Polkadot's price has lagged other major cryptocurrencies such as Bitcoin and Solana this year, but one analyst expects it to make a strong comeback soon.
Polkadot (DOT) is now valued at $6.2 billion, down 65% from its highs this year. As a result, it has risen from the top 10 coins in the industry to the 16th ranked cryptocurrency.
Polkadot’s performance mirrors that of Cardano (ADA), one of the largest ghost chains whose token has fallen 60% from year-to-date highs.
A possible reason for this price fluctuation is that Cardano and Polkadot lag behind Solana, Sui, Base, etc. in terms of development.
A closer look at Polkadot's ecosystem reveals that it is quite small compared to other chains. For example, Moonwell launched on Polkadot in 2022 and had little traction before expanding to Base, but its total locks on Base rose to an all-time high.
Other important players in the Polkadot network, such as Moonbeam, Acala, Phala Network, and Astar, also failed to scale as originally expected.
In contrast, Solana has become a major player in the blockchain industry, powering over $12 billion worth of meme coins, as well as several gaming and non-fungible token projects.
Base, the layer 2 network launched by Coinbase, has also become a top 10 player in the decentralized finance industry.
Still, popular crypto analyst Ali Chart, citing the chart pattern, predicts that Polkadot’s price will bounce back soon.
A potential catalyst is a new proposal known as West End that would reduce the DOT's inflation rate from 10% to 8% and allocate 15% of these funds to the Treasury.
Polkdot technical is sending mixed signals
Polkadot tokens have been trading sideways in recent weeks. It remains slightly above the key support level at $3.853 and has not fallen below it since September.
DOT is also below its 50-day and 100-day moving averages, indicating that the bears are currently in control.
Further upside will be confirmed if the price breaks above the downtrend line that connects the highest range since August 14th.
