- Despite a significant price drop, Polkadot’s network activity reached an all-time high in April.
- However, following a rise in April, Polkadot’s network activity began to decline in May.
- Most market indicators for DOT appear bearish.
Despite a price drop, Polkadot’s network activity reached an all-time high in April. However, the trend reversed in May with a decline in network activity and bearish market indicators.
Polkadot’s Performance in April
In April, Polkadot [DOT] experienced a significant price drop of over 22% according to CoinMarketCap. This negatively impacted the token’s social metrics, with a dominant bearish sentiment in the market and a slight decline in Social Volume. Interestingly, despite the price drop, the blockchain’s network activity reached a record high.
Decline in Network Activity in May
While April saw high network activity, the trend changed in May. Data from Artemis shows a decline in DOT’s daily active addresses in the last week of April, leading to a decrease in the blockchain’s daily transactions. At press time, DOT’s daily active addresses stood at 5.4k, with 40k daily transactions. Additionally, both DOT’s fees and revenue fell, and its Total Value Locked (TVL) in the DeFi space declined after a promising spike on the 6th of May.
Conclusion
Despite a record high in network activity in April, Polkadot experienced a significant price drop and a decline in network activity in May. Most market indicators for DOT appear bearish, and it remains to be seen how the token will perform in the coming months.
