- Polkadot kicks off in January with a strong resurgence of development activity.
- DOT is struggling to hold upside and a possible retracement is possible.
Polkadot has regained the top spot as the blockchain network with the most development activity. This is due to his ProofOfGitHub for activity tracker, which is important because Polkadot has taken the lead in terms of development lately.
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Here are some reasons why you should pay more attention to Polkadot and its development activities: The latter is an important measure of the project’s commitment to achieving its long-term goals.
Especially those related to platform development. Polkadot outperformed other top his blockchains, including Ethereum, Cosmos, and Cardano.
Weekly development activity on GitHub:
#1: 383 Polka Dot/Kusama
#2: 351 Decentraland
#3: 273 Status
4th place: 264 Cosmos
#5: 247 Cardano
#6: 232 Ethereum
#7: 218 Internet Computer
8th place: 189 file coin
#9: 183 Vega Protocol
#10: 173 chain link pic.twitter.com/RuFsqr2E4s— ProofGitHub (@ProofGitHub) January 8, 2023
The evaluation of Polkadot’s development activity metrics cooperates with ProofOfGithub’s observations. Network development activity experienced a sharp surge after January 3rd.
Interestingly, the same metric shows a slowdown in mid-to-late December. This may be because the developer was out on vacation and picked up where it left off.
Source: Santimento
Despite the above observations, Polkadot has not released any development-related updates to date. There is a possibility that
Nevertheless, the fact that Polkadot has recorded more development activity than rival networks may not go unnoticed by investors.
Do Development Activities Affect Investor Sentiment?
Healthy development usually has a positive impact on investor sentiment. However, this does not seem to reflect DOT’s weighted sentiment. The latter he has declined since mid-December and has not yet recovered.
Source: Santimento
Despite the lack of investor enthusiasm, the DOT managed to gain 11% in the first week of January. Its MFI indicator has posted healthy inflows since the beginning of the month, but the price is currently experiencing resistance after the RSI reached its midpoint.
Source: Trading View
How many DOTs can you get for one dollar?
The DOT’s struggle to surpass current points is likely to continue in the short term, regardless of healthy development activity. This is because the current levels of the DOT indicate notable selling pressure. Demand for DOT in the derivatives market is also showing signs of weakening.
Source: Santimento
Both Binance and DYDX funding rates have improved significantly since the beginning of January. However, the same metric showed some drift over the last 24 hours.
As far as expectations are concerned, a bearish retracement in the coming days is more likely based on the above observations. However, this does not guarantee the expected results.