Various altcoins have soared in value today due to Bitcoin’s shift in market mood. Others, such as Polkadot [DOT], have noticed sustained rises, further enhancing its already remarkable performance.
Polkadot witnesses great growth
Bitcoin saw its biggest single-day rally in over two weeks at 5.2%. This price auction propelled BTC not just beyond $44.6k but also further above $47k on the charts.
This instilled bullishness among cryptocurrencies, and Polkadot was one of the beneficiaries, witnessing strong growth. Indeed, this has boosted DOT closer to its 2-month-old resistance level of $23.21.
However, it’s not the first time the DOT has followed the king coin. For months, DOT has been mimicking Bitcoin’s price trend, recording ups and downs in the same way that BTC does.
Unfortunately, Polkadot’s volatility has not been as high as BTC’s as the altcoin’s primary focus has been on its parachain auctions. These are in their third round (thirteenth auction) at the moment.
This is why, despite the network’s stability over the previous 21 days, investors have shown little interest in making significant moves on the network.
Even if the November increase is ignored, on-chain transactions have decreased. The average has declined from more than 200k to slightly more than 100k.
This amount remains enormous when compared to other networks. However, the decrease is disheartening given the Polkadot’s good performance when the Parachain auctions began.
Are you still awake, investors?
This was sparked by investors’ lack of liveliness, which is evident in the volume of transactions made during the day.
Over the previous week, the network has had between 22k and 23k investors. This is a considerable decrease compared to its previous figures.
Even so, given how well the token and network perform at present, a lack of involvement may not be a cause for relapse. DOT has the potential to continue rising or, at the very least, consolidate around its present level.
Relapse is likely to happen since global volatility is now at its lowest level in over 16 months (ref. Polkadot Volatility image). This will keep price fluctuations under control.
With DOT raring to near $23.21, the altcoin will get a chance to flip it into resistance. This price action will enable it to recover all of its losses from 2022.
