Polkadot [DOT] Drops Out of the Top 5 Blockchains in Terms of Weekly Development Activity, Will This Impact Its Bull Rally?

Polkadot [DOT] has long been known for its robust development activity. However, data seemed to suggest that this trend might just be changing soon.

output: Blockhain leader Polkadot (DOT) has long been known for its strong development activity. However, the data seemed to indicate that this trend may soon change. Will this recent drop in development have any impact on the token's latest bull run?

Low Polkadot development activity

Coin98 Analytics recently shared a tweet revealing the top blockchains in terms of weekly development activity. It was surprising not to see DOT among the top five on the list.

According to the platform itself, Ether [ETH] topped the list with more than 42 thousand commitments per week. Arbitrum (ARB) and Base followed ETH with numbers of 5.9k and 5.8k respectively. Polkadot's weekly commits reached 5.35K with over 784 developers weekly.

AMBCrypto's look at Santiment data also revealed a similar story. According to our analysis, DOT coin development activity has declined sharply over the past seven days. However, the number of shareholders of its development activity increased during the above period.

DOT bullish coin is getting ready

While blockchain development activity declined, token price action gained upward momentum. According to CoinMarketCap, the price of DOT rose more than 13% last week. The upward trend continued in the last 24 hours as the value of the token increased by more than 3.5%.

At the time of writing, Polkadot is trading at $4.90 with a market cap of over $7.2 billion, making it the twelfth largest cryptocurrency.

AMBCrypto checked the DOT coin chain data on the platform to find whether this trend will continue or not. We found that DOT trading volume has increased, which can be concluded as a bullish signal. In addition, its sentiment weight also improved, meaning that bullish sentiment around the token was rising.

However, Polkadot's funding rate has increased on the charts. Prices usually tend to move in a direction other than the interest rate. Polkadot's open interest also decreased as the metric fell, indicating a higher probability of a change in the direction of the prevailing price.

AMBCrypto's assessment of Coinglass data also pointed to another bearish signal. The token's long/short token ratio decreased, meaning that there were more short positions in the market compared to long positions.

Apart from this, Polkadot's fear and greed indicator was in 'greed' mode at the time of the squeeze. This means that there were possibilities for the price to fall.

Therefore, AMBCrypto looked at the DOT coin liquidation density map to look for upcoming support and resistance areas.

Read Polkadot (DOT) price predictions for 2024 and 2025

According to our analysis, liquidations will increase near $5, which could disrupt the DOT coin’s bull run.

In the event of a price correction, investors may see DOT coin drop to a price of $4.3 on the charts.

Apart from strong development activity, Polkadot (DOT) has always been among the best performing cryptocurrencies in terms of price. However, Coin98 Analytics recently revealed that DOT coin development activity has declined significantly recently. Will this affect the rise in the price of DOT coin?

Polkadot coin development activity has declined significantly recently, raising concerns about its impact on the rise in the price of the DOT coin. According to Coin98 Analytics, it is no longer

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