Polkadot [DOT]: Can these factors boost network TVL? Decoding…

• The number of Polkadot stakers gained an upward momentum.
• DOT’s price also turned bullish, which could increase the network’s TVL.

As per Polkadot Insider’s 10 April tweet, the Polkadot’s [DOT] network revenue spiked quite a few times last week. Moreover, DOT registered the highest revenue of $1,473 on 6 April 2023. 

👀 Let’s get to know the on-chain weekly recap of @Polkadot 👇

The below picture illustrates:
👉Daily transfer amount
👉Total revenue
👉Social Performance#Polkadot #DOT #Onchain #PolkadotInsider pic.twitter.com/spebybWVpE

— Polkadot Insider (@PolkadotInsider) April 10, 2023

Read Polkadot’s [DOT] Price Prediction 2023-24

However, Token Terminal’s data showed that DOT’s revenue declined marginally over the last couple of weeks. 

Source: Token Terminal

Polkadot: Revenue down, but TVL…

Despite the marginal decline in revenue over the past weeks, it was interesting to note that DOT’s TVL continued to rise. As per DeFiLlama, Polkadot’s TVL registered a sharp spike in February and since then has remained consistently high. In the last 24 hours, DOT’s TVL went up by nearly 2%. 

Source: DeFiLlama

A major reason behind DOT’s increasing TVL can be attributed to the rise in the number of DOT stakers. According to Staking Rewards, the graph mapping the number of DOT stakers was on an increasing trend, which suggested that DOT’s TVL can go up further in the coming weeks.

Source: Staking Rewards

Not only in the number of stakers, but DOT’s price action, which recently turned bullish, might have also played a part in the increment of TVL. As per CoinMarketCap, DOT’s price increased by over 3% in the last 24 hours. At the time of writing, it was valued at $6.38 with a market capitalization of more than $7.4 billion. 

An uptick supported by metrics? 

The latest price increase can be largely attributed to the bullish market condition, as most of the metrics were not supportive of the surge. For instance, DOT, which is known for its development activity, registered a decline in that metric over the last week.

The price hike also couldn’t help in improving sentiments around DOT, as evident from the negative weighted sentiment.

Source: Santiment

Nonetheless, DOT’s social volume remained high, reflecting its popularity. After a decline, DOT’s one-week price volatility also went up, increasing the possibility of a continued uptrend, which could help further boost the network’s TVL. DOT was also in demand among the long position traders, which was another positive sign for the token. 

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The bulls have buckled up

A look at Polkadot’s daily chart suggested that the bulls have stepped up their game. For example, the Chaikin Money Flow (CMF) registered an uptick and was headed further away from the neutral mark of 0.

DOT’s Relative Strength Index (RSI) also followed the same trend, which further increased the chances of a continued northbound price movement in the days to follow. 

Source: TradingView