Polkadot: What a surge in network activity means for DOT prices

Journalist

Posted: December 23, 2023

• Polkadot’s price surged massively over the last 24 hours as activity soared.
• However, overall sentiment around DOT declined.

As the year comes to an end, altcoins have seen a massive surge in interest. Polkadot[DOT] has been one of the altcoins that has amassed huge interest in the last 24 hours.

Up and up

During this period, the price of DOT grew by 6.28%. At press time, DOT was trading at $8.05.

One of the reasons for the sudden surge in price for DOT could be attributed to a spike in activity on the Polkadot network.

At press time, the Polkadot relay chain recorded 1 million transactions, marking the highest daily activity in its history and surpassing the previous peak of 941,000 transactions on 5th May, 2021. The increased activity is attributed to inscriptions.

Increased activity indicates growing engagement and utilization of the platform, showcasing its capabilities and attracting attention from users and developers.

This heightened interest may lead to further adoption, ecosystem growth, and increased value for the Polkadot network and its native token.

1 Million transactions today on the Polkadot relay chain.

This is the highest activity day on Polkadot in history, topping out the 941,000 transactions on May 5, 2021.

The activity is due to inscriptions. pic.twitter.com/BYoMBREbyd

— asynchronous rob (@rphmeier) December 21, 2023

Due to this, Polkadot secured the second position among cryptocurrencies in terms of revenue, achieving an impressive growth of over 300%.

TOP BLOCKCHAINS BY REVENUE RATE IN 7 DAYS

📊 Witness the economic prowess of the blockchain world

💸 Delve into the top blockchains by revenue rate in the past 7 days—unveiling the financial leaders shaping the decentralized landscape

🚀In the last 7 days, @Polkadot placed… pic.twitter.com/rCt32BygDw

— Polkadot Insider (@PolkadotInsider) December 20, 2023

Looking at other factors

Moreover, the social volume for DOT grew materially over the last few days. This indicated that Polkadot was gaining massive popularity on the social front.

However, despite the rising price, the weighted sentiment for DOT remained negative. This suggested that the number of negative comments made towards DOT had outnumbered the number of positive ones at the time of writing.

Source: Santiment

However, new proposals being made around the network may impact the overall state of the network.

Read DOT’s Price Prediction 2023-24

The Polkadot governance has introduced several impactful proposals that could reshape the blockchain’s functionality. Currently, Polkadot is in the approval phase for various proposals, including Referendum 335.

This proposal focuses on implementing a new auction schedule for Polkadot in 2024 and is currently garnering 98.1% approval.