Polkadot second to Ethereum: What it means in the bull market

• Polkadot’s income and costs remained secure final month, and TVL rose.
• Metrics and market indicators have been bullish on the token. 

Polkadot [DOT] outperformed the remainder of the crypto market because it was solely behind Ethereum [ETH] at press time, reflecting greater adoption. Not solely that, however the blockchain’s key community stats additionally remained secure. Whereas this occurred, DOT’s worth gained upward momentum, because of the bullish market. 

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

Nonetheless, aside from its community exercise and bullish market, fairly just a few different metrics have been additionally at play that might have served their roles in supporting the uptrend. 

Polkadot’s community exercise is excessive

On 13 July, Polkadot Insider introduced that Polkadot had outperformed a number of cryptos, and was solely behind Ethereum when it comes to every day lively addresses within the final 30 days. Whereas Ethereum had 350,000 every day lively addresses, DOT had over 172,000.

Arbitrum [ARB], Avalanche [AVAX], and Optimism [OP] accomplished the highest 5 of the record.

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Prime 3 embody:
🥇 @ethereum: 357,844
🥈 @Polkadot:… pic.twitter.com/8s2aKFapKa

— Polkadot Insider (@PolkadotInsider) July 13, 2023

As well as, Token Terminal’s data revealed that the blockchain’s income and costs remained secure within the final month. The truth is, the graph spiked on 3 July 2023. The blockchain’s community worth was additionally growing as its TVL rose, as identified by DeFiLlama.

Supply: DeFiLlama

Whereas these developments occurred, Polkadot’s worth motion turned optimistic, because of the on-going bullish market. As per CoinMarketCap, DOT was up by greater than 6% and 9% within the final 24 hours and week, respectively.

On the time of writing, it was buying and selling at $5.63 with a market capitalization of over $6 billion, making it the thirteenth largest crypto. A take a look at DOT’s metrics gave an understanding of what prompted this surge.

Whereas DOT’s worth declined, its Open Curiosity additionally went down. Likewise, its worth uptrend was accompanied by a hike in quantity. Moreover, DOT’s 1-week worth volatility was excessive, supporting the possibilities of a continued uptrend.

Supply: Santiment

Sensible or not, right here’s DOT’s market cap in BTC;s terms   

Ought to DOT traders be cautious?

Polkadot’s uptrend may proceed longer because the Exponential Transferring Common (EMA) Ribbon displayed a bullish crossover. Not solely that, however its Relative Power Index (RSI) was additionally comparatively excessive, suggesting a continued northbound motion.

Nonetheless, although DOT’s Cash Stream Index (MFI) was excessive, it did transfer down barely. This may trigger bother and stop the token’s worth from going up additional. 

Supply: TradingView