Polkadot: How December turned out to be the best of 2023
- User activity on Polkadot is at its highest since the year began.
- Monthly network fees and revenue have also increased significantly this month.
Polkadot [DOT] has witnessed a surge in user activity, with the daily count of new addresses reaching a year-to-date high, according to The Block data dashboard.
On Christmas Day, the daily count of new addresses created on the Polkadot network totaled 7,120, marking its highest single-day count since the year began.
The chain’s new address count observed on a seven-day moving average showed that Polkadot has seen a surge in new demand since the month began.
Data retrieved from The Block showed that the number of new addresses created on Polkadot daily has grown by 258% since 1st December. As of 26th December, 6,890 new addresses were created on the chain.
Due to this, the daily number of transactions on Polkadot has risen to its highest level since January.
For most of the year, the daily transactions count on Polkadot had been below 10,000. However, when the general market rally began in October, activity increased on Pllkadot, pushing up its number of daily transactions.
Since the beginning of December, this has increased by over 21,000%. For context, as of 1st December, Polkadot’s daily transactions totaled 11,190. It closed on 26th December with a transaction count of 2.45 million.
Network fees and revenue at their highest levels
As a result of the uptick in user activity this month, network fees and the revenue derived from the same have also skyrocketed, data from Token Terminal revealed.
So far this month, total transaction fees on Polkadot have totaled $2.7 million. Protocol revenue generated from the same sits at $2.2 million. This marks the first time this year that Polkadot’s monthly fees and revenue have surpassed seven figures.
Any impact on the coin’s price?
The value of Polkadot’s native coin DOT has risen by over 50% in the last 30 days, data from CoinMarketCap showed. At press time, the coin exchanged hands at $0.5945.
Read Polkadot’s DOT] Price Prediction 2023-24
However, AMBCrypto found that while DOT’s price rallied, its Chaikin Money Flow (CMF) assessed on a 24-hour chart trended downward, creating a bearish divergence.
This is referred to as a bearish divergence because it signals an impending downward price correction. A CMF sell signal presents itself when an asset’s price climbs while its CMF value diverges by falling.