Polkadot Developments Show Strength, Despite Coin’s 18% Loss
August 07 2024 - 10:00PM
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As the rebound in some sectors of the crypto market slows, Polkadot
(DOT) has captured some momentum garnering the attention of some
investors that grabbed it at a discount. According to CoinGecko,
the token is up almost 6% today, with the rebound slowing to a mere
2% increase since yesterday. However, this has not deterred
investors from keeping their eyes on DOT as it slowly makes its way
upward. Related Reading: Bloody Monday: Cardano Not Spared
From Bloodbath, Suffers 30% Loss This is partly due to Polkadot’s
continuing on-chain developments that helped ease market anxieties
after the broader sell-off that happened this week. We might see
more positive movement in the coming days investors and traders are
convinced that the sell-off is a one-of-event. Tuning In To
On-Chain News For Polkadot On-chain, the Polkadot’s
parachains are actively contributing to the network’s overall
growth. Polkadotters, an X account dedicated to sharing Polkadot
developments, shared several developments this week. Bifrost’s July
report is among the developments that show incredible growth for
the protocol. The monthly report shows that Bifrost grew by a
substantial margin. By the end of July, Bifrost had a total of
$80.8 million in total value locked (TVL) and over 8 million
voucher DOT (vDOT) minted. vDOT is the protocol’s representation of
DOT staked on the platform and according to this high number, DOT
is an active token used in staking on Bifrost. Peaq, a
parachain focused on decentralized physical infrastructure networks
(DePIN), secured a partnership with Roam, a fellow DePIN-focused
platform. The partnership covers Roam’s launch of its network and
native token on the Peaq ecosystem, contributing to Polkadot’s
growth through increasing activity on Peaq and its network.
DOT Tries To Breach $4.61 DOT is currently attempting to break
through the $4.61 ceiling, resuming yesterday’s action by trying to
flip the ceiling to a solid support level. However, this maybe
thwarted by the bears as the market currently favors the downward
pressure felt by investors and traders in the short term.
Despite this, positive developments can alleviate the shaken
confidence brought by the market’s sharp decline this week. The
only question remaining will be how big the gains can be if the
rebound continues. If DOT bulls are successful in this
breakthrough, the token will have the necessary foundation for
future upward movement. Bulls can emulate DOT’s movement in late
2020 where they settled on $4.61 before the market’s bull run.
However, market volatility will still be a huge problem for DOT’s
performance. Related Reading: Aave Protocol Unfazed By Market
Jitters, Surges 21% If the major cryptocurrencies continue their
rebound to pre-overreaction levels, then there might be a chance
for DOT to reclaim $6.16 in the long term. Until then, investors
and traders should remain cautious of the token’s position and
momentum as it can be susceptible to a swing downward. Featured
image from MoneyWeb, chart from TradingView
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