Polkadot: Despite several updates in the past week, why did DOT fail to impress

February 1, 2023 Brazen Crypto Team Polkadot 0

  • Polkadot Ecosystem Weekly digest revealed major updates that happened in the network.
  • Performance on the metrics and price fronts was not as promising. 

Polkadot [DOT] published the latest edition of Polkadot Ecosystem Weekly Digest on 30 January, which highlighted all the notable developments that took place on its ecosystem over the last seven days.

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Polkadot ecosystem remained happening 

One of the biggest announcements revealed that referendum 100 on Polkadot had begun, which proposed the pre-checking for runtime upgrades on parachains. The proposal attempted to enable runtime upgrade pre-checking on parachains. Additionally, Phala StakePool V2 and Vault on-chain upgrades were enabled last week.

Apart from this, Polkadot Insider revealed that in 2022, 544 projects and applications joined the Dotsama ecosystem, representing 28 subcategories, out of which, most were in the crypto space. This update reflected how far Polkadot has come in terms of adoption. 

DOT’s performance on the metrics front 

As per CoinMarketCap, DOT did not register promising gains over the last week, as its chart was red. At press time, DOT’s price had declined by over 4% in the last 24 hours and was trading at $6.29 with a market capitalization of over $7.24 billion. Over the last week, DOT’s Binance funding rate declined quite a few times, suggesting less demand from the futures market.

However, things changed in the last few days as the funding rate went up. Though DOT has always been in the news for its development activity, last week the scenario was different as the graph declined.

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This was quite surprising, as according to Santiment, Polkadot topped the list of blockchains in terms of development activity over the past 30 days.

Apart from the development activity, Polkadot’s popularity also took a blow, which was evident from LunarCrush’s data. DOT’s social mentions and market dominance declined last week, which suggested that its presence and popularity in the market went down.