Journalist
Posted:
- DOT appreciated by more than 22% in just seven days
- Statistics suggested that the price upward trend could continue further
Dot [DOT], has submitted quite a few new proposals lately that have the potential to change the way the blockchain works. One of the most notable is Referendum 335. While that was happening, the token’s price charts managed to stay green despite the bearish state of the broader market.
Propose and propose again
Currently, Polkadot is in the process of approving several new proposals that could have a greater impact on the future of the blockchain. The first is Referendum 335. The proposal focuses on a new auction schedule for Polkadot for 2024, which is currently passing with a 98.1% vote in favor. The proposal also highlights the possibility of canceling the remaining auctions.
THREAD – @Dot #PolkadotDigest December 11, 2023#Dot News
A new parachain auction started today and Sora is currently in charge. The End Period begins in approximately 40 hours. https://t.co/OAJWlP6AgZ
—Bill Laboon | Web3 Foundation (@BillLaboon) December 11, 2023
Another proposal is Referendum 340, which proposes opening an HRMP channel between Asset Hub and Polimec. This proposal was also adopted at the time of writing with more than 99% of votes in favor.
According to the official proposal,
“Opening a channel between AssetHub and Polimec is critical because projects looking to raise money for Polimec will do so in stable coins (USDT or USDC) or other tokens as decided by the project raising money.”
How could these proposals impact DOT?
While these proposals do not have a direct effect on the price, they play an important role in fueling market sentiment, which in turn influences the price of a token. That’s why AMBCrypto looked at the current market sentiment around Polkadot.
According to our analysis, although several proposals are still being voted on, there are POINT‘s overall popularity dropped last week, as evidenced by the decline in social volume. Negative sentiment surrounding the token also rose, with weighted sentiment registering a sharp decline after peaking on December 9, 2023.
Source: Santiment
However, it was interesting to note that even though the token’s popularity declined, the weekly price chart remained in the green. According to CoinMarketCapat the time of writing, DOT was up more than 22% over the past seven days.
At the time of writing, it was trading at $6.89 with a market cap of over $8.6 billion. In fact, investor interest in DOT trading was high as volume continued to rise last week. The demand for DOT in the derivatives market was also high, which was reflected in the green Binance funding rate.
Source: Santiment
Read Polka dots [DOT] Price prediction 2023-24
AMBCrypto then looked at other derivatives metrics to better understand what you can expect from them POINT.
We found that even though the price of the token increased, the open interest also increased in value. When open interest rises, it increases the chance that the prevailing price trend will continue.
Source: Coinglass