Polkadot (DOT) Investor Confidence Falls As Token Loses 16%
August 17 2024 - 6:00PM
NEWSBTC
Polkadot has been on the down low since last month with investors
and traders pulling out of the market. According to CoinGecko, the
token is down more than 16% in the past 2 weeks. With the bears in
control of the market, Polkadot’s short-term gains might be
compromised. Related Reading: Cosmos Price Analysis: Why This
Analyst Says ATOM Has ‘A Great Chart’ Despite showing that Polkadot
can still pack a punch, users are still skeptical of the platform’s
viability and DOT’s capability to move upward in the coming days.
With low investor confidence and a seemingly overhyped feature,
Polkadot might be in for a rough ride in the coming days.
July: A Perfect Month For DOT? On a recent X post by the official
Polkadot account, they shared July metrics for the platform which,
all-in-all, showed great growth last month. The platform saw a 1.1k
increase in unique voters on the governance side, with over 118
referenda on the platform. Great weekend read → July ’24: Key
network metrics & insights At a glace, Polkadot had: 🔹 ATH for
number of OpenGov refs 🔹 Weekly GitHub commits on the rise 🔹 Steady
forum activity & new users See details + get a special look at
the Polkadot App 👀https://t.co/e6eCquRWbk — Polkadot (@Polkadot)
August 16, 2024 Polkadot also hosts a very active developer base,
amassing over 5.5k weekly commits done on its GitHub repository
with more than 29.9k repositories. Nevertheless, active developers
have been flatlining on the platform. According to its recent data,
the number of active developers every week has stagnated at 900 in
July. In a post made by Polkadot Head Ambassador Alice und Bob,
they detailed a problem that has been plaguing the ecosystem for a
while now. Inflation is caused by OpenGov spending more than
it earns, because they just print more DOT to make up the
difference. To solve inflation, reduce wasteful OpenGov spending.
Your tax DOT should be spent well, not poorly.
https://t.co/20wq07eZPR — Alice und Bob 🥐 (@alice_und_bob) August
17, 2024 “Inflation is caused by OpenGov spending more than it
earns, because they just print more DOT to make up the difference.
To solve inflation, reduce wasteful OpenGov spending. Your tax DOT
should be spent well, not poorly,” they said on the post.
The sentiment is shared by some members of the community,
stating that the spending of OpenGov is problematic and should face
some cutbacks to help the community. Some even went as far as
commenting on the recent posts on the Polkadot account.
Polkadot Down From Crucial Support On This Level DOT will seem to
continue its downward spiral in the long term as the bears break
through the $4.61 support level that the bulls tried so hard to
hold on to. This represents a large setback for investors and
traders which compounded the overall sentiment of skepticism within
the community. Related Reading: Despite A Stormy Market,
Dogecoin Addresses Skyrocket To Over 6 Million With the community
distrustful of the platform, investors are traders will see this as
a sign of poor governance on Polkadot. In the meantime, DOT
bulls should try to slow the token’s downward momentum in the
coming days or weeks. If the overall sentiment for the Polkadot
platform doesn’t improve within the next couple of weeks, we can
expect more pain for DOT as investors and traders find value
elsewhere. Featured image from Pexels, chart from TradingView
Polkadot (COIN:DOTUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Polkadot (COIN:DOTUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024