Polkadot has been falling since last month as investors and traders pulled out of the market. According to CoinGeckoThe token has fallen by more than 16% in the past two weeks. With bears controlling the market, Polkadot’s short-term gains could be in jeopardy.
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Despite the evidence that Polkadot can still hit the mark, users remain skeptical about the viability of the platform and DOT’s ability to move forward in the days to come. With low investor confidence and seemingly overhyped functionality, Polkadot could face challenges in the days to come.
July: A perfect month for DOT?
In a recent X post from the official Polkadot account, they shared July figures for the platform, which overall saw strong growth last month. The platform saw an increase of 1.1k unique voters on the governance side, with over 118 referendums on the platform.
Great Weekend Read → July 24: Key Network Indicators and Insights
At a glance, Polkadot had:
🔹 ATH for the number of OpenGov references
🔹 Weekly commits on GitHub are up
🔹 Constant activity on the forum and new usersSee details + get a special preview of the Polkadot app 👀
— Polkadot (@Polkadot) August 16, 2024
Polkadot also hosts a very active developer base, amassing over 5.5k weekly commits made on its GitHub repository with over 29.9k repositories. However, the number of active developers is stagnating on the platform. According to its recent data, the number of weekly active developers has stagnated at 900 in July.
In a message published by Polkadot’s chief ambassador Alice and Bobthey detailed a problem that has been affecting the ecosystem for some time now.
Inflation is caused by OpenGov spending more than it earns, because it simply prints more DOT to make up the difference.
To solve the inflation problem, you need to cut wasteful open government spending. Your tax DOT needs to be well spent, not misspent.
– Alice and Bob 🥐 (@alice_und_bob) August 17, 2024
“Inflation is caused by OpenGov spending more than they earn, because they simply print more DOT to make up the difference. To solve inflation, cut back on OpenGov’s wasteful spending. Your fiscal DOT should be spent well, not poorly,” they said on the post.
This sentiment is shared by some community members, who believe that OpenGov’s spending is problematic and should be reduced to help the community. Some have even gone so far as to comment on recent posts on the Polkadot account.
Polkadot Drops From Crucial Support At This Level
DOT appears to be continuing its long-term downward spiral as bears break through the $4.61 support level that bulls have been trying so hard to cling to. This represents a significant setback for investors and traders alike, adding to the general sense of skepticism within the community.
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With the community distrusting the platform, investors and traders will see this as a sign of poor governance on Polkadot.
In the meantime, DOT bulls should try to slow down the token’s bearish momentum in the coming days or weeks. If the overall sentiment for the Polkadot platform does not improve in the coming weeks, we can expect further difficulties for DOT as investors and traders find value elsewhere.
Featured image from Pexels, chart from TradingView
