Can Polkadot’s NFT ecosystem flourish in 2024?

Polkadot has submitted a new proposal aimed at bringing new changes to its NFT ecosystem.
DOT was up by over 65% last month, and most market indicators looked bullish.

Polkadot [DOT] has always been a pioneer in terms of development activity but has never gained much traction in the NFT space.

AMBCrypto thus took a look at the blockchain’s NFT space’s performance, to see what its NFT space holds for 2024 as MATIC continues to earn investors profits.

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Polkadot’s NFT ecosystem might grow in 2024!

Polkadot’s Development Activity has always been a major topic of discussion due to its unwavering numbers. However, as the festive season began, the blockchain’s Development Activity witnessed a decline.

[crypto-donation-box]

Source: Santiment

However, DOT’s NFT ecosystem remained active, as shown by DOT’s high Total NFT Trades Count. Its NFT Trades Volume in USD also registered a couple of spikes during the same period.

This was optimistic news, considering Polkadot is not a mainstream NFT blockchain.

Things might get better next year for the blockchain’s NFT ecosystem, as it has submitted a new proposal. OpenGov Referendum 377 is a proposal that requests funding to expand native NFT capabilities and seamless newcomer onboarding directly within Polkadot’s Asset Hub.

Infrastructure funding for Polkadot Asset Hub #2

????Interest in advanced #NFT functionality grows rapidly network-wide, but foundational work remains across Polkadot to actualize this.

????Gaps risk fragmented experiences across disjointed offerings from various parachains.… pic.twitter.com/U8qdg2uVew

— Polkadot Insider (@PolkadotInsider) December 30, 2023

The official proposal mentioned,

“By closing critical gaps like limited minting, metadata modularity, interoperability, documentation, and more, Asset Hub can transform into the welcoming hub for the next generation of digital ownership innovation on Polkadot.”

DOT investors are rejoicing

While Polkadot submitted this proposal, DOT’s price gained upward momentum. As per CoinMarketCap, DOT was up by more than 65% in the last 30 days. At press time, it was trading at $8.52 with a market capitalization of over $11 billion.

AMBCrypto’s analysis of Coinglass’ data revealed that DOT’s Funding Rate remained high while its price increased. This was good news, as it meant that derivatives investors were actively buying DOT at a higher price.

Source: Coinglass

Read Polkadot’s [DOT] Price Prediction 2023-24

To better understand how DOT might begin in 2024, AMBCrypto checked its daily chart. Our analysis of the Bollinger Bands showed that Polkadot’s price was in a highly volatile zone at press time.

Its Relative Strength Index (RSI) was also above the neutral mark, hinting at a continued price uptick. However, the MACD turned in the sellers’ favor as it displayed a bearish crossover.