminal revealed.

Read Polka Dots [DOT] Price Forecast 2023-24

Development activity is an important metric because it provides insight into a crypto project’s commitment to creating a working product and the likelihood of new features being delivered. In addition, high development activity often reduces the possibility of the project being an exit scam.

This metric tracks the number of unique contributors to development activities, the number of events for a project, and the number of unique contributors to GitHub activities.

According to data from Token Terminal, the number of core developers on Polkadot has increased by 39% over the past year.

What has Polkadot been up to?

The increase in development activity on the Polkadot network this year can be attributed to the two major technical upgrades made to the Layer 0 chain in recent months: the release of Polkadot v0.9.43 and the launch of XCM v3.

In January, after 15 months of development, Polkadot launched the third iteration of its cross-consensus communication format (XCM). The V3 upgrade introduced a number of new features, including support for cross-chain message passing (XCMP), which allows data and tokens to be transferred between different blockchains.

Also, Polkadot’s v0.9.43 upgrade was released on June 20 and introduced two new features to the blockchain network. These are database migrations and runtime migrations. Database migrations allow the upgrade of the database to the latest state, while runtime migrations allow the upgrade of a parachain runtime.

Interestingly, despite these attempts to improve Polkadot’s efficiency to boost network user activity, the number of active addresses on the chain has dropped. As a result, transaction costs have gone down in recent months.

See also  Polygon: Could high network activity push MATIC north?

According to Token Terminal, the daily transaction fees paid to use Polkadot have dropped 15% over the past six months. During that period, the protocol income from fees also took a hit.

Source: Token Terminal

DOT is about neglect

At the time of writing, DOT changed hands for $5.24, a 21% drop in value over the past six months. Things looked more gloomy on the daily chart, with key indicators pointing to severe bearishness in the DOT market.

For example, a new bear cycle was in progress at the time of this going to press and has been since the beginning of the month.

According to the alt’s Moving Average Convergence Divergence (MACD) indicator, the trendline (orange) crossed the MACD line (blue) in a downward trend on July 10, indicating that the bears have regained control of the DOT and have since begun their DOT to distribute companies.

Furthermore, the coin’s Chaikin Money Flow (CMF) was below the centerline at -0.04. Typically, a CMF reading below zero is a sign of weakness in the market, as it signals that liquidity is being abandoned and often precipitates further price declines.

Source: DOT/USDT, TradingView

Is your wallet green? Check out the Polkadot Profit Calculator

Interestingly, despite the increased distribution of coins since the start of the month, an Open Interest assessment revealed an uptick.

However, a closer look at DOT’s funding rates on cryptocurrency exchanges revealed that most of the trading positions opened in the past month were against the coin’s price.

Source: Coinglass



Source link

TAGGED: , , ,
Share This Article
Leave a comment
Lost your password?