Updated on January 16, 2023 07:24 AM
Despite of integrating parachains and revealing all the upcoming projects, Polkadot is still trapped inside the Crypto winter. The development is still going on, however, the prices are still consolidating between the $5 and $4 range.
Polkadot has been battling to emerge from the crypto cold. However, DOT began to show signs of life in the last two days, registering a positive increase before plummeting from $5.20 to $4.46.
Polkadot, the 12th largest cryptocurrency with an overall worth of a little around $6 billion, continues to reduce its losses in this prevailing crypto winter to moderate levels. Following FTX's demise, DOT's price stayed about $6 before plummeting to the $5 level.
As previously reported, Polkadot's ecosystem has problems. Over the past several months, the overall value locked in key parachains like MoonRiver, MoonBeam, and Acala has plummeted.
The upgrade is expected to increase the network's transaction per second (TPS) capacity by 100,000–1,000,000.
Making construction in the Polkadot ecosystem as simple as possible is one of their main goals. The objective was to improve the developer experience across the board, and smart contract parachains have made it easy to build for the network and leverage its interoperability.
The solution to this issue is to use parathreads. They mix the efficiency of starting a smart contract with the strength of building a blockchain. They only need to submit their code to the relay chain, set up a few sponsored collator nodes, and operate without waiting for the next auction or doing anything else.
Also read: Polkadot Going Down Stairs as Bears Pushing the Price Movement
At the press time, Polkadot pricing is $4.62 with a 24-hour trading volume of $120,309,757. Polkadot has decreased by 0.86% in the previous 24 hours. DOT is currently ranked #12 on CoinMarketCap, with a market cap of $5,307,677,514. The circulating supply is 1,148,471,778 DOT coins, and the maximum amount is not known.
Related: How Polkadot works?
Polkadot (DOT) has been dumping for the previous several days, and despite a minor rebound today, the currency has been falling for the past seven days. Polkadot (DOT) on the other hand, has been performing well in the market and is predicted to jump this weekend.
With the Polkadot parachain technology and ecosystem growing, we may expect $DOT to continue on its upward trend.
For short-term investors, the token is presently trading in a range-bound zone between $4.60 and $4.70. Over the last several hours, the price has been consolidating around the $4.61 level, indicating a lack of movement in the immediate term. The red candle on the hourly chart indicates that gloomy sentiment is still prevalent in the market.
The MACD indicator is flashing a negative signal on the 4-hour chart, indicating a bearish crossing. The RSI indicator is also negative since it is now at 25.01, which is in the oversold range. The 50-day moving average is also lower than the 200-day moving average, showing a pessimistic attitude toward the coin.
Polkadot price behaviour on a daily chart shows that the token began the day at $4.67 and depreciated during the day, hitting a low of $4.60. The price is now trading at $4.61, with bearish pressure influencing the token's price movement. The bullish momentum was strong enough to send the price back up to $4.70 earlier today, but the bulls were unable to maintain this level, and the token fell again.
The MACD indicator, which displays a negative crossover on the 24-hour chart, lends weight to the bearish mood for DOT/USD. The RSI indicator is also displaying a bearish signal as it currently stands at 30.58. Overall, DOT/USD remains in a negative trend and may fall lower if the bears maintain their onslaught. The moving average(MA) further supports the negative outlook since the 50-day MA is below the 200-day MA.
The on-chain data from Messari shows that the DOt right now has very less Market dominance over other DeFi platforms. The falling market cap dominance shows a significant dump in the terms of social dominance, popularity and investor interest. As the parachains are considered, the Polkadot ecosystem is far away from the reach of any insolvency as many projects and protocols are using Polkadot as a side chain due to its scalability.
The record high of Marketcap dominance Polkadot exhibited was on January 4, 2022, and since then it has fallen to 0.68%, a direct decrement of 0.77% which is a huge number if the global crypto market cap is considered.
Polkadot is still quite young. If you prefer taking chances, your investment might pay off big in the long term. However, it might fail if a fresh, superior technology emerges and overtakes Polkadot.
Polkadot is a platform that allows multiple blockchains to transport messages, including currency, in a trust-free method; sharing their unique features while pooling their security. Polkadot, in a nutshell, is a scalable, heterogeneous, multi-chain technology.
Polkadot's goal is to link chains, while Ethereum's goal is to create a secure public blockchain for high-value transactions. Ethereum is stronger in terms of acceptance. It now has many more practical applications. DOT, on the other hand, may offer greater potential.
Hackers exploited coding flaws twice, draining millions of dollars before being caught. There are a limited amount of parachains available, and slots are offered by auction, potentially pricing out certain smaller use cases.
Cardano, Solana, EOS, and Polkadot are among of the most well-known ETH killers.
Disclaimer: The article is merely the opinion of the writer and is not intended to be taken as investment advice.
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