- Polkadot recently submitted a proposal to PolkaWorld regarding the next three months’ operating costs. This is also PolkaWorld’s second treasury proposal since the launch of Polkadot’s OpenGov.
- DeFiLlama’s data revealed that Polkadot suffered a blow in the DeFi space as TVL dropped below 100,000 last week.
- Due to market conditions, the price of DOT also experienced a decline. At the time of writing, DOT was trading at $4.41 with a market cap of over $5 billion.
What changes will the latest network proposal bring to Polkadot? The decreasing TVL and DOT metrics do not look promising.
New Proposal on the Polkadot Network
Polkadot recently submitted a proposal to PolkaWorld regarding the next three months’ operating costs. This is also PolkaWorld’s second treasury proposal since the launch of Polkadot’s OpenGov. In addition, Polkadot Insider published a weekly summary of the blockchain, highlighting DOT’s performance in various areas.
Initially, PolkaWorld is the Polkadot community. PolkaWorld has produced eight motions and one OpenGov referendum so far. The latest proposal is a follow-up proposal to cover the operating and maintenance costs for the next three months.
The aim behind this proposal is to further promote and support community education for the Polkadot ecosystem in Asia. At the time of writing, the voting is ongoing, and over 60% of the voters have voted against the proposal.
While the voting continues, Polkadot Insider shared updates on the DOT ecosystem and published the blockchain’s weekly report. The report stated that the blockchain processed an average of 6,900 transactions last week and had an average of 3,600 active users.
Not only that, but the daily processed codes also remained relatively high. However, DeFiLlama’s data revealed that Polkadot suffered a blow in the DeFi space as TVL dropped below 100,000 last week.
In addition, due to market conditions, the price of DOT also experienced a decline. At the time of writing, DOT was trading at $4.41 with a market cap of over $5 billion. The price drop increased DOT’s 1-week price volatility. The token’s trading volume decreased last week, reflecting less interest from investors in trading the token.
Furthermore, demand in the derivatives market also decreased, as indicated by the red funding rate on Binance. However, Polkadot’s development activity remained high last week.
About the Future of Polkadot
Like the metrics, DOT’s market indicators also appeared bearish. For example, the Exponential Moving Average (EMA) Band supported sellers as the 20-day EMA was well below the 55-day EMA. According to Bollinger Bands, DOT’s price was in a high volatility zone, suggesting that the price could move in both directions with high volatility.
However, the good news was that the Money Flow Index (MFI) was in an oversold zone, which could increase buying pressure. Another bullish indicator was the Chaikin Money Flow (CMF), which showed an increase.
