Polkadot [DOT] bulls confirm investors’ confidence- Here’s how

• Polka­dot crowns the list of top blockchain pro­to­cols by devel­op­ment activity.
• DOT deliv­ers a bull­ish week but is already exhibit­ing signs of a slowdown.

Polkadot’s native cryp­tocur­ren­cy DOT just con­clud­ed a bull­ish week dur­ing which it trailed the top cryp­tocur­ren­cies. Despite that, its native net­work has not had much going for it this month.

How many are 1,10,100 DOTs worth today?

DOT exchanged hands at $6.45 at press time, a bit of a pull­back from its week­ly high. Nev­er­the­less, the same price point rep­re­sent­ed a 20% pre­mi­um from its week­ly low or a 24% ral­ly from its cur­rent 4‑week low.

At press time, its price move­ment was in tan­dem with the likes of Bit­coin and Ethereum, but unlike them, DOT was yet to achieve a new YTD high.

Source: Trad­ingView

The lat­est price piv­ot may not be excep­tion­al but it is a notable pos­i­tive step for the Polka­dot net­work. The lat­ter has been rel­a­tive­ly over­shad­owed by oth­er net­works and major devel­op­ments in the pipelines.

Speak­ing of devel­op­ment, the lat­est GitHub data ranked Polka­dot as the top blockchain net­work in terms of devel­op­ment activ­i­ty.

GitHub Dai­ly Devel­op­ment Activity: 

#1: 710 Polka­dot / Kusama
#2: 679 Car­dano
#3: 572 Decen­tra­land
#4: 497 Hed­era
#5: 469 Chain­Link
#6: 417 Aptos
#7: 404 Sta­tus
#8: 355 Inter­net Com­put­er
#9: 341 Cos­mos
#10: 330 Lido DAO Token pic.twitter.com/6QbR3eoE66

— ProofofGitHub (@ProofofGitHub) March 18, 2023

Polka­dot has fre­quent­ly been on the list and topped it mul­ti­ple times so far this year. It high­light­ed a healthy con­fir­ma­tion that the net­work was still build­ing after a few announce­ments relat­ed to pro­to­col development.

At the time of writ­ing, the devel­op­ment activ­i­ty met­ric was at its high­est point in the last two weeks. Sim­i­lar­ly, DOT’s mar­ket cap surged back to its biweek­ly high. The last time it touched this mark was on 14 March.

Source: San­ti­ment

Real­is­tic or not, here’s DOT mar­ket cap in BTC’s terms

Also on the devel­op­ment front, Polka­dot just announced the avail­abil­i­ty of Smol­dot 1.0.0. The lat­ter is Polkadot’s light client which can con­nect to sev­er­al networks.

Smol­dot @Polkadot’s light-client just hit 1.0.0 and it now out­per­forms RPC! And with the Con­nect brows­er exten­sion, there’s not even a few sec­onds sync time on page load. Here it’s used by sev­er­al pages and for sev­er­al net­works includ­ing West­mint. Yup – works for parachains, too! pic.twitter.com/6phNWrViA0

— Gavin Wood (@gavofyork) March 17, 2023

The Smol­dot light client is one of the projects that may under­score the afore­men­tioned devel­op­ment activ­i­ty. Nev­er­the­less, it could be a small por­tion of the devel­op­ment project that cur­rent­ly under­pins the robust devel­op­ment activity.

Are we likely to see more upside? 

Well, DOT’s volatil­i­ty declined sig­nif­i­cant­ly in the last two weeks. This may explain why it failed to ral­ly to a new YTD high. Low­er volatil­i­ty may point towards lim­it­ed price move­ment but it is worth not­ing that the volatil­i­ty is start­ing to surge once again.

Source: San­ti­ment

The volatil­i­ty surge points towards a high­er like­li­hood of a bear­ish retrace­ment. The fall of investors’ con­fi­dence in the last sev­en days as indi­cat­ed by the weight­ed sen­ti­ment met­ric fur­ther backs the bear­ish bias.