Polkadot (DOT) is a scalable blockchain that provides interoperability between different networks as well as a secure protocol for connecting different chains. In other words, it is a Web3 project aimed at developing IT infrastructure for a decentralized web, at the center of which, along with other projects, will be Polkadot.
Bill Noble, an experienced Wall Street tech analyst, spoke of an inevitable “crypto spring.” Meaning that a crypto market revival is very near, with Web3 as the next Internet, led by Polkadot and Ethereum.
Noble on the current state of the market: will Polkadot win?
Bill Noble believes that the current crypto winter has one long-term advantage: cleaning up the market and liquidating less viable projects. In fact, the analyst thinks previous market growth was driven by massive liquidity injections by central banks.
He then argues that when central banks stopped printing money, that is when the ‘2008 crash’ of cryptocurrencies occurred. Speculative assets, which should never have gone up in the first place, rightly went back to zero.
Noble believes that we can already see the first hints of crypto spring, that is, a recovery of growth after the crash, in a manner not very different from what happened in conventional financial markets after 2008 or 1987.
He also points out that several experts, including Warren Buffett himself, devalued the Internet and Amazon after the 2002 crash. However, Buffett told CNBC in 2019 that he was “an idiot for not buying” Amazon stock in the past.
Now, Noble is bullish on Ethereum as the backbone of Web3. Indeed, he stated:
“Bear markets represent the best times to study and learn, because it is in these phases that the market decides who will win and who will lose. Web3 will be the next internet, led by Ethereum and Polkadot.”
Noble is also optimistic about privacy coins and endorses statements by US National Security Agency whistleblower Edward Snowden, who claims:
“One day, your wealth could be used against you.”
Indeed, the central banks’ push toward centralized digital currencies will mean that all transactions will be observed and will create an incentive for the development of privacy coins such as Zcash. Hence, privacy coins will go from being a tool for criminals to being used by ordinary people.
Polkadot’s (DOT) flow: potential good news for 2023
Polkadot has been experiencing negative weekly growth. Indeed, recent CoinMarketCap data says DOT has dropped nearly 3% in the past seven days. It was also trading at $4.49 with a market capitalization of over $5.1 billion.
However, CryptoQuant’s data revealed that this may soon change. According to CryptoQuant, the Relative Strength Index (RSI) and Polkadot’s stochastic were both in oversold positions. This was an important bullish indicator that suggested an expected rise in prices in the coming days.
Interestingly, Polkadot Insider, a popular Twitter handle that posts updates related to the Polkadot ecosystem, revealed its weekly statistics. This further established Polkadot’s popularity in the cryptocurrency community.
Moreover, according to the tweet, Polkadot’s social engagement has exceeded 43 million, a testament to its popularity. Not only that, but Polkadot’s Galaxy score also looked positive.
In fact, Polkadot Insider’s official Twitter account reads:
Thanks to @LunarCrush, we aggregated some important social metrics about $DOT 👇
Let's take a look at our graphic below. It will show you how the community feels about @Polkadot in the last 7D 🔥#Polkadot $DOT #DOT pic.twitter.com/iVQFkoaUrV
— Polkadot Insider (@PolkadotInsider) December 25, 2022
Furthermore, Polkadot’s metrics also showed signs of recovery, as most metrics suggested that the token price would increase in the coming days. For example, DOT’s Binance funding rate increased, reflecting its demand in the derivatives market.
DOT’s development activity also increased, which could be considered a positive sign. Polkadot also managed to maintain its popularity as its volume on social media increased last week.