- Polkadot raised $500M however did not retain customers or builders lengthy-time period.
- DOT’s value has fallen 96% since its November 2021 peak, as on-chain demand dried up.
Whereas the cryptocurrency market has skilled vital progress amid rising adoption and acceptability, Polkadot [DOT] has adopted a definite path.
Consequently, the chain’s community utilization and value efficiency have all collapsed in unison.
Essentially the most evident indicator has been its value. DOT has plunged 93.9% from its all-time excessive of $55, set almost 4 years in the past. That deep drawdown has revived debates about the chain’s lengthy-time period viability.
And a few aren’t pulling punches. In response to analyst Nonzee, Polkadot is “useless”—citing its failing utilization metrics and ecosystem decay.
Raised $500M and misplaced the plot: The rise and stall
With $500 million in funding, its core staff pitched a daring imaginative and prescient to outpace Ethereum as the go-to chain for builders.
Supply: Token Terminal
However momentum pale after the launch of Parachains. Actual utilization stalled. Every day Energetic Customers throughout main chains fell to five,000 in 2025.
Developer curiosity, as soon as sturdy, declined from 2,400 to 1,000.
Capital fled as exercise vanished
Supply: DefiLlama
Amidst this decline in community utilization, contemporary capital stopped flowing, whereas present traders exited the market.
As such, DOT’s Buying and selling Quantity has plummeted from 39 billion to five billion, indicating diminished on-chain exercise.
Income, too, evaporated. Polkadot generated simply $462 and stayed beneath $1,000 for 2 consecutive months. That’s a crimson flag for a community as soon as hyped as an infrastructure cornerstone.
Supply: Artemis
Polkadot’s Circulating Market Cap Dominance sat at a meager 0.15%, cementing its slip into irrelevance amid competing chains. Traders responded by reallocating funds elsewhere.
No customers, no devs, no future?
Whereas DOT has continued to say no, different crypto property are rising. In mild of this, it’s a trigger for concern as traders take a step again from the market.
Supply: Messari
Can DOT get better, or is worse to come back?
In response to AMBCrypto’s evaluation, Polkadot is experiencing unfavorable market circumstances. These circumstances place DOT for doubtlessly extra losses on its value charts.
As of this writing, it traded at $3.3, down 26.8% in a month and 47.1% over the 12 months.
Its RSI drifted towards oversold territory, signaling extended promote-facet aggression. If sellers persist, DOT dangers a fall to $3.0 assist, then doubtlessly $2.8.
Supply: TradingView
Consumers would want to step in quickly to forestall deeper injury.
A bounce isn’t unattainable. If sellers ease, DOT could try a push towards $3.6 resistance. But when it breaks beneath $2.6, the case for DOT being a “useless chain” could be extra than simply harsh commentary.
