- Polkadot’s successful referendum upgraded Bridge Hub for enhanced blockchain interoperability.
- There was declining interest in DOT staking despite high rewards and a bearish price trend.
Despite the volatile nature of the cryptocurrency market, Polkadot [DOT] has persevered and made progress through its governance system.
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New changes
In a recent successful referendum, the upgrade from Bridge Hub to runtime v9420 was proposed and implemented. The Bridge Hub serves as an essential communication and interoperability tool for blockchains within the Polkadot ecosystem.
It acts as a central hub and facilitates the smooth transfer of assets, messages and data between different blockchains, improving the overall functionality of the network.
By ensuring that transactions and data can be received, understood and used by other blockchains within Polkadot, the Bridge Hub enables compatibility and collaboration between different blockchain projects through cross-chain capabilities.
However, the impact of these changes on attracting new users to the ecosystem remains uncertain. The success of the new referenda will play a crucial role in determining whether the protocol can deliver sustainable growth in the future.
Polkadot’s high wagering reward ratio can be an attractive factor for users. According to Polka dot insiderDOT has outperformed other cryptocurrencies in terms of staking rewards, with a reward of 14.54% for staking DOT.
Despite this, interest in DOT staking has declined, as evidenced by a 0.35% decrease in the number of strikers on the Polkadot network, according to Staking Rewards data.
Source: Staking Rewards
Looking at DOT
In terms of price performance, Polkadot’s native token, DOT, has experienced a significant drop of 9.43% since June 1. The price action showed a bearish trend, with an increasing number of lower lows and lower highs.
At the time of writing, DOT is trading at $5,043 after experiencing some bullish momentum following a test of the $4,221 support level.
Realistic or not, here is DOT’s market cap in terms of BTC
Despite the presence of buyer momentum, indicated by a high RSI and a bullish picture painted by the CMF of 0.21, traders continued to short DOT. The percentage of short positions against DOT has increased to 52.47%, according to Coinglass data.
Source: Trade View
Socially, DOT’s social dominance has increased in recent days. However, sentiment around DOT remains negative, as evidenced by falling weighted sentiment.
Source: Sentiment