Polkadot’s value has been at its lowest levels since last month as investors and traders pull out of the market. According to Queen GeckoThe token has fallen by more than 16% in the past two weeks. With bears in control of the market, Polkadot’s short-term gains could be at risk.
Related reading
Despite Polkadot proving to still have a strong impact, users are still skeptical about the viability of the platform and DOT’s ability to move upwards in the coming days. With low investor confidence and an overhyped feature, Polkadot may face a rough ride in the coming days.
July: Is it the ideal month for the Department of Transportation?
In a recent post on the official Polkadot account, They shared The platform’s July metrics showed significant growth over the past month. The platform saw an increase of 1.1k unique voters on the governance side, with over 118 polls on the platform.
Great Weekend Read → July 2024: Key Network Metrics and Insights
At a glance, Polkadot had:
🔹 ATH for OpenGov references
🔹 Increase in weekly commitments on GitHub
🔹 Constant forum activity and new usersSee details + get a special look at the Polkadot app 👀https://t.co/e6eCquRWbk
– Polkadot (@polkadot) August 16, 2024
Polkadot also hosts a very active developer base, with over 5.5k weekly commits to its GitHub repository with over 29.9k repositories. However, the number of active developers on the platform has remained static. According to its latest data, the number of active developers per week remained steady at 900 in July.
In a post written by Polkadot’s chief ambassador, Alice and BobThey are detailed It is a problem that has been troubling the ecosystem for some time.
Inflation is caused by OpenGov spending more than it earns, as it prints more DOT to make up the difference.
To solve the inflation problem, you need to limit unnecessary spending on OpenGov. Your taxes should be spent properly, not badly. https://t.co/20wq07eZPR
– Alice and Bob 🥐 (@alice_und_bob) August 17, 2024
“Inflation is caused by OpenGov spending more than it earns, printing more DOT to make up the difference. To solve inflation, OpenGov’s unnecessary spending needs to be curtailed. Tax DOT should be spent well, not badly,” the post reads.
Some community members share this view, seeing OpenGov spending as a problem and needing some cuts to help the community. Some even went as far as commenting on recent posts on Polkadot’s account.
Polkadot stock has pulled back from the crucial support level at this level.
DOT stock looks set to continue its downward trajectory in the long run as bears broke through the $4.61 support level that bulls were struggling to hold on to. This represents a major setback for investors and traders which has exacerbated the general sense of skepticism within the community.
Related reading
With the community not trusting the platform, investors and traders will see this as a sign of poor governance at Polkadot.
In the meantime, DOT investors should try to slow the token’s downward momentum in the coming days or weeks. If the overall sentiment towards Polkadot doesn’t improve in the next couple of weeks, we can expect more pain for DOT as investors and traders find value elsewhere.
Featured image by Pexels, chart by TradingView