Polkadot (DOT) is showing activity in the market by returning to a crucial support level. Let's explore the key factors contributing to this trend.
Return to Critical Level
Polkadot (DOT) has moved above a key support zone that was lost during the tariff dispute. Currently, DOT trades at $4.45, up 3% over the past 24 hours and 8% for the past week. Analyst Friedrich mentioned the possibility of renewed price strength and broader rallies, noting that DOT could follow a path similar to past cycles, potentially targeting a tenfold increase.
Growth in DeFi and Stablecoin Use
Polkadot’s DeFi activity continues to expand, with over $300 million now locked in its ecosystem. Annual percentage returns on major crypto assets remain strong, offering nearly 19% on both ETH and BTC. The launch of the vDOT/ETH pool on July 24 is expected to enhance liquidity and usage of DOT.
Institutional Signals and Market Positioning
DOT's multichain reach has expanded through integration with Uniswap V4 and Arbitrum. Current futures market data shows a long/short ratio of 1.06, indicating a cautiously bullish sentiment in the market. Polkadot founder Gavin Wood introduced a new Proof-of-Personhood (PoP) concept aimed at facilitating human identity verification without centralized authority.
The growth of Polkadot may signal broader changes in the market. The JAM upgrade and DeFi expansion contribute significantly to asset growth and the interest of institutional investors.
