Polkadot [DOT] bulls confirm investors’ confidence- Here’s how

• Polkadot crowns the top blockchain protocol list based on development activity.
• The DOT delivered a bullish week but is already showing signs of slowing.

The original DOT cryptocurrency Polkadot just finished a bullish week in which it trailed the top cryptocurrencies. That said, the original network didn’t have much to offer this month.

How much is 1,10,100 DOT worth today?

The DOT was changing hands at $6.45 at the time of writing, slightly retreating from its weekly high. That said, the same price point represents a 20% premium from the weekly low or a 24% rally from the current 4-week low.

At press time, its price movement is in line with Bitcoin and Ethereum, but unlike them, the DOT has yet to reach new YTD highs.

Source: TradingView

The latest price pivot may not be extraordinary but is an important positive step for the Polkadot network. The latter has been relatively overshadowed by other networks and major developments in pipelines.

Speaking of development, the latest GitHub data places Polkadot as the top blockchain network in terms of development activity.

Polka dots feature frequently on the list and topped it several times throughout the year. That highlights healthy confirmation that the network is still being built after several announcements regarding protocol development.

At the time of writing, the development activity metric was at its highest point in the past two weeks. Likewise, the DOT market cap soared back to a two-week high. The last time it touched this mark was on March 14th.

Source: Santim

Realistic or not, this is the DOT market cap in BTC terms

Also on the development front, Polkadot has just announced the availability of Smoldot 1.0.0. The latter is a lightweight Polkadot client that can connect to multiple networks.

The Smoldot light client is one of the projects that can highlight such development activities. However, it could be a small part of a development project that is currently supporting strong development activity.

Do we tend to see more of the positive side?

Well, DOT volatility has dropped significantly in the last two weeks. This may explain why it failed to rise to new YTD highs. Lower volatility may indicate limited price movement but it should be noted that volatility is starting to spike once again.

Source: Santim

The spike in volatility points to a higher possibility of a bearish retracement. The fall in investor confidence in the last seven days as indicated by the sentiment-weighted metric further supports the bearish bias.