Altcoin

How Polkadot Parachains can help DOT’s trajectory

Polkadot will release a list of its top five influential parachains in the next week. However, despite this development, DOT remains under bears’ influence. 

Published

1 year ago

on

  • Parallel, Acala, and Moonbeam were the top three Polkadot parachains in terms of TVL. 
  • DOT’s price action was bearish, but a few indicators suggested a trend reversal. 

In about a week, Polkadot [DOT] will introduce its top five most influential parachains. Ahead of the announcement, the blockchain also revealed the top parachains as per LunarCrush over the last seven days. 

Read Polkadot’s [DOT] Price Prediction

2023-24

Alongside this, DOT also became the third blockchain with the highest movement in AltRank, which is generally considered to be a bullish signal.

A look at Polkadot’s DeFi

Polkadot Insider, a popular X (formerly Twitter) account, posted a tweet revealing the top influential parachains over the last seven days. The list included chains like Moonbeam, Parallel Finance, Bifrost Finance, T3rn, and Litentry.

As per DeFiLlama’s data, Parallel Finance has the largest share of TVL at over $134 million, accounting for over 34% among the parachains. Moonbeam, which was the most influential parachain on Polkadot, had a TVL of over $51 million, making it the third largest parachain.

It was interesting to note that Acala Network, which did not make it to the list shared by Polkadot Insider, was the second largest parachain as its TVL stood at more than $116 million.

Source: DeFiLlama

While parachains continued to grow, Polkadot’s performance in the DeFi space dropped. This was evident from the sink in its TVL since the beginning of Q3 2023. At the time of writing, Polkadot’s TVL stood at $79,686.

DOT to turn bullish?

While this happened, Polkadot ranked third on the list of blockchains by AltRank in the last 24 hours. This development can help DOT’s

price, which has been suffering.

As per CoinMarketCap, DOT was down by more than 6% in the last seven days. At the time of writing, it was trading at $3.76 with a market capitalization of over $4.6 billion.

However, the improvement in AltRank couldn’t change market sentiment around DOT. According to LunarCrush, bearish sentiment around DOT skyrocketed by 300% in just the last 24 hours. 

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A look at DOT’s daily chart shed light on what might be expected from the token. Though market sentiment was negative, DOT’s MACD displayed a possibility of a bullish crossover.

Additionally, Polkadot’s Chaikin Money Flow (CMF) and Money Flow Index (MFI) both registered upticks, which could play a significant role in increasing the token’s price in the days to follow.

Source: TradingView

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