Polkadot has been in crisis since last month as investors and traders have been pulling out of the market. According to CoinGeckothe token has fallen over 16% in the past 2 weeks. With bears controlling the market, Polkadot’s short-term gains could be at risk.

Despite showing that Polkadot can still have staying power, users are still skeptical about the platform’s viability and DOT’s ability to go up in the coming days. With low investor confidence and a seemingly overhyped feature, Polkadot could have a gritty ride in the coming days.

July: The Perfect Month for DOT?

In a recent post by X on the official Polkadot account, They shared July metrics for the platform, which has generally shown robust growth over the past month, saw a 1.1k enhance in unique voters on the government side, with over 118 referendums held on the platform.

Great weekend read → July ’24: Key network metrics and insights

At first glance, Polkadot had:

🔹 ATH for OpenGov Reference Count
🔹 GitHub weekly commits are increasing
🔹 Constant activity on the forum and fresh users

See details and get special insight into the Polkadot app 👀https://t.co/e6eCquRWbk

— Polkadot (@Polkadot) August 16, 2024

Polkadot also has a very busy developer base, accumulating over 5.5k weekly commits to its GitHub repository out of over 29.9k repositories. However, busy developers are not rushing into the platform. According to the latest data, the number of weekly busy developers in July was at 900.

In a post by the Polkadot Chief Ambassador Alice and BobThey detailed a problem that has been plaguing the ecosystem for some time.

Inflation is caused by OpenGov spending more than it earns because they simply print more DOT to make up the difference.

To solve inflation, reduce wasteful OpenGov spending. Your DOT tax should be spent well, not badly. https://t.co/20wq07eZPR

— Alice and Bob 🥐 (@alice_und_bob) August 17, 2024

“Inflation is caused by OpenGov spending more than it earns because they simply print more DOT to make up the difference. To solve inflation, reduce OpenGov’s wasteful spending. Your DOT should be spent well, not poorly,” they wrote in the post.

This sentiment is shared by some in the community, who argue that OpenGov’s spending is problematic and should be reduced to support the community, with some even going so far as to comment on recent posts on the Polkadot account.

Polkadot is falling from key support at this level

DOT will look to continue its downward spiral in the long term as bears break through the $4.61 support level that bulls have been trying so challenging to hold. This represents a major setback for investors and traders, which has added to the general skepticism in the community.

The community does not trust the platform, and investors and traders see this as a sign of penniless management of Polkadot.

In the meantime, DOT bulls should try to tardy down the token’s downward momentum in the coming days or weeks. If the overall sentiment towards the Polkadot platform does not improve in the next few weeks, we can expect more pain for DOT as investors and traders find value elsewhere.

Featured image from Pexels, chart from TradingView