Polkadot Records Recent Achievements In Dev’t Activity, But Why Is DOT Price Down?

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

The ecosystem itself has been very bullish recently, following the trend of the crypto market. In keeping with Polkadot Insider, who posted an on-chain update of the ecosystem, Polkadot is registering latest users on-chain, peaking on January sixth at 2,126 latest users. 

The ecosystem also saw gradual increases in revenue. In comparison with December’s final week– which incorporates January 1st, in step with Polkadot Insider’s chart– average revenues on the last week of the month was at $671.8 million, but the common rose this week to $709.3 million. 

Image: Polkadot Insider/Twitter

Connecting The DOTs

Polkadot released a blog post rounding up the developments on the ecosystem last yr and it’s impressive nonetheless. Even with the strong grip of the bear market, Polkadot has over 550 projects running on-chain or are being developed on the ecosystem. With over 71 parachains on Polkadot, development will proceed even within the midst of the bear market. 


Chart: Santiment

This may be seen in the event activity on-chain which skyrocketed with the beginning of the yr. Polkadot also scored major partnerships with Japan phone operator NTT Docomo and video game company Square Enix, further strengthening the ecosystem’s Web3 infrastructure. 

But positive revenues, booming dev activity, and major tie-ups could haven’t any big effect on DOT’s price, despite its latest weekly ascent. The token has not broken its sluggish pace which began in May last yr. This downtrend, if not altered this yr, 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 isn’t a far cry from the $5 resistance that halted any bullish run for DOT. In keeping with crypto analyst Market Mobster, the rally that DOT has experienced is just what they call a “sucker rallys.”

Some $DOT evaluation

Watch out of a lot of these ‘suckers rallys’

As much as I really like @Polkadot I’m not adding to my bag here, monster downtrend needs to interrupt structure to present me more confidence

99% of coins appear to be this if you zoom out. You need to have bought it weeks ago pic.twitter.com/4cPzh0xfVZ

— Market Mobster (@MarketMobsterUK) January 9, 2023

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

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

Image: GURU/Twitter

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

-Featured image from Cryptoglobe

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