DOT needs a push from Bitcoin, but how long should you wait?

DOT is one of the top 10 cryptocurrencies with significant network activity. In fact, it is one of the relatively well-developed of all the top 10 coins. That doesn’t make it immune to market developments, however, and it looks like this altcoin needs Bitcoin now more than ever.

Bitcoin-based DOT

Along with the market, the DOT has fallen by almost 15% in the past 7 days. Typically, the recovery price is based on network performance. However, this is not the case with DOT.

Price table POINT 4 hours | Source: TradingView

Polkadot has been very active lately when it comes to network development. The proof is that the parachain auctions are getting very hot. Just yesterday, Moonbeam Network won the second auction with around 35 million DOT donated to them.

On Github, too, the network has seen a steady increase in development activities with an average of more than 28 contributors working on a daily basis.

Development activities of Speckle | Source: Santiment

But investors and the DOT itself are following Bitcoin’s lead. Because that are related to each other There is very strong between the two assets so it is not uncommon for DOT to follow the price movements of BTC and to have lost 33% in value in the past 2 weeks.

This has also led many investors to sell DOTs, including whales, to minimize losses.

OLDPOINT | Source: Coinmetrics

In the derivatives space, investors are exiting as nearly $ 13 million in long contracts were liquidated today.

Liquidation of DOT | Source: Coinalyze

However, many investors remain optimistic about DOT because of its attractiveness, which is reflected in its social volume, and also because the Altcoin generates better returns than Bitcoin itself.

Social volume of POINT | Source: Santiment

Looking at the price indicators it looks like the downtrend is picking up and it could take a while for the DOT to fully recover. However, thanks to strong network activities and investor support, it will certainly not be long. On the other hand, resilience will also depend on Bitcoin recovering soon.

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Minh Anh

According to AMBCrypto

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