Polkadot Records Strong Start to the Year as Network Development Surge

Polkadot (DOT) started the first week of 2023 off well, climbing 8% over the previous seven days, according to data on CoinMarketCap.

The ecosystem as a whole has recently been highly positive, mirroring the direction of the cryptocurrency market. The DOT ecosystem is reportedly registering massive new on-chain users, peaking on January 6th at 2,126 new users, according to Polkadot Insider, who issued an on-chain update of the ecosystem.

Revenue for the ecosystem gradually increased as well. According to Polkadot Insider’s report, December’s final week, which includes January 1, had average revenues of $671.8 million, but this week, those figures increased to $709.3 million.

It is nevertheless impressive that Polkadot published a blog post last year that summarized ecosystem advancements. The DOT network has approximately 550 projects running on-chain or being developed on the ecosystem, despite the bear market’s tight grip. Polkadot also has over 71 parachains, with development expected to continue even during the bear market.

This is evident in the on-chain development activities that exploded at the start of the year. Additionally, Polkadot secured significant collaborations with Square Enix, a developer of video games, and NTT Docomo, a phone provider in Japan, boosting the Web3 infrastructure of the ecosystem.

Polkadot Could Return to Its Support Base Without Trend Reversal

Despite DOT’s most recent weekly increase, favorable sales, increasing development activity, and significant tie-ups might not have much of an impact on the stock price. The token’s lethargic pace, which began in May last year, has not been broken. If this downward trend is not reversed this year, the token will eventually return to its $4 support level.

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