Polkadot’s TVL didn’t follow the rest of the stats when it moved up in Q2.
At the time of writing, DOT was down nearly 7%, but some market indicators were upbeat.
Dot [DOT] had a difficult second quarter as the price only fell over the past three months. Messari recently posted a report revealing the state of the blockchain in Q2, which highlighted its performance on multiple fronts.
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In the last quarter, the most notable development for the blockchain was the launch of OpenGov. Although there were multiple developments, the price trajectory did not follow. Will Q3 also look the same, or will it have something to offer investors?
Major Polka Dot Updates in Q2
Polkadot’s second quarter started off with a fall in value. However, the quarter had a few major network updates that added a lot of value to the blockchain. First and foremost was the launch of Polkadot’s OpenGov.
With simultaneous referenda, community-based governance bodies, and enhanced delegation flexibility, Polkadot’s new fully decentralized governance architecture, OpenGov, enabled a more effective and transparent decision-making process.
The quarter also witnessed the launch of XCM v3. The new iteration of the message format introduces advanced programmability, bridging capabilities with external networks, cross-chain locking, improved payment mechanisms, and support for NFTs. Apart from that, Acala and Moonbeam also released their parachain slots.
A check on the status of the Polkadot network in Q2
While there were several promising launches in the ecosystem, that didn’t help improve the blockchain’s network activity. DotDaily active accounts fell from 6.29k in Q1 to 5.81k in Q2.
A similar downward trend was also seen in terms of daily new accounts, which had a figure of more than 1.3 thousand in the second quarter.
Source: Messari
Blockchain revenue also registered a decline in the last quarter. According to the report, the blockchain had sales of more than $120,000 in the first quarter, which dropped to nearly $81,000 in the second quarter of the year.
A look at the power of Polkadot
According to the Electric Capital developer reportPolkadot has one of the largest developer bases in the cryptocurrency sector, with over 750 full-time developers and 2,000 total developers.
Polkadot has made major investments in projects like the Polkadot Blockchain Academy, which is preparing for its third cohort wave in Berkeley, California, to advance its developer community.
However, this did not reflect blockchain development activity, which has plummeted over the past three months, as shown by Santiment’s chart.
Source: Sentiment
Nevertheless, despite dips in multiple metrics, the blockchain’s network value has grown over the past quarter. According to DeFiLlamas factsPolkadot’s TVL has gained momentum since the start of the quarter, which is an optimistic development.
In addition, Polkadot’s parachain Moonbeam ended the quarter with a $60 million TVL, leading the second-ranked parachain by more than double its value. Acala, Astar and Parallel, the next three parachains, all maintained TVL numbers in the $20 million range.
Source: Messari
How is DOT doing in Q3?
The start of Q3 was also not what many expected as the quarter also started with the price of the token falling. According to CoinMarketCapDOT fell nearly 7% over the past seven days.
At the time of writing, it was trading at $5.12 with a market cap of over $6.1 billion, making it the 13th largest cryptocurrency.
After an increase, development activity also fell, which was also a negative signal. However, popularity remained high, as evidenced by stable social volume.
DOT’s weighted sentiment also improved, suggesting that positive sentiment was dominant in the market. On top of that, POINTThe Open Interest registered a decline on July 11, increasing the likelihood of a trend reversal in terms of price action.
Source: Sentiment
Read Polka dots [DOT] Price prediction 2023-24
Take a look at POINTThe daily chart gave hope for better days ahead as some market indicators favored the bulls. For example, the Money Flow Index (MFI) gained upward momentum.
The exponential moving average (EMA) ribbon also showed opportunities for a bullish crossover soon, raising the likelihood of a price increase in the days to come. On the contrary, the Chaikin Money Flow (CMF) went the other way which could prevent the price of the token from rising in the near term.
Source: TradingView
This post Will Polkadot’s performance in Q2 continue into Q3?
was published first on https://ambcrypto.com/will-polkadots-q2-performance-continue-in-q3/
