Polkadot could be the life of a party but this is why DOT could be a spoilsport

28 April 2023

in DOT

Reading Time: 5 mins read

Polkadot records the highest development activity among major blockchain platforms
DOT token struggles for momentum while staking and volume metrics remain healthy

According to recent reports, there’s been a flurry of activity around Polkadot’s development metric, which was a positive sign. The big question, however, was whether this uptick in activity will have a ripple effect on DOT and the overall ecosystem.

Are we looking at a significant boost for Polkadot, or is this just a temporary blip on the radar?

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Polkadot bosses dev activity

Santiment’s latest data revealed that Polkadot ranked top for development activity among major blockchain platforms in the last month. A glance at the chart highlighted the dominance of Polkadot and Kusama, with both boasting over 600 units.

Interestingly, this correlation between development activity and price performance wasn’t a mere coincidence. History has shown that assets backed by dedicated and forward-thinking teams tend to be the ones that thrive and make significant gains in the long run.

Upon examining Polkadot’s development activity, it became apparent that April has been a particularly bustling month for the platform. While there was a notable spike in activity during March, it paled in comparison to the current flurry of development on Polkadot.

As of this writing, the platform’s development activity stood at 100.

Source: Santiment

DOT on a daily timeframe

Despite Polkadot’s impressive development activity, the same cannot be said for its DOT token, which has struggled to gain momentum recently. The daily timeframe chart showed that the token had experienced more declines than gains in the past few days.

Source: TradingView

However, as of this writing, there was a glimmer of hope, with DOT trading at a modest profit of just under 1%, hovering around the $5.9 mark. A strong support region was in place, spanning between $5.6 and $5.1, which could provide some much-needed stability for the token.

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On the flip side, the long Moving Average was a resistance point, with DOT struggling to break through the $6.2 mark.

DOT staking and volume

Based on CoinMarketCap’s latest figures, the circulating supply of DOT currently exceeded 1.1 billion tokens. However, data sourced from Polkadot explorer Subscan revealed that a significant portion of these tokens – more than 631 million, to be exact – are currently being staked.

Nearly all of this staked token – representing a staggering 99.6% – is being staked through nominators, while validators account for just 0.3%.

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Despite this high level of staking activity, the volume metric for DOT has also been holding up quite well. According to the latest data from Santiment, the volume metric registered over 246 million as of this writing. The volume indicated a healthy trading activity and interest in the token.