- Polkadot had the highest average nakamoto coefficient.
DOT’s price chart remained red, but there were chances of a trend reversal.
As a researcher with extensive experience in blockchain technology and cryptocurrency markets, I find Polkadot’s (DOT) latest achievement of having the highest average Nakamoto coefficient quite noteworthy. It underscores the decentralized nature of the Polkadot network, which is an essential quality for any blockchain project aiming to gain widespread adoption and trust.
Recently, Polkadot’s [DOT] achieved a significant milestone, showcasing the network’s robust reliability and transparency on the blockchain. This development was noteworthy; however, it failed to boost the token’s price as indicated by its crimson daily and weekly charts.
Polkadot’s new milestone
As a dedicated researcher delving into the dynamic world of blockchain technology, I came across an intriguing revelation from Polkadot Insider – a well-respected source for updates within the Polkadot ecosystem. This insightful figure unveiled that DOT, the native token of the Polkadot network, claimed the top spot on the list of blockchains in terms of average Nakamoto coefficient.
To begin with, the Nakamoto Co coefficient determines the smallest number of entities required to manage one-third of the influence in a blockchain. A higher Nakamoto Coefficient indicates greater decentralization within the chain.
As a researcher studying the cryptocurrency market, I’ve observed that Polkadot continued to make significant strides in its development during the past week.
According to AMBCrypto’s analysis of Santiment’s data, the development activity surrounding the DOT blockchain has significantly escalated. Furthermore, the number of contributors to this development activity has markedly risen over the last week.
DOT under bears’ influence
However, none of this was enough to get rid of the bears, as the token’s price dropped last week.
Based on data from CoinMarketCap, the value of DOT has decreased by 1% within the past week. Currently, it is being traded at a price of $6.99 and boasts a market capitalization that surpasses $10 billion.
As a market analyst, I would attribute the poor performance of certain coins to the unfavorable market conditions that have recently emerged. These circumstances have led to a downturn in the graphs of various coins.
Additionally, it was noted by AMBCrypto that the funding rate for DOT rose significantly during the previous week. Typically, price trends tend to go against the direction of the funding rate.
Nonetheless, things might change soon as investors’ confidence in the token improves slightly.
According to AMBCrypto’s interpretation of Santiment’s findings, after experiencing a decline on May 28th, the sentiment surrounding DOT shifted back to positive.
The rise in optimistic views toward the token was evident, yet its social media buzz saw a decrease, indicating a drop in public interest.
The chances of a trend reversal also seemed likely, as a key technical indicator looked bullish.
As a crypto investor, I’ve noticed an intriguing development in Polkadot’s Chaikin Money Flow (CMF). It recently bounced back above the neutral mark, registering a value of 0.06 at the current moment. This uptick is often seen as a bullish sign and may indicate that the price is set to rise. However, I cannot ignore the bearish signal given by the Relative Strength Index (RSI), which has been moving steadily lower. Therefore, while the CMF’s upward trend is promising, it’s crucial to keep an eye on the RSI’s continued downtrend before making any investment decisions.
Read Polkadot’s [DOT] Price Prediction 2024-25
After examining Hyblock Capital’s information, AMBCrypto identified potential targets for DOT‘s price increase if the market condition becomes favorable for this cryptocurrency. Based on our assessment, a bullish trend for DOT could push its value above $7 once more, with liquidation levels potentially reaching $7.5.
However, if that doesn’t happen, then DOT’s price might plummet to its support level of $6.92.
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2024-06-01 04:08