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Why Polkadot investors have a reason to celebrate

The network’s key metrics and price charts showed that there were reasons for investors to rejoice.

Published

1 year ago

on

  • Polkadot’s fees and revenue registered a slight decline in the last 90 days. 
  • DOT’s price increased by 2% in the last 24 hours, and indicators were bullish.

Polkadot [DOT] has been actively launching new projects on-chain, which helps in adding value to the network. A look at DOT’s key metrics suggested that the launches were now impacting the network positively as well. 

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Polkadot’s popularity is not helping on ground

Polkadot Insider, a popular Twitter handle that posts updates related to the ecosystem, mentioned in a 6 June tweet that the blockchain was quickly becoming one of the most popular blockchain platforms for launching new projects.

As per the tweet, Acala Network, Astar Network, and Manta Network were the top parachains in the Polkadot ecosystem based on the number of investors they’ve attracted. 

Though these numbers looked encouraging, the reality was different. Token Terminal’s data revealed that

DOT’s fees declined slightly over the last 90 days. A similar trend was also seen in terms of the blockchain’s revenue. 

Source: Token Terminal

A quick look at Polkadot’s weekly stats

Another Polkadot Insider tweet highlighted the blockchain’s network stats from the previous week. As per the tweet, DOT’s daily active users and transactions remained pretty stable, which looked encouraging. 

However, DOT’s daily codes commit registered a decline. A similar drop was also noted on its development activity chart over the last seven days. This was surprising as Polkadot was known for its development activity.

Source: Santiment

DOT’s price turns green

After continuous price declines, DOT investors finally had reasons to celebrate as its daily chart turned green. As per CoinMarketCap, DOT’s price increased by more than 2% in the last 24 hours.

At the time of writing, it was trading at $5.17 with a market capitalization of over $6 billion. As per Santiment, DOT’s demand in the futures market also increased, as evident from its green funding rate.

Source: Santiment

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

Will the rally continue?

DOT’s MACD displayed a bullish crossover, which is a development in the buyers’ favor. Its Money Flow Index (MFI) also registered an uptick, further increasing the chances of a continued uptrend. Polkadot’s Relative Strength Index (RSI) looked concerning, though, as it went below the neutral zone.

Source: TradingView

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