Polkadot (DOT) Network Activity Drops to 2024 Lows: Implications for Price

2024-7-4 13:30

The past month has seen a significant drop in user demand for Polkadot, the leading Layer-0 blockchain. Activity on its Relay Chain and parachains plummeted in June, reaching their lowest levels since the start of the year.

This, combined with the broader market downturn, has caused the value of its native coin, DOT, to drop by nearly 15% over the past 30 days.

Polkadot Users Shun the Network

Polkadot witnessed a significant decline in network activity across its Relay Chain and parachains in June. 

The Relay Chain is the central chain of the Polkadot network, handling the coordination and security of the blockchain. Its parachains are individual blockchains that run parallel and are connected to the Relay Chain. They leverage the Relay Chain’s security and interoperability while operating independently.

During the 30-day period under review, 192,330 unique addresses were active on the Polkadot Relay Chain, either as senders or receivers. 

This marked a 15% month-over-month (MoM) decline from the 225,870 recorded in active addresses in May. Assessed on a year-to-date (YTD) basis, this represented a 37% fall. 

Read More: What Is Polkadot (DOT)?

Polkadot Monthly Active Addresses. Source: The Block

New demand for the network also plummeted. In June, the number of unique addresses that appeared for the first time in a transfer on the Polkadot Relay Chain was 34,370, a 22% MoM decline. 

A similar downtrend was observed across Polkadot’s parachains, with total active and new address counts falling by 21% and 25%, respectively, in June.

Interestingly, despite the fall in user count, Polkadot’s parachains recorded more coin transfers in June than they did in May.

Polkadot Monthly Transfers (Parachain). Source: The Block

During the 30-day period, monthly transfers across the parachains amounted to 4.3 million, a 10% surge from the 3.9 million transfers registered in May. 

DOT Price Prediction: Further Declines Lie Ahead

As of this writing, DOT exchanged hands at $5.87. Due to Polkadot’s network activity decline and the general market downturn, the altcoin’s value has dipped by 17% in the past 30 days.

With a sustained decline in DOT’s demand, it might witness a further price drop. According to its Relative Strength Index (RSI), selling activity outweighs accumulation among market participants. At press time, the indicator’s value is 42.32 and declining. 

This indicator measures an asset’s oversold and overbought market conditions. At 42.32, DOT’s RSI signals that market participants favored coin distribution.

If selling pressure continues to mount, the altcoin’s value might fall to $5.36.

Read More: Polkadot (DOT) Price Prediction 2024/2025/2030

Polkadot Analysis. Source: TradingView

However, if the demand for DOT climbs, it may push its price to $5.92.

The post Polkadot (DOT) Network Activity Drops to 2024 Lows: Implications for Price appeared first on BeInCrypto.

origin »

Polkadot [IOU] (DOT) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.28 %, 7d: -19.29 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 DOT

polkadot activity dot implications price lows 2024

polkadot activity → Результатов: 122


AdEx Price Gains 20% As Market Plunges, Are Bulls Behind The Pump?

The price of AdEx (ADX) explodes with a double-digit gain against Tether (USDT) as bulls push the price to a higher region. Despite the market downtrend in recent days with Bitcoin (BTC) and Ethereum (ETH) all (Data from Binance) Related Reading: Polkadot Dev’t Activity Up In Last 7 Days, Despite Steady Drop In DOT Price AdEx (ADX) Price Analysis On The Weekly Chart  From the chart, the price of ADX, after seeing a major run to a high of $1.

2022-8-28 23:56


Фото:

Polkadot

As cryptocurrency becomes more popular across the globe, it is important that the crypto industry is as accommodating to new users and put systems in place to facilitate increased activity. One of these is the ability to buy crypto with greater ease, especially with fiat currencies which are chiefly accepted. In light of this, Polkadot […]

2021-3-20 18:01