- Social commitment increased as a result of partnerships and developments.
- Rising volume alongside rising price could push DOT higher.
According to the blockchain research group House of Chimera, the Polkadot [DOT] ecosystem has seen significant growth in terms of social engagement. Whether real or artificial, social engagement in the crypto market reflects the sentiment surrounding a project.
So the rise in the metric suggests that Polkadot has become a project that a large part of the crypto population was watching. In the post, House of Chimera explained that there were reasons for the goodwill.
According to the consultancy, Polkadot’s growing collaboration with other protocols, as well as certain upgrades, have helped reach this point.
.@Dot‘s Pulse: Capturing the wave of social engagement
🔹The $POINT The ecosystem has seen significant growth in social engagement as the protocol continues to evolve.
🔸The constant flow of partnerships and protocol upgrades led to the growth. pic.twitter.com/qBe5DJOVQd— House of Chimera (@HouseofChimera) January 29, 2024
Polkadot keeps the work going
A look through Polkadot’s X-handle showed that it collaborated with other projects. For example, the protocol recently announced its partnership with Manta Network.
There was also one that concerned onboarding a security audit project. Furthermore, the addition of five new parachains in October 2023 contributed to the increase. A Parachain runs parallel to the Polkadot relay chain.
These upgrades were some of the reasons why Polkadot has remained one of the top projects with high development activity. However, AMBCrypto reported a few days ago that Polkadot had fallen behind Cardano [ADA] on the pecking order.
Despite the decline, Santiment’s data showed that DOT was doing well in terms of social dominance. Social dominance measures the share of discussions a project has had compared to other projects with a large market capitalization.
At the time of writing, DOT’s social dominance was 0.629%. This lecture suggests that discussions around Polkadot increased and were published in the media.
Source: Santiment
Sentiment favors the token
It was also a similar situation with the weighted sentiment. On January 28, the weighted sentiment was -0.703, indicating that participants were not optimistic about DOT. But at the time of writing, the tides had changed and the benchmark was positive.
The positive outcome here implies that players’ perception of DOT was bullish. But has this been reflected in the price action in any way?
At the time of writing, DOT changed hands for $6.96. This value was an increase of 15.08% in the last seven days. If DOT continues this performance, the $15 prediction that AMBCrypto was talking about could come true.
In the meantime, data from the chain showed that DOT’s volume has increased since January 27.
Source: Santiment
How much are 1,10,100 DOTs worth today?
During that time, volume was 137.74 million. However, press time data showed that DOTs volume had risen to 334.85 million.
As for the price action, if volume continues to rise, DOT could target $9 next. But if profit-taking occurs, a move back to $6 could be possible.