Polkadot’s native token DOT witnessed a 5% price decline, trading between $3.62 and $3.80, amid sustained selling pressure within the cryptocurrency market.
This downward movement coincides with concerning ecosystem metrics; developer activity within the Polkadot network reportedly declined by 20% quarter-over-quarter.
User engagement has simultaneously dropped to levels last seen several years ago, contributing to negative sentiment and token volatility.
Technical analysis suggests the $3.55 price point represents a crucial support level.
Market analysts indicate a potential rebound scenario towards $5 could emerge if this support holds firm and development activity on the network sees a significant recovery.
DOT’s current valuation remains approximately 94% below its all-time high, mirroring patterns observed in other blockchain ecosystems undergoing major transitions, such as ICON and EOS.
Comparative analysis highlights Polkadot facing weaker capital inflows and lower network utilization relative to competitor ecosystems like Ethereum (ETH) and Chainlink (LINK).