Polkadot’s Rollercoaster Week: A Setback below $7 and Declining Developer Activity
As a Polkadot (DOT) investor, I’ve noticed some promising signs of recovery at the beginning of the week. However, my hopes were dashed when the price fell back below $7, failing to break through the crucial resistance level that would have secured further gains.
As a crypto investor, I’ve noticed that Polkadot ($DOT) has struggled to break through the 20-day Simple Moving Average (SMA), which serves as a significant resistance level for me. Consequently, the price is once again trading below $7. Early this week, there were promising signs of recovery when the coin managed to trade above that mark following a successful weekend. However, recent developments have cast a shadow over this optimistic outlook. Specifically, I’ve observed a decrease in developer activity, which could contribute to the ongoing downward trend for Polkadot.
$DOT Looses Partial Recovery
Last week, Polkadot ($DOT) indicated signs of revival, reaching a trading price of $7.11 following a productive weekend. However, on Monday, $DOT encountered substantial resistance and dipped back into negative territory. The bullish trend resumed during Tuesday’s trading session, with buyers regaining control late on Monday and causing a 4.62% surge, resulting in a closing price of $7.47. Unfortunately, sellers seized the reins for the following two days, dragging the price below $7.00 once more.
The chart below shows $DOT’s continued oscillation between $6 and $7.
Polkadot Developer Activity Declines
As an analyst, I recently examined the latest developer activity data from Coin98Analytics. Notably, Polkadot’s position on the list took a hit this week with only 827 developers recorded. Previously, the blockchain had seen over 5,000 commits in a single week.
Weekly Commits & Active Devs on Popular Blockchain Platforms
— Coin98 Analytics (@Coin98Analytics) April 26, 2024
As an analyst, I’ve observed that while Polkadot’s data volume is not insignificant, it pales in comparison to other blockchains like Ethereum and BNB Chain. For instance, Ethereum has seen approximately 2,000 weekly developers making over 19,000 commits. In contrast, BNB Chain records more than 6,000 weekly commits from its developer community.
In Other News
As a crypto investor, I’ve noticed some exciting developments this week. For instance, Velocity Labs unveiled a new fiat-to-crypto onramp in collaboration with Ramp Network. Through the integration of the Asset Hub, this onramp now enables Ramp to cater to any parachain within the Polkadot ecosystem. That means easier access for investors like us to purchase crypto using traditional currency and invest in projects built on the Polkadot platform.
In simpler terms, Asset Hub functions as the central hub for managing and utilizing assets within the expansive Polkadot network. Its primary role includes overseeing the generation and administration of assets across this ecosystem.
At the time of writing, Polkadot traded at $6.85, down 3.49% in the past seven days.
Read More
Sorry. No data so far.
2024-04-28 19:03