Can Polkadot lure in more users with this latest development
- Despite challenges, Polkadot’s revenue variation surged by 25.6% in the last week, boosting its market appeal.
- While revenue grew, activity fluctuated, with declining development.
In the tumultuous year of 2023, Polkadot [DOT] encountered challenges in asserting its prominence, particularly amid the rise of protocols like Layer 2 solutions and Liquid Staking in the crypto arena.
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What’s going on with Polkadot revenues?
Nevertheless, amid these trials, Polkadot exhibited a noteworthy surge in revenue variation. Recent data sourced from Polkadot Insider unveils a remarkable 25.6% upswing in revenue variation for Polkadot within the past week.
The revenue variance for a period is the difference between budgeted and actual revenue. A favorable revenue variance occurs when actual revenues exceed budgeted revenues, while the opposite is true for an unfavorable variance.
This positive shift in revenue variation could hold significant implications for the Polkadot protocol, potentially bolstering its standing and attractiveness to users and investors.
However, the protocol witnessed fluctuating levels of activity. On 14 September, the Polkadot network observed a substantial spike in the number of active addresses, but this surge was followed by a subsequent decline in activity.
In contrast, the influx of new addresses signing up for the Polkadot network remained relatively subdued. This suggested that while existing users may be actively engaging with the network, the influx of newcomers was limited.
Furthermore, the development activity on the Polkadot network tapered off over the past month. The number of code commits and core developers decreased by 14.9% and 17.9%, respectively.
This decline in development activity could raise concerns about the network’s ability to innovate and adapt.
Bears continue to haunt DOT
When examining price movement, Polkadot faced a bearish trend over the last month. DOT’s price dwindled from $6.69 to $4.137 during this period. Alongside the price decline, the trading volume for the token also experienced a reduction.
The diminishing trading volume is a significant factor to consider as it can impact the liquidity and overall market sentiment surrounding Polkadot.
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Lower volumes can lead to higher price volatility, potentially causing unease among investors.
Speaking of volatility, DOT encountered an increase in price fluctuations, which could signify uncertainty and speculative trading. This heightened volatility may influence investors’ confidence in the token and its long-term viability.