The post Polkadot (DOT) Faces User Exodus and Bearish Pressure appeared on BitcoinEthereumNews.com.

Polkadot (DOT) has experienced a decline in user demand in July. The number of active addresses on Polkadot’s Relay Chain has dropped to 170,111. DOT’s price has been trading within a horizontal channel since the beginning of July. The leading Layer-0 blockchain Polkadot (DOT) has witnessed a notable decline in user demand throughout July, with activity on its Relay Chain and parachains on track to close the month at its lowest levels since the beginning of the year. This concerning trend has been accompanied by DOT, the native coin of the Polkadot ecosystem, trading within a narrow range since the start of the month and showing signs of increasing selling pressure. Source: The Block Polkadot’s Relay Chain Experience Drop in User Activity User activity on Polkadot’s Relay Chain, the central chain responsible for coordination and security of the blockchain, and its parachains, which are individual blockchains that operate in parallel and leverage the Relay Chain’s security and interoperability, has plummeted to its lowest point since January. The Block’s data reveals that only 170,111 active addresses have completed at least one transaction on Polkadot’s Relay Chain this month, either as a sender or a receiver. In addition to the decline in active addresses, Polkadot’s Relay Chain has also experienced a substantial decrease in new user activity. Over the past 29 days, a mere 27,900 unique addresses have participated in a transfer for the first time on the network, representing a staggering 75% drop in month-over-month demand compared to the year-to-date high of 112,000 new addresses recorded in March. This concerning trend extends to the parachains on the Polkadot network, which have also seen a 21% plunge in the number of new addresses created during the month under review. These declines in user activity underscore the waning interest in Polkadot among both new…

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Filed under: News - @ July 31, 2024 7:52 am