Development activity
Polkadot is a protocol that enables interoperability between different blockchains, and it continues to please its developers in terms of activity metrics. According to analytics company Santiment, the platform, along with its Kusama test network, hold the top spot for activity on GitHub over the past 30 days. Their score is 527.7, which beats Charles Hoskinson’s third-place project Cardano by 1.17 times. Other projects in the top 10 include Internet Computer, Hedera, Vega Protocol, Status, Cosmos, Ethereum and Decentraland.
It is worth noting that the top three in developments have remained unchanged for quite some time. For example, in Santiment’s January report, the same projects, Polkadot, Kusama and Cardano, were the top-ranked projects. We can conclude that these platforms are methodical in their approach and the July 2023 statistics are not a one-off event.
The high developer activity suggests that the likelihood of future project success is rather increasing. No one will invest money if they don’t believe in what they are doing. It’s also clear that since management is on a path of improvement, the likelihood of the platform being a scam is decreasing.
And in what other areas is Polkadot developing?
New Polkadot partners
Vodafone, a major UK mobile operator, has announced its entry into the blockchain world. The company has partnered with Web3 developer Aventus and Polkadot. According to Vodafone’s blockchain lead David Palmer, these partnerships will help reduce losses in the airline industry, which costs $400 million annually. The idea is that Aventus SIM cards will be used to track the. In doing so, Vodafone is set to become a Polkadot validator.
In addition, talks between the platform and leading blockchain security company OpenZeppelin are about to begin. Galo Tocagni, vice president of security services at OpenZeppelin, spoke about the long-standing collaboration with Polkadot. In early 2023, they were already involved in the development of a defense for the native smart contract language Polkadot ink. Now they want to build a parachain library that will provide faster and more secure access to the Polkadot space.
The platform will also work with consulting giant Deloitte to develop a new Know Your Customer (KYC) policy.
And how does Polkadot’s internal and external activity affect the price of the DOT token?
Polkadot technical analysis
If there is any impact on the price, it’s certainly not linear. Polkadot is not the 2023 leader among cryptocurrencies in terms of price growth. It only added just over 20% of its value from January through July. By comparison, bitcoin is up nearly 80%, ether has added more than 56%, and Ripple has soared more than 108%.
Still, Polkadot’s relatively poor performance in 2023 doesn’t suggest the coin doesn’t have potential. For example, between June 10 and July 14, the price of DOT increased by 50%. Now, though, it has already corrected that growth.
Polkadot is currently trading at a strong support level – around $5.17 – that was formed back at the March lows and later confirmed by the May retracement. The fact that the DOT price is above the 50-day moving average (marked in blue) should give optimism to the bulls. The resistance level was around $6.28, the high for the last three months.
Source: tradingview.com
Famous crypto experts also believe in Polkadot. For example, Michael van de Poppe believes that the Tier 1 protocol can become a real competitor to Etherium or at least keep up with it due to its technological developments. At the same time, the analyst is not sure that it is possible to invest in Polkadot 100% of the time. Van De Popp proposes a strategy where only 10% will come from this cryptocurrency. He still prefers to invest the bulk of it in bitcoin and etherium (35% in each).
Artificial Intelligence also thinks Polkadot will grow. ChatGPT believes its value will soar to $150 at the end of 2023 and $250 at the end of 2024. As of this writing, the DOT price is $5.2. In other words, AI believes in nearly thirty-fold growth within six months, and nearly fifty-fold growth within a year and a half. But whether to take such a forecast seriously – everyone decides for himself;
Thus, Polkadot is an incredibly fast growing crypto project. It has been leading in developer activity for months, crypto investors believe in it, and large companies are ready to cooperate with it. That said, in terms of value growth rate, DOT is not at the top of the list in 2023.
This material and the information in it does not constitute individual or other investment advice. The opinions of the editorial team may not reflect those of the author, analytical portals and experts.