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Polkadot (DOT) – which is seen to be on a winning streak in terms of social media metrics and development activity – has been on a retreat recently.
- Social media metrics at DOT nosedives
- Polkadot’s decline in developer activity could leave a bad taste in the mouth of investors
- DOT’s NFT volume off to as high as 1.64 million on September 24
Is this sudden drop in both metrics just a temporary hiccup or could be a warning signal to investors?
As you can see, the DOT price has seen an increase in developer activity during the past week. It’s surprising as Polkadot has been outpacing other cryptocurrencies over the past week but seems to be losing steam now.
DOT Social Volume Down, Bearish Movement Looms
This is a sign that there are not enough developers on Github. Investors could be negatively affected by this low level of development activity.
DOT’s social volume has capsized which could likely trigger an enhanced bearish movement. Notably, there is also a drop in DOT’s social media engagement in the past few days. As seen over the last month, Polkadot’s social metrics have dropped by 12.6%. Even more, the weighted sentiment of Polkadot has fallen below 0. These are on-chain metrics that show the growing negative sentiment around DOT.
Despite DOT’s bearish outlook, crypto has experienced a huge improvement in NFT. With that being said, DOT’s NFT volume has grown a lot from $364,250 as spotted on August 26 to as high as $1.64 million on September 24.
According to CoinMarketCapAs of press time, the DOT price had risen by 4.17% to $6.50.
Chart Santiment
Polkadot and Tether collaborate
Polkadot has been increasing its collaborations with Tether. Tether, on September 23rd announced they would be rolling out USDT directly to Polkadot. These collaborations are in pursuit of the legalization of DOT’s operations.
Polkadot recently adopted Chainlink, allowing Polkadot to use the Chainlink data price feed. The price may drop even though these partnerships are sure to boost growth and scalability of DOT in the short-term.
On the brighter side, DOT’s declining volume which has dropped by 82.34% in the past week signifies that DOT’s price could be bound for immediate recovery.
Market cap of the DOT is $7.28Billion, according to the daily chart. Source: TradingView.com| Source: TradingView.com Featured Image from Cryptopolitan. Chart: TradingView.com