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Why Polkadot is Still one of the Best Projects to put on your Watchlist in 2023

It’s that time of year when investors begin to reassess their portfolios. Polkadot, which saw a lot of development in 2022, appears to be one of the safest bets in the crypto market.

In terms of Polkadot in 2022, one thing stands out. It ranked first in terms of its ability to attract institutional investors. The most commonly held liquid asset in hedge fund portfolios and crypto ventures was DOT. According to a Messari analysis published earlier this month.

The data presented above accurately depicts the situation, particularly in the first half of 2022. Nonetheless, it demonstrates healthy demand for DOT as well as recognition of Polkadot’s rapid development and potential.

Hedge funds and investment firms frequently have early access to information, so it’s no surprise that they’re betting on the Polkadot ecosystem.

DOT’s price action remained bearish for the majority of 2022. At press time, it had reached a new 2022 low of $4.22, almost reaching oversold territory.

Given its current position, DOT’s current level may appear to be a healthy discount. If the bearish momentum continues, it will enter oversold territory. If it was appealing to institutional investors at its June lows, it is likely to be more appealing now. Is this, however, the case?

Some DOT metrics already point to some bullish action in the near future. On December 25, for example, its volume metric set a new monthly low. Since then, it has gradually recovered.

Can this, however, be translated into bullish volume? An examination of DOT’s market capitalization revealed that the bears dominated for the majority of December. However, its market cap has increased by approximately $100 million in the last 24 hours.

At first glance, the increase in market capitalization may appear to be significant and indicative of accumulation. However, in the grand scheme of things, this sum is still quite small. The constant decline in development activity can be cause for concern because it does not inspire confidence among investors.

On the other hand, market sentiment has improved slightly. The weighted sentiment metric has risen slightly in the last two days, indicating that investors are embracing a bullish outlook.

If markets do not improve, DOT may still face some challenges. Regardless, it is heavily discounted, and the current price range is appealing to long-term investors.


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