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- Polkadot, as one of the top ten cryptocurrencies, sees a lot of activity on its network
- Polkadot has been particularly active in terms of network building recently. The continuing parachain auctions simply serve to emphasize this point
- This has prompted many investors, including many whales, to sell their DOT in order to mitigate their losses
Polkadot, as one of the top ten cryptocurrencies, sees a lot of activity on its network. In reality, it has one of the most active development operations among the top ten currencies. However, this does not make it immune to market fluctuations, and after today, it appears that the altcoin requires the king currency more than ever. Polkadot, like the rest of the market, has fallen, with a 10% decrease as of press time. The recovery of a coin is usually expected based on its network performance. This is not the case with this cryptocurrency, though.
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Polkadot has been particularly active in terms of network building recently. The continuing parachain auctions simply serve to emphasize this point. The Moonbeam network just won the second auction, raising over 35 million DOT. On Github, too, the network has seen a steady increase in development activity, with an average of over 28 contributors working every day. However, investors and the Department of Transportation are following Bitcoin’s lead. Because of the high link between the two assets, DOT is compelled to follow BTC’s price movement, which has caused the altcoin to lose 33% in the previous two weeks.
This has prompted many investors, including many whales, to sell their DOT in order to mitigate their losses. Investors are abandoning the derivatives market as over $13 million worth of long contracts were liquidated today. However, investors continue to be positive about Polkadot because of its popularity as seen by social traffic, as well as the altcoin’s superior returns to Bitcoin.
Looking at the price indications right now, it appears that the negative trend is just beginning, and it may be some time before DOT fully recovers. It won’t be long until it happens, thanks to Polkadot’s strong network and helpful investors. However, how quickly it rebounds will be determined by how quickly Bitcoin recovers.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
