The cryptocurrency Polkadot (DOT), once holding high rankings, is facing significant challenges. Recent price drops and decreased network activity raise questions about its future.
Polkadot (DOT) Price Decline
Polkadot (DOT) peaked at $55 in November 2021, followed by a steep decline. Currently, the price stands at $3.4, representing almost a 94% drop from its all-time high. On May 14, 2025, the price dropped to $3.02—the lowest level since August 2020.
Potential for Recovery
Despite the bearish trend, there are signs of potential recovery. For instance, in April DOT entered oversold territory, followed by a price increase. Currently, DOT trading volume in the derivatives market amounted to $645 million, with a 55% increase over the last 24 hours, indicating growing interest from investors.
Network Performance Challenges
Despite being one of the oldest blockchains, Polkadot faces serious competition. Token volume has decreased from a peak of $3 billion in November 2024 to less than $400 million. Active addresses on the network have also significantly decreased from a high of 341,000 in November 2021 to less than 60,000 in June 2025. However, the number of token holders has been steadily increasing, indicating optimism among long-term investors.
Polkadot (DOT) stands at a crossroads between potential recovery and significant market challenges. It is crucial to monitor changes within its network and investor behavior in the coming months.
