Polkadot has been at a low point since last month, with investors and traders withdrawing from the market. According to Coin geckothe token has fallen by more than 16% in the past 2 weeks. With the bears in control of the market, Polkadot’s short-term gains could be in jeopardy.
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Despite showing that Polkadot can still pack a punch, users are still skeptical about the platform’s viability and DOT’s ability to make progress in the coming days. With investor confidence low and a seemingly overhyped feature, Polkadot could be in for a rough ride in the coming days.
July: a perfect month for DOT?
In a recent X-post from the official Polkadot account: they shared July stats for the platform, which showed great growth overall last month. The platform saw an increase of 1.1 thousand unique voters on the board side, with more than 118 referendums on the platform.
Great weekend read → July ’24: Key network stats and insights
At a glance, Polkadot had:
🔹 ATH for number of OpenGov references
🔹 Weekly GitHub commits are increasing
🔹 Steady forum activity and new usersView details + view the Polkadot App 👀 specialhttps://t.co/e6eCquRWbk
— Polkadot (@Polkadot) August 16, 2024
Polkadot also has a very active developer base, racking up over 5.5k weekly commits on its GitHub repository of over 29.9k repositories. Nevertheless, active developers have brought the platform down. According to recent data, the number of active developers per week has stagnated at 900 in July.
In a message from Polkadot chief ambassador Alice and Bobshe detailed a problem that has been plaguing the ecosystem for some time.
Inflation is caused by OpenGov spending more than it earns because they just print more DOT to make up the difference.
To solve inflation, you need to reduce wasteful OpenGov spending. Your tax dollars should be spent well, not poorly. https://t.co/20wq07eZPR
— Alice and Bob 🥐 (@alice_und_bob) August 17, 2024
“Inflation is caused by OpenGov spending more than it brings in, because they simply print more DOT to make up the difference. To solve inflation, you need to reduce wasteful OpenGov spending. Your tax dollars should be spent well, not poorly,” they said in the post.
The sentiment is shared by some community members, who argue that OpenGov’s spending is problematic and that cuts are needed to help the community. Some even went so far as to comment on the recent posts on the Polkadot account.
Polkadot down from crucial support at this level
DOT will look to continue its downward spiral in the long term as the bears break the $4.61 support level that the bulls tried so hard to reach. This represents a major setback for investors and traders, further exacerbating the general sense of skepticism within the community.
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With the community distrusting the platform, investors and traders will see this as a sign of poor governance on Polkadot.
In the meantime, DOT bulls should look to slow the token’s downward momentum in the coming days or weeks. If overall sentiment for the Polkadot platform doesn’t improve in the coming weeks, we can expect more pain for DOT as investors and traders start finding value elsewhere.
Featured image from Pexels, chart from TradingView