Will Binance’s support of Polkadot prove fruitful?
- Binance’s support of Polkadot’s USDT led to a 125% surge in volume on the Statemint parachain.
- Despite declining activity and sentiment, Polkadot saw growth in stakers and development activity.
Polkadot [DOT], despite its vast array of parachains, hasn’t been able to compete with other cryptocurrencies in various areas. However, Binance’s [BNB] recent support of Polkadot’s USDT could help turn things around for the protocol.
Read Polkadot’s [DOT] Price Prediction 2023-2024
Some positive developments
Binance’s support of Polkadot’s USDT has yielded positive results for the protocol, as indicated by recent on-chain data. The volume of USDT on Polkadot’s parachain Statemint experienced an impressive surge of 125% in just one day, following the news of Binance’s integration.
1/ On-chain data reveals the total volume of @Tether_to (USDT) on the system parachain Statemint has surged by 125% in a day.
— Polkadot (@Polkadot) May 26, 2023
However, despite this encouraging development, Polkadot has faced challenges in terms of daily activity and revenue. Data from Token Terminal revealed a significant 55% decline in daily active users on the Polkadot network over the past 30 days. The revenue generated by Polkadot also experienced a notable decrease of 24.9% during the same period.
The social factor
The social landscape has not been favorable for Polkadot either. Social mentions related to Polkadot declined by 39.8% in the past month, highlighting a lack of growth and diminishing social dominance for the protocol.
Furthermore, sentiment around Polkadot has taken a negative turn. According to Santiment’s data, the weighted sentiment surrounding Polkadot has experienced a significant decline over the past month, indicating increased skepticism about its future prospects.
Despite these challenges, stakers continue to show interest in Polkadot. Data from Staking Rewards indicates that the number of stakers on the Polkadot network has grown by 4.23% in the last month, demonstrating ongoing engagement and participation in the staking process.
On the DOT
While Polkadot’s native token, DOT, has seen a decline in both price and volume, there is promising news on the development front. Development activity within the Polkadot network has witnessed a significant surge, suggesting that new upgrades and updates may be on the horizon.
Realistic or not, here’s DOT market cap in BTC’s terms
These upcoming enhancements have the potential to attract more users to the Polkadot protocol and the DOT token, fostering renewed interest and utilization within the ecosystem.
Despite recent challenges, Binance’s support of Polkadot’s USDT integration offers a glimmer of hope for the protocol, as it seeks to strengthen its position and compete more effectively within the cryptocurrency landscape.