What Polkadot’s latest proposal means for the network
- Like DOT’s price, its TVL also went down over the last week.
- Metrics were bearish, but a few market indicators suggested otherwise.
Polkadot [DOT] recently submitted a proposal for its PolkaWorld regarding its operation costs for the next three months. This also marks PolkaWorld’s second treasury proposal since Polkadot launched OpenGov. Apart from that, Polkadot Insider also posted the blockchain’s weekly recap, highlighting DOT’s performance on several grounds.
How much are 1,10,100 DOTs worth today
A look into the new proposal
For starters, PolkaWorld is the Polkadot community in China and has gathered more than 50,000 followers. PolkaWorld has so far produced eight motions and one OpenGov referendum. The latest proposal is a follow-up proposal seeking to cover the next three months of ops and maintenance costs.
The motive behind this proposal is to further promote and support community education for the Polkadot ecosystem in Asia. At the time of writing, the voting was going on and more than 60% of the voters cast their vote against the proposal.
? #116 PolkaWorld Ops & Maintenance proposal: 2023.9 – 2023.11 ?
? PolkaWorld, Founded in June 2019, @polkaworld_org has been around for four years now, is the Polkadot community in China and has gathered more than 50,000 followers
? Recently, a proposal requested by… pic.twitter.com/KZ9T6xIbRE
— Polkadot Insider (@PolkadotInsider) August 20, 2023
Polkadot had a rough week
While the voting was going on, Polkadot Insider, a popular X account that posts updates related to the DOT ecosystem, tweeted that blockchain’s weekly report. The report mentioned that the blockchain processed an average of 6900 transactions last week and had 3600 active users on average.
POLKADOT WEEKLY RECAP
?Another weekly go through & however, @Polkadot is still on the way to growth
✅AVG Developers: 172
✅AVG Transactions: > 6900
✅AVG Users ~3600
— Polkadot Insider (@PolkadotInsider) August 21, 2023
Not only that, but the daily codes committed also remained relatively high. However, DeFiLlama’s data revealed that Polkadot took a blow in its DeFi space as its TVL went under the 4100 thousand mark last week.
Not only that, but DOT’s price also remained under bears’ influence, thanks to the market condition. At press time, DOT was trading at $4.42 with a market capitalization of over $5 billion. The price drop caused DOT’s 1-week price volatility to rise. The token’s trading volume also declined last week, reflecting less interest from investors in trading the token.
Additionally, DOT’s demand in the derivatives market fell, as evident from its red Binance funding rate. However, Polkadot’s development activity continued to remain high last week.
Read Polkadot’s [DOT] Price Prediction 2023-24
Like the metrics, DOT’s market indicators were also bearish. For instance, the Exponential Moving Average (EMA) Ribbon supported the sellers as the 20-day EMA was well below the 55-day EMA. As per the Bollinger Bands, DOT’s price was in a high volatility zone, which suggested that the price could move with high volatility in either direction.
Nonetheless, the good news was that its Money Flow Index (MFI) was in an oversold zone, which can increase buying pressure. Another bullish indicator was the Chaikin Money Flow (CMF), which registered an uptick.