Negative crypto market sentiment has seen Polkadot trading volume fall steeply in the first quarter of the year.
Polkadot, like many cryptocurrencies, attracted relatively lower investor interest in the first quarter this year compared to the same period in 2021.
Polkadot trading volume during the first quarter of this year was approximately $108.17 billion, according to Be[In]Crypto Research.
There was a 63% fall in trading volume between Jan and March of 2021, or $295.31 billion.
What caused the decline in Polkadot?
The selling pressure that took over the market in Dec came after major coins reached all-time highs in Nov.
Out of the 10 biggest markets of Polkadot, nine of them saw DOT paired against stablecoins such as United States Dollar Tether (USDT), and Binance United States Dollar (BUSD). Stablecoin pairings are a sign of a bearish market.
The selling pressure that took over the market in Dec came after major coins reached all-time highs in Nov.
Out of the 10 biggest markets of Polkadot, nine of them saw DOT paired against stablecoins such as United States Dollar Tether (USDT), and Binance United States Dollar (BUSD). Stablecoin pairings are a sign of a bearish market.
To understand events, in Jan 2021, Polkadot trading volume was around $104.32 billion with a single-day high of $8.92 billion. Decreased investor interest led to a DOT trading volume of $45.68 billion in Jan this year, reaching a single-day high of $2.77 billion.
In Feb 2021, Polkadot trading volume was in the region of $118.88 billion with a single-day high of $7.51 billion. By this Feb, DOT trading volume had fallen to $32.56 billion and had a single-day high of $2.25 billion.
In March 2021, Polkadot trading volume was $72.09 billion with a single-day high of $3.75 billion. By last month, however, the trading volume had fallen to around $29.93 billion, with a single-day high of $1.66 billion.
DOT Price Reaction
Polkadot opened on Jan 1 with a trading price of $26.72, reached a quarterly high of $30.83 on Jan 3, and closed the first quarter of the year at $21.30. Overall, there was a 20% decrease in DOTs opening and closing price in Q1 2022.
For the sake of comparison, Polkadot opened on Jan 1 2021, with a trading price of $9.29, reached a quarterly high of $42.06 on Feb 20, and closed the first quarter of 2021 at $37.03. Overall, there was a 298% increase in DOT’s opening and closing price in Q1 2021.
Disclaimer
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