The topic of Polkadot (DOT) is attracting special attention from the cryptocurrency investment community. Despite massive investments of up to $500 million, Polkadot has been unable to maintain a lasting user and developer base, leading to a sharp decline in value. From a peak of $55 in November 2021, the price of DOT has plummeted by 96%. This article will analyze the reasons behind Polkadot's decline while exploring the future of this platform in the fiercely competitive landscape of the cryptocurrency market.
Polkadot: A Promising Start and Challenges Ahead
With an investment of $500 million, Polkadot was expected to become a leading platform for developers. However, this promise quickly turned into an illusion as the network failed to meet user demands.
The launch of Parachains has not attracted the expected interest. The number of daily active users has dropped to only 5,000 by 2025. Although the number of developers once reached 2,400, this figure has fallen to just 1,000.
Investment capital leaves Polkadot as activity declines
Amid declining users, new capital flows have also stopped into Polkadot. Current investors have begun to withdraw from the market, leading to a sharp drop in DOT trading volume from $39 billion to $5 billion.
Polkadot's revenue has also seen a severe decline, only reaching $462 and not exceeding $1,000 for two consecutive months. This situation marks a decline in the role of Polkadot, which was once considered one of the key infrastructure platforms.
Where are the Users? Declining Developers, What Future for Polkadot?
As DOT continues to tumble, many other cryptocurrencies are on the rise. This raises concerns for investors about Polkadot's potential for recovery in the future. The market dominance of DOT has fallen to just 0.15%, signaling that Polkadot is sinking into crisis.
Investors have shifted capital to other options, causing Polkadot significant difficulties in regaining trust from the community.
Does Polkadot have the ability to recover or will it continue to decline?
Analysis from experts shows that Polkadot is facing unfavorable market conditions, which could lead to losses on the price chart in the future. Currently, the price of DOT is halted at $3.3, down 26.8% in a month and 47.1% in a year.
The RSI index is approaching the oversold zone, indicating prolonged selling pressure. If this situation continues, DOT could drop to the support level of $3.0, and even down to $2.8. Establishing a level at $2.6 might turn Polkadot into a 'dead chain' rather than a chance for recovery.
To prevent further damage, proactive moves from buyers are needed. Recovery is not impossible. If selling pressure eases, DOT could aim for the $3.6 mark, but if it cannot hold the $2.6 level, the future will look even bleaker.
Source: https://tintucbitcoin.com/polkadot-he-sinh-thai-suy-giam-dot-sup-do/
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