DOT fails to impress despite some noteworthy developments from Polkadot
Polkadot [DOT] launched a new DeFi product called vDOT on 13 September. vDot is a yield-bearing DOT derivative that aims at maximizing DeFi earning strategies in the Polkadot ecosystem. vDOT will be the third member in Polkadot’s DeFi network, following the KSM and the vToken token series.
Furthermore, it supposedly has the same features as vToken, with more core advantages. These include multi-scenario staking benefits, and flexible redemption. However, has DOT reacted to this news in a way that benefits all?
The metric show
Although Polkadot has been making big strides in the development of new products, the price has been on a constant decline. DOT depreciated by 5.42% in the last seven days.
On the brighter side, Polkadot saw a massive spike in its social media activity. Its social mentions surged by a whopping 50.5% alongside an increase of 20.3% in its social engagements as well.
However, there has been a sharp decline in its market cap, as can be seen from the image below. DOT’s circulating market cap has gone down by 17.32% in the past month.
DOT’s volume has also taken a hit and has gone down by an alarming 73.33% over the past week. Additionally, DOT lost much of its market cap dominance, which dropped by 2.58% since the last week.
Although the on-chain metrics haven’t been showing a positive outlook for DOT, the blockchain has kept adding a healthy amount of new users everyday.
However, this development hasn’t had much of an effect on the price of the token. DOT has been trading at $7.12 at the moment, with the price depreciating by 4.62% in the last seven days.
DOT’s price trajectory
The price has been trading within the $0.07 resistance and $0.06 support for the past two weeks. The support has been tested multiple times in the past few days indicating that there could be a strong movement in either direction.
The Relative Strength Index (RSI) at 45.96 however depicted that the momentum is at the side of the sellers. The Chaikin Money Flow (CMF) at 0.01 indicate that the money flow is not on the buyer’s or the seller’s side at the moment.
Polkadot’s future appears uncertain at the present, hence readers are urged to examine Polkadot’s updates and other metrics to gain a better idea of Polkadot’s fate.