Polkadot price slightly picks up with increased spending, development adding fuel
- Polkadot price has registered some gains after a prolonged bearish trend.
- It ranked second among the top blockchains by development activity last week.
- Polkadot Q3 2023 report sees an increase in DOT spending compared to the previous year.
Polkadot (DOT) has struggled with a slow-moving price trend in recent months, but a slight upturn was observed at the beginning of this week. Although there are indications of a weak recovery, increased development activity and higher spending in Q3 2023 should be focused on.
Polkadot price regains some strength
Polkadot (DOT) has been portraying sluggish price action in the last three months. The start of the week on Monday got minor gains for the DOT holders, but there are still weak signs of recovery.
Based on CoinGecko figures, Polkadot's price surged by around 4% in the 24-hour time frame, marking a 6% increase in the past week. This uptick has brought the current DOT price to $4.00, with a trading volume of approximately $203 million.
On the derivatives front, both long and short trading positions are almost balancing out. According to Coinglass data, there were approximately $385,000 in long positions and $430,000 in short positions on Monday.
Polkadot's development activity has gained momentum, securing a second-place ranking among the top blockchains in the last week, as per Polkadot Insider. Development work being undertaken is a promising sign for the network's long-term growth in relative terms. However, Token Terminal reveals that in the last 30 days, the code commits are at 1070, down 29%. Core developers stand at 141.5, down 6% based on a 30-day average.
Polkadot has seen increased spending in Q3
Polkadot treasury expenditure for Q3 2023 released by Polkalytics researchers "Alice und Bob" revealed an increase in spending against the previous year.
Polkadot Treasury Report - 2023 Q3
— Alice und Bob (@alice_und_bob) October 19, 2023
Posted a new report to the forum!
- Polkadot Governance spent 21m USD this year already
- New: Subcategories! Detailed view over spending buckets
- OpenGov refuses to pay for parties
Read: https://t.co/RGPLH1eHTv
Spoilers pic.twitter.com/W8ZSeSKcb5
The research report claims that $21 million or 3.9 million DOT has been allocated so far in 2023, a surge from the $13 million or 1.7 million DOT spent in 2022.
The spending is categorized into Development, Operations, Outreach, Research, and Other, with the first two categories doubling this quarter. Outreach has seen a moderate increase of less than 10%, and Research has surged by 65% as per the report.
While Polkadot (DOT) has shown minor price gains recently, its prolonged sluggish price action dominates the near-term outlook. However, the positive indicators of increased development activity and higher spending could signify promise for the future.
Author
Shraddha Sharma
FXStreet
With an educational background in Investment Banking and Finance, Shraddha has about four years of experience as a financial journalist, covering business, markets, and cryptocurrencies.
