As the rebound in some sectors of the crypto market slows, Polkadot (DOT) has captured some momentum, garnering the attention of investors who grabbed it at a discount. According to CoinGecko, the token is up almost 6% today, with the rebound slowing to a mere 2% increase since yesterday. Despite this, investors remain keenly focused on DOT as it gradually ascends.
This uptick is partly driven by Polkadot’s ongoing on-chain developments, which have helped to calm market anxieties following this week’s broader sell-off. The prevailing belief among investors and traders is that this sell-off was a one-time event, fueling hopes for further positive movement in the days ahead.
On-chain activities show Polkadot’s parachains actively contributing to the network’s overall growth. Updates shared by Polkadotters, an X account dedicated to Polkadot developments, highlighted several advancements this week. Notably, Bifrost’s July report revealed remarkable growth for the protocol. By the end of July, Bifrost boasted a total value locked (TVL) of $80.8 million, with over 8 million voucher DOT (vDOT) minted—a clear indicator of active DOT staking on the platform.
In another development, Peaq, a parachain focused on decentralized physical infrastructure networks (DePIN), secured a partnership with Roam, a fellow DePIN-focused platform. This partnership includes the launch of Roam’s network and native token within the Peaq ecosystem, thereby increasing activity and contributing to Polkadot’s growth.
Currently, DOT is trading at $4.61 and is making efforts to breach this threshold, attempting to turn it into a solid support level. However, this effort may be hindered by bears, as the market currently favors downward pressure affecting short-term investor and trader sentiment.
Despite the bearish pressures, the stream of positive developments could help restore confidence shaken by this week’s market decline. The crucial question now is how substantial the gains could be if the rebound continues. If DOT bulls succeed in breaking through the $4.61 ceiling, the token will have a formidable foundation for future upward movement, reminiscent of its pattern in late 2020 when $4.61 served as a springboard for a bull run. Nonetheless, market volatility remains a significant concern for DOT’s performance.
Should major cryptocurrencies continue their rebound to pre-sell-off levels, there may be an opportunity for DOT to reclaim its $6.16 price point in the long term. Until then, investors and traders should exercise caution regarding DOT’s position and momentum, as it remains vulnerable to downward swings.
 gains investor interest amid sector slowdown, up 6% today. Ongoing on-chain developments and key partnerships drive optimism.){kind=link}