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Polkadot needs a nudge from Bitcoin, but how long is the wait?

Polkadot is seeing significant network activity as one of the top 10 cryptocurrencies. In fact, it has comparatively one of the highest development activities of all top 10 coins. However, that does not make them immune to the developments of the market and after today it looks like the altcoin needs the king coin more than ever.

Polkadot counts on Bitcoin

Polkadot fell along with the rest of the market, down 10% at press time. Typically, a coin’s recovery is predicted based on its network performance. However, this is not the case with this altcoin.

Polkadot price promotion | Source: TradingView – AMBCrypto

Now Polkadot is very active when it comes to network developments. The ongoing Parachain auctions only underline this. Just yesterday, the Moonbeam network won the second auction with around 35 million DOT raised for it.

The network also recorded steadily increasing development activity on Github with over 28 contributors who worked on average every day.

Polkadot Development Activity | Source: Santiment – AMBCrypto

But investors and DOT themselves are following Bitcoin’s lead. Because the correlation between the two assets is so strong, DOT will inevitably follow the price movement of BTC which caused the altcoin to lose 33% in the past 2 weeks (see Polkadot price action picture).

This has also led many investors to sell their DOT, including many whales who have resorted to it to minimize their losses.

Polkadot whale figures | Source: Coinmetrics – AMBCrypto

In derivatives, investors are exiting as long contracts valued at nearly $ 13 million were liquidated today.

Polkadot Liquidations | Source: Coinalyze – AMBCrypto

However, investors remain optimistic about Polkadot, as its attractiveness is visible through the social volume and the altcoin also achieves better returns than Bitcoin itself.

Polkadot social volumes | Source: Santiment – AMBCrypto

Right now, looking at the price indicators, it looks like the downtrend is picking up and it could take a while for the DOT to fully recover. Thanks to Polkadot’s strong network and supportive investors, it definitely won’t be long now. However, its recovery would depend on how quickly Bitcoin recovers too.

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