Analyzing if the price surge of Polkadot [DOT] will continue

Polkadot [DOT] hit a milestone due to its surging prices. Recently in the AltRank, the DOT coin was behind Ethereum ETH which indicated a bullish signal for the DOT coin holders.

The price of DOT also reflected the news, which has risen by over 7% in the last 24 hours. As of now, the price of DOT stands at $5.95, and its market cap has exceeded $6.9 billion.

There was a surge in the prices of DOT after ranking up in AltRank, however, the gains were not in line with that rank. On the contrary, other cryptocurrencies like Cardano (ADA) and Binance Coin (BNB) experienced greater gains compared to DOT. For one it could be the result of a recent announcement by MixBytes – a blockchain auditor – that they no longer support Lido on the Polkadot and Kusama networks. This could have had an impact on investor sentiment towards DOT.

Can DOT continue with the price surge?

The Polkadot ecosystem has made a lot of progress in recent years. Enough positive developments to drive the future growth of the DOT coin, despite all the challenges.

One such development is the update to Polkadot’s NFT ecosystem. Recently, Unique Network, a para chain of Polkadot, minted proof-of-attendance NFTs for the fashion label DUNDAS. These NFTs were shared with the guests who attended the fashion label’s show at Paris fashion week. The positive aspect of this development is that it could increase the adoption of NFTs on the Polkadot network and attract more users to it.

Furthermore, SuperHedge, a decentralized finance (DeFi) platform, announced that it had selected Moonbeam to launch its testnet. SuperHedge will be able to connect and interact with various blockchain networks via Moonbeam’s cross-chain network. It includes Polkadot and Ethereum Virtual Machine (EVM). This feature will allow SuperHedge to expand its reach and provide users with access to a wider range of assets and services across different blockchain ecosystems

Bullish sentiment over On-chain performance

The recent on-chain metrics indicate a Bullish signal and have run a bullish sentiment across the holders of DOT coin. This has given hope that the prices may rise further in the coming days.

The Bearish sentiment was wearing off according to the data from LuanrCrush. As the rise in the price was accompanied by a rise in the trading volume as well. The demand for DOT in the futures market has also increased as one can assume from the recent rise in its Binance funding rate. Furthermore, DOT has managed to attain a high level of social media attention, with its social volume increasing significantly.