Anthony Scaramucci, founder of venture capital firm SkiBridge, was bullish on Polkadot.
According to the crypto investor, the latest regulatory update and major tokenomics were among the bullish ones. catalysts who are “quietly rebuilding the momentum” of the channel.
In the last SEC adviceDOT has been classified as a digital commodity like Bitcoin and Ethereum.
Beyond regulatory clarity, the recent tokenomics overhaul capped DOT supply at 2.1 billion. Additionally, annual emissions were reduced from 120 million DOT to 55 million DOT, a reduction of 53%.
The 21Shares Spot DOT ETF was another key catalyst, according to Scaramucci.
However, since the product’s launch, it has only had one day of influx of $544.5,000. For the remainder of March, the Spot DOT ETF saw no inflows, suggesting demand is not as strong as the analyst expected.
But ETF demand isn’t the only thing lagging DOT.
Polkadot network activity is declining
When it comes to network activity and adoption, Polkadot has seen a significant loss of traction. Aside from the initial hype and market rally in late 2024, adoption of the channel is in freefall.
This was illustrated by the decline in the number of weekly average active addresses from 16,000 to 5,000 over the past two years.
It remains to be seen whether the recent tokenomics overhaul will attract users again.
Regarding market dynamics, tokenomics and DOT’s deflationary surge saw sentiment briefly turn positive before returning to negative.
In other words, the changes temporarily prompted traders to be bullish on the altcoin. In fact, during the peak of positive sentiment, the altcoin rose 18%. In other words, the market has welcomed the recent upgrades.
Meanwhile, DOT’s rally has faded to $1.65, a major hurdle in the first quarter of 2026. If lingering macroeconomic uncertainty persists, DOT could extend the pullback to $1.23.
Overall, Scaramucci highlighted the key bullish catalysts for the Polkadot chain and its native token. Despite this, chain traction has deteriorated over the past two years. It was unclear how quickly the recent changes would reignite momentum and possibly set DOT back.
Final summary
- For SkiBridge’s Scaramucci, Polkadot’s bullish argument was to “quietly rebuild momentum” after recent upgrades.
- The channel’s traction has declined over the past couple of years, but it remains to be seen whether recent updates will help revive it.
