Polkadot has seen a decline in development activity after maintaining highs on that front for a while. Moreover, the alternative token has recorded a dip in social media presence. Is the development activity slump only a bump on DOT’s path? Or are there notable factors for investors to check before trading DOT?
Connecting the DOTs
Santiment’s chart shows Polkadot suffered an enormous dip in development activity within the previous week. Polkadot, which outshined several digital coins in development activity within the past, has deteriorated on that front.
The activity declines might show that developers in Polkadot’s Github have declined substantially. Moreover, investors might perceive the developer activity dip as a negative signal. Nevertheless, other causes of worry remain.
Polkadot has seen its social media presence decline within the past few days. For example, DOT’s social engagement declined by 12.3% within the previous month. Santiment confirmed that the token’s social volume saw consistent declines.
Besides that, Polkadot’s weighted sentiment has dipped well beneath 0 within the last few days, showing massive negative bias around the altcoin at this publication. The social volume decline plus negative outlook might welcome bearish actions on Polkadot’s price in the coming sessions.
The Brighter Side
Despite the bearish signs, DOT witnessed some improvement in its NFT sector. Polkadot’s non-fungible token volume has grown sustainably within the previous month. The volume soared from August 26 at $363,270 to $1,620 million as of September 24.
Also, Polkadot has inked multiple collaborations, translating to positive sentiments in the upcoming times. The stablecoin Company Tether revealed plans to launch its USDT stablecoin on DOT’s platform. Such a move would legitimize the project’s operations and offer Polkadot increased stability.
Also, Polkadot has integrated Chainlink to allow Polkadot projects to utilize LINK’s data price feeds, sourcing off-chain data for decentralized financial protocols. Though Polkadot’s several collaborations suggest optimistic long-term growth, enthusiasts should beware of possible negative near-term price actions.
Moreover, the decline in volume by 80.52% within the previous week and market cap show DOT might not recover soon. Interested market players should research DOT’s potential outlook in the coming sessions.
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