Polkadot’s Development Activity Drops, But Network Activity Surges: Is a Price Reversal Coming for DOT?
The recent drop in development activity for Polkadot [DOT] has raised concerns among investors, but the network’s activity has surged, hinting at a potential trend reversal for the token’s price action. Despite being overtaken by other blockchains like Ethereum [ETH] and BNB Chain in terms of development activity, DOT’s network activity saw a significant spike last week.
According to data from Coin98 Analytics and Santiment, Polkadot witnessed a decrease in weekly developers and code commits, falling behind other blockchains such as ETH, BNB Chain, Polygon [MATIC], and Optimism [OP]. However, the blockchain’s daily active addresses and transaction count experienced a notable increase, indicating strong network activity.
On the price front, Polkadot faced bearish pressure as its value dipped by over 1.5% in the last seven days. The token’s funding rate also rose, signaling a bearish trend, while open interest declined, suggesting a potential shift in market direction. Despite these challenges, DOT’s Money Flow Index (MFI) showed a sharp uptick, hinting at a possible price hike, and a breakout above the 20-day Simple Moving Average (SMA) could trigger a fresh bull run for the altcoin.
As investors closely monitor Polkadot’s development and network activity, all eyes are on whether the token can overcome its recent challenges and regain bullish momentum on the charts.
