Polkadot [DOT]: Does a decline on this front mean a decline on that front

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Polka­dot, which had a high devel­op­ment activ­i­ty for quite some time, saw a decline in the same recent­ly. Along with that, there has also been a dip in DOT’s social media pres­ence as well.

Is the decline in devel­op­ment activ­i­ty just a bump on the road? Or are there more fac­tors that investors need to look into before get­ting into $DOT?

Connect the dots here

As can be seen from the chart attached below, Polka­dot (DOT) observed a mas­sive decline in devel­op­ment activ­i­ty over the past week. Polka­dot, which had been out­per­form­ing mul­ti­ple tokens in terms of devel­op­ment activ­i­ty in the past, has seen the same almost grind to a halt now. 

Source: San­ti­ment

This decline in activ­i­ty could imply that devel­op­ers con­tribut­ing to DOT’s Github have reduced sig­nif­i­cant­ly. Poten­tial­ly, this decline in devel­op­er activ­i­ty could be per­ceived neg­a­tive­ly by investors. How­ev­er, there are oth­er caus­es of con­cern as well.

There has been a decline in Polkadot’s social media pres­ence over the last few days. For instance, Polkadot’s social engage­ments have depre­ci­at­ed by 12.3% over the past month.

Accord­ing to San­ti­ment, Polkadot’s social vol­ume has fall­en con­sis­tent­ly. Along with that, Polkadot’s weight­ed sen­ti­ment has gone way below 0 over the past few days, indi­cat­ing that there is a lot of neg­a­tive sen­ti­ment sur­round­ing the token at the moment.

Source: San­ti­ment

The declin­ing social vol­ume and the neg­a­tive sen­ti­ment could have bear­ish effects on DOT’s price going into the future.

Looking at the bright side

Despite all the bear­ish sig­nals, how­ev­er, Polka­dot did see some growth in the NFT depart­ment. Polkadot’s NFT vol­ume has been grow­ing con­sis­tent­ly over the past month. The vol­ume has gone from $363,270  on the 26th of August all the way to $1.62 mil­lion on the 24th of September.

Source: San­ti­ment

Anoth­er pos­i­tive for Polka­dot is the increas­ing num­ber of col­lab­o­ra­tions that they are a part of. On 23 Sep­tem­ber, Teth­er, a sta­ble­coin com­pa­ny, announced that it will be launch­ing its sta­ble­coin USDT on Polkadot’s plat­form. This move would fur­ther legit­imize Polkadot’s oper­a­tions and pro­vide Polka­dot with a sta­ble cur­ren­cy to move in and out of the network. 

Polka­dot has also inte­grat­ed Chain­link, onto their net­work, so that projects on Polka­dot can use Chainlink’s data price feed to source off-chain data for their DeFi protocols.

Even though Polkadot’s mul­ti­ple col­lab­o­ra­tions sig­ni­fy pos­i­tive long-term growth for DOT, read­ers should keep in mind that DOT’s prices could be affect­ed neg­a­tive­ly in the short-term.

Thanks to declin­ing vol­ume, which has depre­ci­at­ed by 80.52% over the past week, and a declin­ing mar­ket­cap, it seems that Polkadot’s price wouldn’t be recov­er­ing any time soon.

Read­ers are advised to do their research to get a clear­er under­stand­ing of what DOT’s future is going to look like.



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