A popular crypto analyst thinks Ethereum (ETH) competitor Polkadot (DOT) is looking bearish from a fundamental perspective.
In a new YouTube video, the anonymous host of InvestAnswers tells his 444,000 subscribers that Polkadot’s on-chain activity appears dismal, despite positive movement price-wise.
“I looked at some data from Subscan on The Block Crypto, and here you can see the total new addresses are only 1,100 on the seven-day moving average, so this is the lowest level since basically December 2020, which is a long time.
The chain is not doing very well when it comes to attracting new users, and the daily active user count is also dwindling as we go forward. So Polkadot’s still pumping today, but when you look at the fundamentals it’s not doing too good. We’ll see. Again, we’re a big believer in activity on the chain.”
This week, DOT briefly shot up from a low of $6.90 on September 1st to a high of $7.64 on Tuesday. The 10th-ranked crypto asset by market cap has since dropped back down to $6.91 at time of writing and is down more than 6.5% in the past 24 hours.
DOT remains down more than 87% from its all-time high of $54.98, which it hit last November.
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Featured Image: Shutterstock/Mia Stendal
