Connect with us
Active Currencies 12850
Market Cap $2,086,334,085,113.80
Bitcoin Share 48.79%
24h Market Cap Change $1.10

Why hike in Polkadot staking has not helped DOT’s prices 

2min Read

Polkadot’s staking ecosystem witnesses growth, but DOT continues to shed value. 

Why the rise in Polkadot staking has not helped DOT's prices 

Share this article



  • The total number of staked DOT tokens increased over the last few days. 
  • DOT was down by 16%, but a few indicators looked bullish. 

As we enter the second week of 2024, Polkadot [DOT] has some positive news related to its staking ecosystem. Notably, the ecosystem witnessed a rise in the amount of DOT staked.

To better understand how Polkadot’s staking ecosystem was doing, AMBCrypto planned to take a closer look at the blockchain’s state.

A closer look at Polkadot staking

Tony, a popular crypto analyst, recently posted a tweet highlighting the fact that Polkadot was increasing the amount of DOT blocked in staking.

As of the 7th of January, DOT had a total issuance of over 1.3 billion, out of which more than 52% were blocked in staking.

To better understand Polkadot’s stalking ecosystem, AMBCrypto took a look at Staking Rewards’ data. We found that the number of DOT tokens staked has gained upward momentum in the recent past.


At press time, the total number of DOT staked was 719.81 million, with a reward rate of over 14.8%. Polkadot had a total of nearly 107k staking wallets, with a stalking market capitalization of more than $4.8 billion.

Source: Staking Rewards

A possible reason behind the uptick in staking metrics could be investors’ confidence in DOT, as they hoped to earn more rewards over the months to follow. Therefore, it looked important to check market sentiment around DOT.

AMBCrypto’s analysis of Santiment’s data revealed that the token’s Social Volume remained relatively high throughout the last week. However, bearish sentiment around DOT was dominant, as evident from its negative Weighted Sentiment graph.

Source: Santiment

DOT is bleeding

The reason behind the bearish sentiment around DOT can be attributed to its negative price action. According to CoinMarketCap, DOT was down by more than 16% in the last seven days.

At the time of writing, DOT was trading at $6.80 with a market cap of over $8.6 billion.

Our look at Polkadot’s liquidation levels revealed that the token witnessed a massive sell-off near the $8.8 mark. Soon after that, another sell-off spree began near $8.6, causing a price correction.

Since then, several more zones of high liquidation were noted, which pushed the token’s price further down.

Source: Hyblock Capital


Read Polkadot’s [DOT] Price Prediction 2024-25


Though the aforementioned data looked concerning, things might soon turn out to be in investors’ favor. AMBCrypto’s look at Polkadot’s daily chart pointed out that its Chaikin Money Flow (CMF) registered a slight uptick.

Additionally, its Money Flow Index (MFI) was just about to enter the oversold zone. This could exert buying pressure on DOT, in turn pushing its price up.

Source: TradingView


Share

Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.