After a positive week for its price, attention is turning to whether Polkadot's recent strategic updates can address its significant long-term market underperformance.
Price rises despite lower trading volume
DOT's price increased by
↗9%
over the last week, outperforming the average for similar Layer 1 projects, which saw a
↘6%
decline. This price gain occurred alongside a
↘52%
drop in daily trading volume.
Polkadot announces major ecosystem updates
The ecosystem recently announced several key initiatives, including a decision by the Polkadot DAO to cap the DOT supply
. Other developments include the launch of an
institutional arm to connect with traditional finance and the release of a new stablecoin called
HOLLAR.
Long-term performance lags behind the market
Despite the recent weekly gain, DOT remains down
↘39%
over the past year, a period where the broader Layer 1 category saw an average increase of
↗39%
. The asset is also trading
↘94%
below its previous all-time high.