Polkadot (DOT) Price Pushes To Levels Last Seen Almost 5 Years Ago

Polkadot (DOT) was among the top most promising cryptopcurrencies during the 2021 bull run. Fast forward to the present and things have turned out extremely different.

DOT has been on an overall bearish trajectory while its native blockchain Polkadot struggles to keep up with the competition.

To put Polkadot (DOT) price fall into perspective, the cryptocurrency soared as high as $55 in November 2021. Fast forward to the present and its $3.4 press time value. A whopping near-94% discount from its ATH.

DOT previously showed signs of recovery from the second week of April to the end of the first 10 days of May. It has since then been in free fall with few failed bullish attempts here and there.

For context, DOT dropped as low as $3.02 on Sunday, which was its lowest price point since August 2020.

Is Polkadot (DOT) Price Slated for a Major Comeback?

DOT’s bearish performance may indicate a lack of confidence among investors. However, its worth noting that its latest downside resulted in price being oversold.

The last time that Polkadot (DOT) price entered into oversold territory was at its bottom range in April. A strong demand wave followed in the subsequent weeks, which was clear sign that investors saw the discount as an opportunity.

Will a similar outcome occur this time? The bears were already showing signs of slowing momentum in the oversold zone, and a bit of a buy-back.

DOT was still among the top coins by marketcap ranking. The cryptocurrency still had a marketcap north despite its recent bearish performance.

This ranking may play a role in attracting back investors especially those looking for heavily discounted opportunities.

As far as its performance was concerned, DOT volume in the derivatives market amounted to $645 million at the time of observation. This was after a 55% uptick in the last 24 hours.

Open interest hovered above $368 million after cooling down further in the last 7 days. However, it was notably higher on a Year-over-year basis.

Which means its appeal in the derivatives segment has been growing. However, demand for DOT may also be influenced by other factors especially network performance.

Is Network Performance Holding Back Action?

The Polkadot network is one of the oldest blockchains but its performance suggests that it has so far not managed to capitalize on its OG status.

In fact, it has been facing heavy competition by some newer entries that have performed much better.

Some of Polkadot’s key metrics highlight negative growth. For example, token volume in November 2024 clocked above $3 billion at its peak.

However, it has since cooled down to less than $400 million, painting a clear picture of just how much things have cooled down.

Polkadot’s stablecoin marketcap has also been declining in the last 6 months. It dipped from over $116 million at the end of January 2025 to $77.5 million as of 22 June.

The above data confirmed that Polkadot utility has been declining. A closer look at its address activity further backed those observations.

Polkadot monthly active addresses soared above 341,000 addresses at its peak in November 2021. It has not managed to push past that figure since then.

For perspective, Polkadot active addresses peaked slightly above 207,000 addresses during the December 2024 peak. It has since cooled down to less than 60,000 addresses in June.

Despite the decline active addresses, the number of holders maintained a steady uptick. Polkadot had about 721,000 token holders in mid-November 2021 and that figure has since grown to 1.5 million token holders. This meant that long term holders were still optimistic about their prospects.