Polkadot makes a new attempt to garner attention – Will it succeed?

Posted: September 25, 2023

• Polkadot sought revival through a strategic partnership amid struggles for market attention.
• Social engagement dwindled, while the protocol faced declining activity and revenue.

In the rapidly evolving cryptocurrency sector, maintaining relevance is pivotal. Polkadot[DOT], despite being a promising blockchain project, faced difficulties in capturing and retaining the attention of the crypto community in recent months.

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Now, Polkadot has initiated a strategic partnership with airdrop.com, a move aimed at rejuvenating interest in the protocol.

On the DOT

The collaboration extended beyond mere partnership, as it included an incentivization strategy. Polkadot introduced the concept of potential airdrops through the airdrop.com platform.

Airdrops, a well-established marketing tool in the crypto space, entices users with the prospect of receiving free tokens. This approach aimed to not only raise awareness but also stimulate user engagement within the Polkadot ecosystem.

3 Objectives/Success criteria

👀Videos are available on youtube and create Polkadot awareness 🖊️Quizzes are available and usable on https://t.co/hjIzDTu2lH
🌟Unique identified users will have fully claimed the airdrop allocation (the users need to install a DOT wallet to be…

— Polkadot Insider (@PolkadotInsider) September 23, 2023

Despite these proactive measures, Polkadot’s social media presence encountered hurdles. Social mentions of DOT, the native token of Polkadot, experienced a marginal decline of 0.2%.

Even more telling was how social engagements associated with DOT saw a substantial dip, plummeting by 9.5% in the past week. These metrics reflected a decrease in online discussions and interactions related to Polkadot.

This decline in social activity inevitably raised questions about the prevailing sentiment surrounding DOT. The weighted sentiment indicator for DOT fell materially over the last month.

This decline signaled a potential absence of enthusiasm or positive sentiment among investors and participants in the Polkadot ecosystem.

Source: Santiment

DOT sees red

Examining the price of DOT, it was trading at $4.03 at the time of writing. Over recent weeks, DOT has experienced a significant decrease in value. The critical question that loomed was whether DOT could reverse this trend and break through resistance levels, particularly the notable $4.22 mark.

The Relative Strength Index (RSI) sat at 44.55, suggesting room for potential price movement and decline in momentum. Simultaneously, the Chaikin Money Flow (CMF) registered at 0.06, indicating a mild buying pressure.

Realistic or not, here’s DOT’s market cap in BTC’s terms

Source: Trading View

The broader view of the protocol’s overall health revealed some negative signs. Activity on the Polkadot network saw a notable reduction of 19.9% in the past month. This decline indicated a potential slowdown in user interactions and engagement.

Furthermore, the revenue generated by the protocol witnessed a substantial decrease of 13.3% within the same period. These statistics raised legitimate questions regarding the protocol’s financial sustainability and performance.