Why is Polkadot (DOT) crypto declining?

The first names that pop up while talking about the crypto sector are Bitcoin (BTC) and Ethereum (ETH). However, various other cryptos also contribute considerably to the overall market’s performance.

The number of cryptos and crypto exchanges is increasing, and there are around 18,222 cryptos and 463 exchanges at the time of drafting, according to data provided by Coinmarketcap.

In addition to that, recent buzzwords like metaverse, Web3 have also emerged some of the popularity of the crypto. Today we explore one such name, Polkadot (DOT) crypto, and the factors that may have triggered its recent downturn performance.

Also Read: Why is Gauntlet (GAU) crypto drawing attention?

What is Polkadot (DOT) crypto?

Polkadot is an open-source sharded multichain protocol that focuses on connecting and securing a network of specialized blockchains. It facilitates the cross-chain transfer of any assets or data, and not just the tokens, while enabling the blockchains to be interoperable with each other.

It was primarily designed to offer a foundation for a decentralized internet of blockchains called Web3. Notably, Polkadot, co-founded by Dr Gavin Wood, Peter Czaban, and Robert Habermeier, is the flagship protocol of Web3 Foundation.

Web3 Foundation is a Swiss-based foundation that intends to facilitate an open-source, wholly operable, and user-friendly decentralized web. Polkadot had two ICOs, the first held in October 2017, and the second was in July 2020.

Also Read: PLD to SPG: 5 REIT stocks to explore amid inflation concerns

Why is it declining?

Though there is no specific news for its recent fall, it is assumed that the recent volatility in the market has led to a decline in Polkadot’s price. The volatility, in general, stays higher in the crypto market than the other traditional financial markets globally.

Meanwhile, the Office of Foreign Assets Control (OFAC) of the US Treasury Department recently issued guidelines for the US citizens and crypto-related companies who are asked to work according to the sanctions against Russia, especially in processing crypto transactions.

OFAC clarified that the US citizens and businesses should comply with the guidelines and rake “risk-based steps” for ensuring that they are not engaging in any restricted transactions.

Also Read: PAXG, XAUT & PMGT: Why these gold-backed stablecoins gaining attention?

In recent news, Polkadot said that there is only a week left for submitting the speaking proposals for Polkadot Decoded 2022. It is an annual conference for all things in the Polkadot ecosystem, ranging from talks to immersive workshops.

The event has been confirmed for June 29 and 30 at four international locations, Berlin, Mexico City, New York, and Shanghai, in three continents. It will be accessible online as well through an interactive live stream.

Also Read: Why is Aergo (AERGO) crypto gaining attention?

                                                     Source: *Data provided by CoinMarketCap.com

Bottom line:

The DOT crypto was priced at US$17.24 at 5:41 am ET on March 15, down by 2.74%, while its volume for the last 24 hours declined 12.60% to US$690.44 million. It has a market cap of US$17.02 billion, and its fully-diluted market cap is US$18.89 billion.

The coin’s total supply is 1.10 billion, and its current circulating supply is over 987.57 million. Its price tumbled 36.78% YTD.

The DOT coin is listed and trades on several major exchanges, including Binance, Huobi Global, Coinbase, etc.

Also Read: Why is Kadena (KDA) crypto gaining attention?

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instruments or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete, or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.