Polkadot has been on the down low since last month with investors and traders pulling out of the market. According to CoinGecko, the token is down more than 16% in the past 2 weeks. With the bears in control of the market, Polkadot’s short-term gains might be compromised.
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Despite showing that Polkadot can still pack a punch, users are still skeptical of the platform’s viability and DOT’s capability to move upward in the coming days. With low investor confidence and a seemingly overhyped feature, Polkadot might be in for a rough ride in the coming days.
July: A Perfect Month For DOT?
On a recent X post by the official Polkadot account, they shared July metrics for the platform which, all-in-all, showed great growth last month. The platform saw a 1.1k increase in unique voters on the governance side, with over 118 referenda on the platform.
Great weekend read → July ’24: Key network metrics & insights
At a glace, Polkadot had:
ATH for number of OpenGov refs
Weekly GitHub commits on the rise
Steady forum activity & new usersSee details + get a special look at the Polkadot App https://t.co/e6eCquRWbk
— Polkadot (@Polkadot) August 16, 2024
Polkadot also hosts a very active developer base, amassing over 5.5k weekly commits done on its GitHub repository with more than 29.9k repositories. Nevertheless, active developers have been flatlining on the platform. According to its recent data, the number of active developers every week has stagnated at 900 in July.
In a post made by Polkadot Head Ambassador Alice und Bob, they detailed a problem that has been plaguing the ecosystem for a while now.
Inflation is caused by OpenGov spending more than it earns, because they just print more DOT to make up the difference.
To solve inflation, reduce wasteful OpenGov spending. Your tax DOT should be spent well, not poorly. https://t.co/20wq07eZPR
— Alice und Bob (@alice_und_bob) August 17, 2024
“Inflation is caused by OpenGov spending more than it earns, because they just print more DOT to make up the difference. To solve inflation, reduce wasteful OpenGov spending. Your tax DOT should be spent well, not poorly,” they said on the post.
The sentiment is shared by some members of the community, stating that the spending of OpenGov is problematic and should face some cutbacks to help the community. Some even went as far as commenting on the recent posts on the Polkadot account.
Polkadot Down From Crucial Support On This Level
DOT will seem to continue its downward spiral in the long term as the bears break through the $4.61 support level that the bulls tried so hard to hold on to. This represents a large setback for investors and traders which compounded the overall sentiment of skepticism within the community.
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With the community distrustful of the platform, investors are traders will see this as a sign of poor governance on Polkadot.
In the meantime, DOT bulls should try to slow the token’s downward momentum in the coming days or weeks. If the overall sentiment for the Polkadot platform doesn’t improve within the next couple of weeks, we can expect more pain for DOT as investors and traders find value elsewhere.
Featured image from Pexels, chart from TradingView
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