What Does Polkadot’s Latest Proposal Mean for the Network? Are Good Days Ahead for DOT Token?

  • 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-DOT

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.

Polkadot-Metrics

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.

Polkadot-Volatility-and-Volume

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.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin, Ethereum Slide With Stocks: Did the Market Break?

Discover the key factors driving the current market downturn, and their impact on Bitcoin, Ethereum, and other cryptocurrencies. Explore expert insights and potential future scenarios.

Bitcoin (BTC) is “Super Cheap” at $69k: Adam Back Rejects Post-Halving Crash Predictions

Legendary cypherpunk and Blockstream CEO Adam Back offers a contrarian view on Bitcoin's price action. Get expert insights on market sentiment, halving predictions, and BTC's long-term value potential.

Ethereum’s Pectra Upgrade: Enhanced UX, Wallet Innovation, and Community Debate (ETH)

The Ethereum Pectora upgrade promises a revolution in wallet functionality. Get insights on the debate surrounding its groundbreaking features and their potential impact on the Ethereum ecosystem.

Bitcoin (BTC) Price Retreats Amid Gold’s Record Surge; Analysts Eye Re-accumulation Phase

Find out why Bitcoin's momentum stalled as gold soared to new highs. Explore expert insights on BTC's price trajectory and the significance of re-accumulation patterns.

Litecoin (LTC) Surges in Popularity, Surpassing 5 Million Long-Term Holders

Discover the reasons behind Litecoin's surge in popularity and why investors are increasingly choosing LTC for long-term holdings. Get insights into the future potential of this established cryptocurrency.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Bitcoin BTC’s Path to Recovery: Will the Upcoming Halving Trigger a Rise Above $71,400?

This analysis delves into Bitcoin's immediate future as it approaches a critical halving event, exploring potential movements above key resistance levels.

Bitcoin (BTC) Surges Past $70k: Could $75k be the Next Target?

Bitcoin (BTC) has made a decisive move above $70,000, indicating bullish momentum. This article delves into the factors driving the surge, technical analysis, and what investors should watch for in the near term.

NEO Launches Uptrend to $25! Current NEO Analysis

Analyzed NEO's 3-hour chart, showing upward trend post $14.80 resistance breakthrough, eyeing $15.18 resistance; potential long positions suggested at $14.636 - $14.448 support range with a stop loss at $13.90, as NEO aims for $25 target amidst over 5% gains.

Is Litecoin Ready to Launch its Rise to $140? Current LTC Analysis

When examining LTC's technical chart, a downward trend is observed in recent days. The nearest support is at the level of 91.86 dollars. The support range between 97.61$ and 99.07$ on the 4-hour chart is significant. For long positions, the support range of 92.41$ - 91.07$ can be expected.

Bitcoin (BTC) Surges Past $70k: Could a Rally to $75k be Next?

Get expert analysis on Bitcoin's breakout above $70,000. Discover what's driving the price action, key levels to watch, and potential scenarios for BTC's near-term future.
Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
spot_imgspot_imgspot_imgspot_img

Bitcoin, Ethereum Slide With Stocks: Did the Market Break?

Discover the key factors driving the current market downturn, and their impact on Bitcoin, Ethereum, and other cryptocurrencies. Explore expert insights and potential future scenarios.

Bitcoin (BTC) is “Super Cheap” at $69k: Adam Back Rejects Post-Halving Crash Predictions

Legendary cypherpunk and Blockstream CEO Adam Back offers a contrarian view on Bitcoin's price action. Get expert insights on market sentiment, halving predictions, and BTC's long-term value potential.

Ethereum’s Pectra Upgrade: Enhanced UX, Wallet Innovation, and Community Debate (ETH)

The Ethereum Pectora upgrade promises a revolution in wallet functionality. Get insights on the debate surrounding its groundbreaking features and their potential impact on the Ethereum ecosystem.