User Engagement In Polkadot Rises, Will DOT Stop Consolidating Soon?

Recent developments in Polkadot have achieved a significant milestone by implementing Asynchronous Backing, which enhances blockspace allocation and overall network performance.

Meanwhile, Asynchronous Backing optimizes the validation of parachain blocks by Polkadot’s Relay Chain, resulting in a two-fold acceleration in block production and a 3x-5x increase in extrinsic per block. Moreover, it also leads to an increase in block space availability and heightened utilization of para-chain blocks.

Tweet by Polkadot | By X Platform

User Engagement Looks Healthy

The engagement of users in Polkadot has increased to record levels, with the active addresses hitting record highs for two consecutive months. According to DotLake’s data, the network had approximately 650K active addresses, as of the end of April 2024, this surpassed its previous high of 605,779 (March end).

Dot Lake data of NUMBER OF ACCOUNTS ACTIVE | By paritytech.io

Above all, Polkadot considers this milestone as a significant uptick in activity, by marking a new all-time high for the monthly active accounts since the launch of parachains from back in 2022.

Tweet By Polkadot insider | By X Platform

Furthermore, the increase in active addresses is primarily observed due to Moonbeam. At the time of writing, Moonbeam accounted for over 60% of these addresses, totaling 397,515, while Polkadot had only 136,612 addresses.

According to data from Polkadot Insider on X, Moonbeam had the highest user acquisition among Polkadot’s parachains in April last week. 

However, the total number of unique addresses on Polkadot decreased slightly, dropping from 6.962 million in March to 6.837 million at the end of April.

Dot Lake data of NUMBER OF Unique Accounts | By paritytech.io

Polkadot Consolidates, What Can We Expect Next?

At the time of writing, Polkadot price (DOT) was trading at $7.10; it has remained relatively stable in recent days, and it was in a consolidation. Looking at the price chart below, the crypto has been trading within the range of its support at $6.80 level and resistance level at $7.50 for the past few sessions.

As of now, the price has not demonstrated any significant gains or losses on the daily chart. Now, whether the asset’s price moves up or down in the coming session would depend on whether DOT breaks above the resistance or below the support levels. 

If the market remains on the bullish side, then the DOT price could test its nearby resistance at $7.50 and potentially reach $8.0 if it surpasses this level. However, there is currently little movement in the DOT price. Conversely, if the market turns bearish, DOT could drop towards its support at $6.80 or even lower to $6.00.

At present, the MACD is bullish, suggesting that the DOT price could continue its upward trend as the histogram is growing at 0.0833. Similarly, the RSI is at 47.35 and is supported by the smoothed line of 14-SMA.

Summary

The recent developments in Polkadot have achieved a significant milestone by implementing Asynchronous Backing, which enhances blockspace allocation and overall network performance. User engagement in Polkadot has increased to record levels with Moonbeam accounting for over 60% of active addresses. 

However, the total number of unique addresses on Polkadot decreased slightly, dropping from 6.962 million in March to 6.837 million at the end of April. The Polkadot price has remained relatively stable in recent days, trading within the range of its support at $6.80 level and resistance level at $7.50 for the past few sessions. The MACD is bullish, suggesting that the DOT price could continue its upward trend.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.