- Polkadot has recorded a surge in revenue as transactions shot up—Avalanche has recently enjoyed such a surge, and the token price went on a massive price run, so is DOT next?
- In the past week, only Avalanche has seen more revenue, which shows that the two are the blockchain networks recording the highest interest from ordinary retail users.
Polkadot has recorded a breakout month, and since late November, it has gained over 52% to trade at $7.83. But is DOT on the verge of an even bigger breakout? According to one indicator, the project could be about to hit new heights towards the end of the year.
In the crypto world, one of the defining hallmarks of a crypto project is the retail users’ interest, and one of the best ways to determine this is the number of transactions. Subsequently, a project’s transaction fees and overall revenue become critical indicators of the interest in a project, and as has been observed with other projects, can be a strong indicator of price moves.
Take Avalanche; the project recorded a surge in transaction fees on December 15, with the network’s on-chain revenue hitting $3.5 million. This was almost twice as much as its previous record and indicated a strong interest in the project. This was followed by a price surge that set a new record for the year at $48.
Polkadot is following a similar path. According to on-chain analytics, the project has recorded a 300% uptick in revenue in the past week. This places it second on the network revenue chart, right behind Avalanche, which still enjoys sustained interest from investors after its December 15 breakout. Third on the list is Kusama, Polkadot’s canary network, or the platform where developers can deploy and test out their applications before launching them on Polkadot.
TOP BLOCKCHAINS BY REVENUE RATE IN 7 DAYS
Witness the economic prowess of the blockchain world
Delve into the top blockchains by revenue rate in the past 7 days—unveiling the financial leaders shaping the decentralized landscape
In the last 7 days, @Polkadot placed… pic.twitter.com/rCt32BygDw
— Polkadot Insider (@PolkadotInsider) December 20, 2023
Is Polkadot (DOT) Set to Implode?
Polkadot is trading at $8.45 at press time, gaining close to 10% in the past day. In the top 20 coins, only Solana at 18% recorded higher gains in the past 24 hours. Over the past week, DOT has gained 20%, shooting from $7.04 at the start of the week to its current price level.
Investors’ interest in DOT can also be seen in the token’s surging trading volume. Over the past day, over $734 million of the token changed hands in the open market, with Binance leading the way at $158 million. This metric is even more significant because the crypto market’s volume always dips over the weekend. Bitcoin’s volume, for instance, dropped by 23% over the past day to $14.2 billion.
Other positive metrics for the token include its social volume, which has consistently remained high throughout the month. Investors’ sentiment around DOT has also been broadly positive over that time. The coin’s Money Flow Index has been in the overbought zone for days, but it has recently dipped and is currently on the neutral mark. This indicates that the coin still has enough room to shoot up as we head towards the end of the year.
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