Posted:
- Polkadot sought a revival through a strategic partnership amid competition for market attention.
- Social engagement declined, while the protocol faced declining activity and revenue.
In the rapidly evolving cryptocurrency sector, maintaining relevance is crucial. Dot[DOT]Despite being a promising blockchain project, it has struggled to attract and maintain the attention of the crypto community in recent months.
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Now, Polkadot has entered into a strategic partnership with airdrop.com, a move aimed at reigniting interest in the protocol.
On the dot
The collaboration went beyond mere partnership, as it also included an incentive strategy. Polkadot introduced the concept of potential airdrops through the airdrop.com platform.
Airdrops, an established marketing tool in the crypto space, entices users with the prospect of receiving free tokens. This approach was intended not only to increase awareness, but also to drive user engagement within the Polkadot ecosystem.
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????Uniquely identified users have fully claimed the airdrop allocation (the users must install a DOT wallet to…— Polkadot Insider (@PolkadotInsider) September 23, 2023
Despite these proactive measures, Polkadot’s social media presence has encountered hurdles. Social mentions of DOT, Polkadot’s native token, saw a marginal decline of 0.2%.
Even more telling was how social engagement related to DOT saw a significant decline, plummeting 9.5% in the past week. These statistics reflected a decrease in online discussions and interactions related to Polkadot.
This decline in social activity inevitably raised questions about the prevailing sentiment surrounding DOT. The weighted sentiment indicator for DOT fell significantly over the past month.
This decline indicated a possible lack of enthusiasm or positive sentiment among investors and participants in the Polkadot ecosystem.
Source: Santiment
DOT sees red
Examining DOT’s price, it was trading at $4.03 at the time of writing. In recent weeks, DOT has experienced a significant drop in value. The critical question that emerged was whether DOT could reverse this trend and break the resistance levels, especially the notable $4.22 mark.
The Relative Strength Index (RSI) was at 44.55, indicating room for potential price movement and a decline in momentum. At the same time, the Chaikin Money Flow (CMF) registered at 0.06, indicating mild buying pressure.
Realistic or not, here is DOT’s market cap in BTC terms
Source: trading view
The broader look at the overall health of the protocol revealed some negative signals. Activity on the Polkadot network saw a notable decline of 19.9% over the past month. This drop indicated a possible slowdown in user interactions and engagement.
Additionally, protocol revenue saw a significant decline of 13.3% over the same period. These statistics raised legitimate questions about the financial sustainability and performance of the protocol.