Could Polkadot’s latest referendums have an impact on DOT’s price?

Journalist

Posted: December 12, 2023

• DOT appreciated by greater than 22% in simply seven days 
• Metrics advised that the value uptrend may proceed additional 

Polkadot [DOT], in latest instances, has submitted fairly just a few new proposals which have the potential to alter how the blockchain works. One of the notable ones is Referendum 335. Whereas that occurred, the token’s worth charts managed to stay inexperienced, regardless of the broader market’s bearish situation.

Proposals and extra proposals

In the intervening time, Polkadot is within the strategy of approving a number of new proposals that may have a bigger influence on the blockchain’s future. The primary one is Referendum 335. The proposal is geared toward a brand new public sale schedule for Polkadot for 2024, which, as of now, is passing with 98.1% in its favor. The proposal additionally highlights the choice to cancel the remaining auctions.

THREAD – @Polkadot #PolkadotDigest 11 Dec 2023#Polkadot Information

A brand new parachain public sale has begun as we speak, and Sora is at present within the lead. The Ending Interval begins in ~ 40 hours. https://t.co/OAJWlP6AgZ

— Invoice Laboon | Web3 Basis (@BillLaboon) December 11, 2023

One other proposal is Referendum 340, proposing to open an HRMP channel between Asset Hub and Polimec. This proposal was additionally, on the time of writing, passing with greater than 99% of votes in favor.

As per the official proposal,

“Opening a channel between AssetHub and Polimec is essential as tasks seeking to fundraise on Polimec will accomplish that in secure cash (USDT or USDC) or different tokens as determined by the undertaking elevating funds.”

How can these proposals have an effect on DOT

These proposals, although they don’t have a direct impact on worth, play a significant position in stirring up market sentiment, which in flip impacts a token’s worth. Subsequently, AMBCrypto took a have a look at the present market sentiment round Polkadot.

As per our evaluation, regardless of a number of proposals being beneath voting interval, DOT’s total reputation dropped final week, as is obvious from its decline in social quantity. Damaging sentiment across the token additionally rose, with the weighted sentiment registering a pointy drop after spiking on 9 December 2023. 

Supply: Santiment

Nevertheless, it was attention-grabbing to notice that although the token’s reputation dropped, its weekly worth chart remained within the inexperienced. Based on CoinMarketCap, DOT was up by greater than 22% within the final seven days at press time.

On the time of writing, it was buying and selling at $6.89 with a market capitalization of over $8.6 billion. Actually, traders’ curiosity in buying and selling DOT was excessive as its quantity remained up final week. Demand for DOT within the derivatives market has additionally been excessive, which was evident from its inexperienced Binance funding price.

Supply: Santiment

Learn Polkadot’s [DOT] Worth Prediction 2023-24

AMBCrypto then took a have a look at different derivatives metrics to higher perceive what to anticipate from DOT.

We discovered that whereas the token’s worth surged, its open curiosity additionally appreciated. Every time open curiosity rises, it will increase the probabilities that the prevailing worth pattern will proceed.

Supply: Coinglass