- Partnerships and developments have led to a surge in social engagement.
- Increasing trading volume along with rising prices can push DOT higher.
According to blockchain research group House of Chimera, the Polkadot (DOT) ecosystem has experienced significant growth in terms of social engagement. Social engagement in cryptocurrency markets, whether real or artificial, captures sentiment about a project.
Therefore, the surge in the indicator suggests that Polkadot has become a project that a significant portion of the cryptocurrency public is watching. In the post, House of Chimera explained that there was a good reason.
According to the advisory firm, Polkadot’s expanding partnerships with other protocols and certain upgrades have helped it reach this point.
.@Polkadot‘s Pulse: Capturing the surge in social engagement
🔹The $DOT As the protocol continues to mature, the ecosystem has experienced significant growth in social engagement.
🔸Continuous partnerships and protocol upgrades have driven growth. pic.twitter.com/qBe5DJOVQd— House of Chimera (@HouseofChimera) January 29, 2024
Polkadot continues its work.
Take a look at Polkadot’s X handle showed They say they were collaborating on another project. For example, the protocol recently announced a partnership with Manta Network.
Besides, there was one more thing, Related Onboarding security audit projects. Moreover, the addition of five new parachains in October 2023 also contributed to the increase. Parachain runs parallel to the Polkadot relay chain.
These upgrades have been some of the reasons why Polkadot remains one of the top projects with active development activity. However, AMBCrypto reported a few days ago that Polkadot had fallen behind Cardano (ADA) in the rankings.
Despite the decline, Santiment data showed that DOT is performing well in terms of social dominance. Social dominance measures the proportion of discussions a project has compared to other projects with larger market capitalization.
At the time of reporting, DOT’s social dominance was 0.629%. This reading suggests that discussions about Polkadot have increased and been published in the media.
Source: Santiment
Emotions Favor Tokens
Weighted Sentiment was in a similar situation. The weighted sentiment on January 28 was -0.703, indicating that participants were not optimistic about DOT. However, at the time of writing, the tide has turned and the indicators are positive.
A positive reading here means that the player’s perception of the DOT is optimistic. But has this been reflected in the price movement in any way?
At press time, DOT was changing hands at $6.96. This value has increased by 15.08% over the last 7 days. If DOT continues this performance, AMBCrypto’s $15 prediction could come true.
Meanwhile, on-chain data shows that DOT trading volume has been increasing since January 27th.
Source: Santiment
How much is 1,10,100 DOT worth now?
The trading volume at that time was 137.74 million. However, data at press time showed DOT trading volume increased to 334.85 million.
Regarding price action, if volume continues to increase, DOT could target $9 next. However, if profit taking occurs, it may be possible to get back to $6.