Polkadot’s [DOT] Price Declining Despite Increasing Developer Activity

Polkadot’s [DOT] Price Declining Despite Increasing Developer Activity

• Polkadot’s trading volume was declining at press time, while metrics and market indicators looked bearish.
• DOT’s development activity registered a decline, while its Binance funding rate remained low.
• DOT’s price chart reflected bearish movements, with its RSI heading below the neutral mark.

Overview of Polkadot’s Performance

Polkadot’s trading volume was declining at press time, and metrics and market indicators looked bearish. Token Terminal revealed that Polkadot’s [DOT] trading volume was on a constant decline, which was a negative signal. However, in terms of the number of developers, DOT has consistently outperformed its competition since its inception.

Analysis of Active Core Developers & Trading Volume

Active core developers on @Polkadot & DOT trading volume were analyzed by Token Terminal. The figures showed an increase in the number of developers since its launch but the overall health of the blockchain is uncertain due to the decline in trading volume over recent months.

Weekly Report by Polkadot Insider

Polkadot Insider posted a weekly report on 13 February which highlighted several new statistics about the network. It revealed that DOT’s revenue increased last week despite lower trading volumes and that it had exceeded $598 million in staking value with an inflation rate at 70.17%.

Metrics Look Concerning

Over the past week, DOT’s development activity declined significantly as did its social media popularity; furthermore, NFT trade counts decreased and Binance funding rates remained low throughout this period.

Conclusion

DOT’s performance in terms of price also reflected bearish movements; according to CoinMarketCap, it reduced by over 7% within seven days and at press time it was trading at $6.11 with a market capitalization exceeding $7 billion dollars. Further declines are possible in the near future due to technical indicators such as Relative Strength Index (RSI) going below the neutral mark which favors sellers more than buyers