Polkadot Treasury Reserves at All-Time Low And DOT Bears Aren’t Helping
02 Novembre 2024 - 3:30AM
NEWSBTC
Polkadot is among the top blockchains, securing a spot in the top
20. Even though the platform promotes blockchain interoperability,
a feature needed in the age of increasing fragmentation, DOT prices
have failed to inspire bulls. This state of affairs on price
charts reflects the general trend across the board, especially in
leading smart contract platforms like Ethereum and Solana. Polkadot
Treasury Reserves Down To All-Time Lows Unyielding bears have been
forcing prices lower over the months since DOT rose to around $10
in Q1 2024, depleting the Polkadot Treasury Reserves. Related
Reading: Bitcoin Price To New ATH Soon? Analyst Who Called $72,000
Surge Reveals What Needs To Happen In early November, one observer
on X said they stood at all-time lows. However, it could get worse
for Polkadot should the bears of Q3 2024 flow back, forcing prices
below local support levels. The daily chart shows that DOT has
critical support at around $3.8. This level marks September and
October lows. On the other hand, the coin is facing strong
liquidation pressure at $4.6 and $5. As the coin ranges, the
direction of the breakout could shape the short—to medium-term
trend but also impact the Polkadot Treasury. A lot depends on
whether DOT prices will recover, which will, in turn, help the
Polkadot Treasury reserves recover. Technically, prices play a big
role. When bulls take over, the reserve, denominated in DOT,
increases in USD terms, easing pressure on the team. Policy
Intervention To Boost Funds To further increase inflows into the
Treasury Reserves, the Polkadot community passed a policy to reduce
inflation. Specifically, the community voted to drop DOT annual
inflation from 10% to 8%. With low inflation and sustained on-chain
demand, DOT prices may find support. Additionally, 15% of staking
rewards distributed from stakers will be moved to the Treasury.
Related Reading: Bitcoin Open Interest Reduced By $2.1 Billion In
24 Hours – Time For Spot To Push The Price? The analyst predicts
these changes could boost the Treasury by adding 1.5 million DOT.
This will be the much-needed infusion of funds that may increase
the Treasury Reserves after months of low income. The
team could build better and even strike quality partnerships,
improving the blockchain’s ecosystem. Based on H1 2024 data, the
team spent most on outreach, while nearly 27% went to development.
The rest was split between funding research, operations, talent,
and the economy. Given the valuation in the year’s first half, they
spent $87 million, or around 11 million DOT, in total. Feature
image from UnSplash, chart from TradingView
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