Why is DOT falling so much (Why is DOT falling all the time)?

08/09/2023 02:31 • Tech Ticker • 103 views

Why is DOT falling so much? Editor’s note: This article is from Xiaonazha88 (ID: xiaonazha88) and is authorized reposted by Odaily Starry Daily.

Recently, the ecological market value of Polkadot has been growing rapidly, but why is DOT falling so much? Today, let’s talk about it. Why is Polkadot rising so much? What is DOT? In the past few days, Polkadot has announced two proposals – Slash and Rebase. These three proposals aim to reduce network transaction costs, increase security, and improve user experience. And these measures are called “upgrades” because it provides a secure way for decentralized exchanges. If this plan is passed, Polkadot will allow all transactions on the chain to be exempt from any review and modification; but since there is currently no officially released version, there is no need to update or adjust.

Essentially, this is a governance voting decision, in which the system requires a fully decentralized network as its control and uses security features managed by the community to protect the integrity of the blockchain.

However, this technology is not the only one that can achieve this goal. Polkadot is the first blockchain project built on the Substrate framework, and its core development team has also released a series of new products. These include the Ethereum Virtual Machine, which allows developers to create and deploy various DApps and run their products and services on the blockchain, while ensuring their compatibility with other smart contracts.

According to Coinmarketcap data, as of May 12, in the first seven days, Polkadot v0.9.1 has surpassed ETH and become the second-ranked Ethereum network, second only to Tezos and Solana.

Nevertheless, Polkadot still has the most users.

With the increasing interest in the cryptocurrency market, it is attracting more people to invest and may drive up prices. (Odaily Starry Daily reporter Colin Wang) Why has DOT been falling for so long? From the end of 2017 to 2018, the price of DOT fluctuated. At that time, the data showed that during the entire bull and bear cycle from early 2017 to 2018, DOT has been in a downturn until the end of February this year when it broke through the high point of $50. Nevertheless, its value has still declined since then. The current price of DOT has dropped a lot compared to the high point of 2020.

Why is DOT falling all the time?

DOT started to rise in October last year, but it has been falling since then.

According to CoinGecko data, as of the end of this writing, the market value of Polkadot is 477 million US dollars, a 19.1% increase from the beginning of the year; the market value of Polkadot has reached 644 million US dollars, a 11.3% decrease from the initial issuance, while the total market value of Ethereum is only 1.07 billion US dollars.

Since February this year, DOT has fallen from the highest point of $0.1 to around $0.5 now.

So what happened this time?

At a little after 3 pm today, DOT experienced a large transfer. At that time, the price was about 0.089 CNY, and then it quickly rose to around 0.058 USDT, with the highest increase reaching 0.017%. Currently, this address is still selling.

According to Coin, these funds were transferred to an unknown wallet, probably to compensate traders’ profits. If users do not have enough money to pay the fees or wait for withdrawals, it will cause losses.

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Why is DOT falling so much (Why is DOT falling all the time)?

Why is DOT falling all the time?

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