Will Polkadot (DOT) continue to decline in price? The Ecoinomic

Will Polkadot (DOT) continue to decline in price?

26-09-2022 02:40 pm

Nga Nguyệt

DOT price drops

Over the past week, Polkadot (DOT) has experienced a major decline in development activity.

This decline in activity shows that the number of developers contributing to DOT’s Github has decreased significantly. Investors view this issue negatively.

According to Santiment, Polkadot’s social media presence has declined steadily over the past few days. Polkadot’s social engagements have fallen 12.3% over the past month. Along with that, Polkadot’s weighted sentiment has fallen below 0 over the past few days, suggesting that there is a lot of negative sentiment around the token at the moment.

DOT Polkadot’s social media presence. Source: Santiment

Declining social media presence and negative investor sentiment may cause DOT to decline in price in the future.

Positive signals

Despite all the bearish signals, Polkadot has seen growth in NFTs. Polkadot’s NFT volume has consistently increased from $363,270 on August 26 to $1.62 million on September 24.

Number of NFTs by Polkadot — The number of NFTs of Polkadot. Source: Santiment

Besides, Polkadot is actively promoting cooperation with stakeholders.

On September 23, Tether, a stablecoin company, announced the launch of stablecoin USDT on Polkadot’s platform. The move would legitimize Polkadot’s operations and provide Polkadot with a stable currency. Tether said the expansion to Polkadot will increase the stablecoin’s presence in decentralized ecosystems.

Polkadot has also integrated Chainlink onto the network, so that projects on Polkadot can use the Chainlink price feed to create an off-chain data source for DeFi protocols.

Polkadot’s partnership shows positive long-term growth of DOT, however the price of DOT may be negatively affected in the short term.

With volumes down 80.52% over the past week and Market Capitalization falling, Polkadot’s price is unlikely to recover anytime soon.