Blockchain

Polkadot becomes a development center – should I invest in DOT now?

Follow report by Electric Capital, Polkadot is currently the second largest on-chain development ecosystem after Ethereum, with significantly higher development activity than other major altcoins.

Although Solana became a DeFi attraction earlier this year thanks to the NFT hype, it still lags behind Polkadot with around 1,000-2,000 developers.

Polkadot now has 1,000+ developers | Source: Electric Capital

Plus, everyone knows the Polkadot Parachain and its auctions. In the next few days, the winning project of the second Parachain auction of the first round, Moonbeam, will complete the full launch phase on Polkadot. When the process is complete, the network also enables EVM for the user.

But even before Moonbeam had finished its market launch, Polkadot started a second auction round. After Efinity finished in sixth place, Composable Finance outperforms its competitors and is aiming for seventh place.

Source: Parachains.info

This is proof that Polkadot could attract more and more developers and could even become a major DeFi hub in the future.

Should you invest in DOT now?

Attracting more investors with large investors will mostly help the network grow, but unfortunately now is not the time to get involved.

Due to the general downtrend in the market, the price of DOT has fallen 43% from the ATH level and has even lost more than 17.35% in the past three days.

But the downtrend is not an issue for the DOT as it is currently weakening. While the MACD suggests the possibility of bearish divergence, confirmation is required within the next 72 hours.

DOT. Price action | Source: TradingView

At this point, recovery is the only hope for DOT. It needs to attract new investors as interest in investing in the asset is low and investor sentiment drops to a seven-month low.

Polkadot investor sentiment | Source: Antiment

Since the risk-adjusted return for DOT is currently negative, it is best to wait a few green candles before entering.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.