Polkadot second to Ethereum: What it means in the bull market
- Polkadot’s revenue and fees remained stable last month, and TVL rose.
- Metrics and market indicators were bullish on the token.
Polkadot [DOT] outperformed the rest of the crypto market as it was only behind Ethereum [ETH] at press time, reflecting higher adoption. Not only that, but the blockchain’s key network stats also remained stable. While this happened, DOT’s price gained upward momentum, thanks to the bullish market.
Read Polkadot’s [DOT] Price Prediction 2023-24
However, apart from its network activity and bullish market, quite a few other metrics were also at play that could have served their roles in supporting the uptrend.
Polkadot’s network activity is high
On 13 July, Polkadot Insider announced that Polkadot had outperformed several cryptos, and was only behind Ethereum in terms of daily active addresses in the last 30 days. While Ethereum had 350,000 daily active addresses, DOT had over 172,000.
⛏️ Let’s explore the Top blockchains by Active Addresses in the past 30 days
?A high Active Addresses indicates a thriving and expanding blockchain ecosystem, highlighting its potential for long-term success and adoption
— Polkadot Insider (@PolkadotInsider) July 13, 2023
In addition, Token Terminal’s data revealed that the blockchain’s revenue and fees remained stable in the last month. In fact, the graph spiked on 3 July 2023. The blockchain’s network value was also increasing as its TVL rose, as pointed out by DeFiLlama.
While these developments happened, Polkadot’s price action turned positive, thanks to the on-going bullish market. As per CoinMarketCap, DOT was up by more than 6% and 9% in the last 24 hours and week, respectively.
At the time of writing, it was trading at $5.63 with a market capitalization of over $6 billion, making it the 13th largest crypto. A look at DOT’s metrics gave an understanding of what caused this surge.
While DOT’s price declined, its Open Interest also went down. Likewise, its price uptrend was accompanied by a hike in volume. Additionally, DOT’s 1-week price volatility was high, supporting the chances of a continued uptrend.
Realistic or not, here’s DOT’s market cap in BTC;s terms
Should DOT investors be cautious?
Polkadot’s uptrend might continue longer as the Exponential Moving Average (EMA) Ribbon displayed a bullish crossover. Not only that, but its Relative Strength Index (RSI) was also relatively high, suggesting a continued northbound movement.
Nonetheless, though DOT’s Money Flow Index (MFI) was high, it did move down slightly. This can cause trouble and prevent the token’s price from going up further.