- Polkadot’s development activity showed a promising future but that couldn’t be considered enough for DOT’s growth
- Sentiment for DOT witnessed a decline along with social engagements and mentions
Polkadot [DOT] has been outperforming other cryptocurrencies in terms of development activity, according to recent data. However, despite this, the revenue generated by Polkadot has been declining.
According to Token Terminal, Polkadot’s revenue dropped by 27.8% in the last 24 hours. The chain cumulatively generated $181,000 in terms of revenue at the time of writing.
Source: Santiment
The voice of the people
This decline in revenue may be a sign that development activity alone is not enough for Polkadot to achieve growth. Other indicators, such as the declining number of users and transfers on the Polkadot network and the massive drop in weighted sentiment over the past month, also pointed to poor performance.
Read Polkadot’s [DOT] Price Prediction 2023-2024
Based on data provided by Santiment, the weighted sentiment for Polkadot was mostly negative throughout last month. This indicated that the crypto community had a negative outlook toward Polkadot during that period.
Coupled with that, the social mentions for Polkadot decreased by 43.3% and social engagements for Polkadot declined by 60.6% in the last three months according to Lunar Crush.
This decline in engagements and sentiment could impact Polkadot negatively in the future.
Source: Santiment
However, there is one area where Polkadot saw growth. It was in the number of Polkadot stakers on the network. According to Staking Rewards, the number of stakers on Polkadot grew by 5.6% in the last month.
The introduction of nomination pools, which account for 99% of the overall staked DOT, was one of the reasons for this growth.
Source: Staking Rewards
Are things getting stable?
In addition to the aforementioned information, the volatility for DOT declined. According to data provided by Messari, the volatility for Polkadot decreased by 97% over the last month.
This suggested that Polkadot became more stable and less risky for investors to buy. This could be one of the reasons why in spite of the unfavorable developments, the market dominance of Polkadot continued to increase.
How many DOTs can you get for $1?
Over the last week, Polkadot’s market cap dominance grew by 4.22%. This indicated that Polkadot was becoming a significant player in the crypto market.
Source: Messari
Despite these positive developments, it’s worth noting that the price of Polkadot fell by 0.44% in the last 24 hours, and was $4.88 at press time.
Overall, while Polkadot’s development activity stood to be impressive, it may not be enough to drive the project to new heights. Without a strong focus on community engagement, user adoption, and the adoption of projects built on its protocol, it may struggle to truly make an impact in the crypto space.