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Polkadot ecosystem in good health, but DOT’s state looks concerning, here’s why 

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Polkadot ecosystem in good health, but DOT’s state looks concerning, here's why 
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  • Polkadot’s number of stakers increase but its TVL declined. 
  • In fact, Polkadot’s NFT ecosystem witnessed growth, however, trouble might be ahead for DOT.

Polkadot Insider revealed that the number of stakers in the Polkadot [DOT] ecosystem has been on a rise since the beginning of this year.

As per the tweet, Polkadot’s total staked tokens reached 613 million.

DeFiLlama’s data, on the other hand, told a different story- according to its chart, Polkadot’s Total Value Locked (TVL) registered a decline over the last few days in spite of an increase in the number of stakers.

Meanwhile, the network has been partnering and integrating with others to expand its capabilities. The latest one was the integration of DeFi with Moonbeam network.

Polkadot Insider mentioned that this cooperation will bring asset tracking, DeFi yield aggregation, and its security toolbox to network users.

How much are 1,10,100 DOTs worth today?

Polkadot ecosystem was doing well

Despite the decline in TVL, Polkadot seemed to have been doing fairly well in other spaces. For instance, Polkadot’s NFT space got some traction last week as Attarius announced that it added Moonbeam Network and Moonriver to its Multichain NFT API functionality.

Besides, Santiment’s chart pointed out that Polkadot’s NFT space witnessed growth last week as its total NFT trade count and trade volume in USD went up in the last seven days. 

Source: Santiment

Moreover, another positive signal for Polkadot was that its revenue registered an uptick in the last 30 days, with the highest figure of nearly $2,8000 on 24 February 2023.

As its revenue increased, DOT’s fees also went up during the same period. LunarCrush’s data indicated that Polkadot’s social engagement went up by 20% last week, reflecting its popularity in the crypto space. 

Source: Token Terminal

Read Polkadot’s [DOT] Price Prediction 2023-24

However, DOT’s state was concerning

While the Polkadot ecosystem appeared to be in good health, DOT’s state raised some concerns. According to CoinMarketCap, DOT’s price declined by more than 10% in the last seven days.

At press time, DOT was trading at $6.60 with a market capitalization of over $7.6 billion. However, things might get worse in the coming weeks, as quite a few metrics suggest a further price dip.

Consider this- DOT’s development activity decreased over the last week, which was a negative signal. Its demand in the derivatives market also declined in the last few days as its DyDx funding rate went down.

On top of that, as per LunarCrush, bearish sentiment around DOT registered a massive uptick of over 290% in the last seven days, which might bring trouble for DOT holders.

Source: Santiment

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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