These on-chain indicators show that the short-term outlook for DOT and KSM is not very positive

So far, altcoins have followed in Bitcoin’s footsteps to some extent. Their charts are often characterized by heavy price losses and falling market capitalization. The history of DOT doesn’t seem to be any different at the time of writing. Among the top 10 cryptocurrencies on the market, the DOT has fallen the most (16.46%) in the past 7 days.

After seeing an ATH of $ 47 in May, the DOT began to decline. In fact, DOT is currently trading at $ 12.72.

DOT USDT. Source: TradingView

The same goes for KSM. KSM has lost more than 10% in value in the past week. With parachain auctions taking place in the ecosystem, the diminishing short-term ROI is seen as the “worm of the pot”. In particular, the previous rallies of these altcoins were driven by increased inflows, volume and on-chain activity. However, the same doesn’t look promising at the time of writing.

KSM USDT. Source: TradingView

KSM’s trading volume value fell from $ 199 million to just $ 101 million that day. On the other hand, although DOT volume exceeded the $ 1 billion range a few times during the first week of July, it has only been between $ 600 million and $ 800 million recently.

Social Mass of DOT (pink) vs. KSM (blue) | Source: Mood

While parachain auctions don’t trigger volume or price, it should be noted that many people from the community have been talking about ecosystem-oriented developments on social media platforms. The proof is that the social mass of these two alts is increasing noticeably. If the trend continues, the DOT and KSM ecosystems are likely to have positive effects.

However, there is currently one more cause for concern. DOT development activity has decreased significantly in the last few days. At the time of writing, the index appears to be following moves from early January this year. Although development does not necessarily have an immediate impact on old prices, it can anticipate the long-term future and viability of the project.

Polkadot and Kusama are ambitious projects based on powerful features. It should be noted that both Polkadot and Kusama have generally improved the validation network over the past year and this is still very important for the future growth of the network. While their prices are currently struggling, the situation will likely still be the best in the long run.

DOT price (green) vs. DOT development (purple) | Source: Santiment

In addition, the volume of all stablecoins in the ecosystem now reflects a cumulative value of $ 51.5 billion. According to this, stablecoins make up 80.59% of the total 24-hour volume of the crypto market. Such numbers make it clear that DOT and KSM are not the only victims of the market turmoil. As market conditions improve, more and more investors will turn to traditional alternatives in the hope that this will change the fortunes of DOT and KSM.

Minh Anh

According to AMBCrypto

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