Analyst Issues Polkadot Alert Amid DOT Rally, Says Ethereum's Rivals Fundamentally No Good
A prominent crypto analyst thinks that Ethereum (ETH) competitor Polkadot (DOT) is trending down from a fundamental perspective.
In a new YouTube video, the anonymous host of InvestAnswers tells his 444,000 subscribers that Polkadot's on-chain activity looks bleak, despite positive price volatility.
“I was looking at some data from Subscan on The Block Crypto and here you can see the total number of new addresses is just 1,100 on the seven-day moving average, so this is the low. since December 2020 it's basically been a long time.
The chain is not doing well when it comes to attracting new users and the number of daily active users is also decreasing as we go on. So Polkadot still works today, but when you consider the fundamentals, it doesn't work too well. We shall see. Again, we strongly believe in on-chain activity. ”
This week, DOT rallied rapidly from a low of $6.90 on September 1 to a high of $7.64 on Tuesday. The 10th-ranked crypto asset by market capitalization has since dropped back to $6.91 at press time and is down more than 6.5% in the past 24 hours.
DOT is still down more than 87% from its all-time high of $54.98 it hit last November.
Sep 07, 2022